Opportunistic Beginnings

Small businesses often originate from an individual's entrepreneurial vision, spurred by opportunities to capitalize on existing skills, resources, or favorable circumstances. These opportunistic beginnings frequently lack strategic direction, operating solely on seizing immediate opportunities rather than a growth-oriented strategy. While seizing opportunities isn't inherently negative, it often sacrifices the sustainability and potential growth that strategic planning can offer.

For instance, Joey, inspired by his grandfather's excavation business, started his own venture utilizing his grandfather's equipment and a storage location on property his family owned. Although initially successful, Joey's business remained relatively stagnant for six years until a business advisor prompted him to consider expansion strategically. Together, they conducted research to identify communities in the region with forecasted growth and low density of competing contractors. This market gap identification led Joey to make strategic decisions based on data rather than impulse.

This shift from opportunistic to strategic decision-making transformed Joey's business trajectory. Instead of expanding in familiar territory, he targeted areas with high forecasted construction rates, resulting in substantial growth beyond his dreams. By leveraging strategic insight, Joey made informed decisions that propelled his business to unprecedented success.

Strategy and Tactics

Strategy begins with direction. It illuminates the rules that govern success in a given business situation. It enables growth because it points toward the peak. By comparison, tactics are the skills and efforts that must be applied to maintain viability by being competitive. 

In the example above, Joey’s business was doing okay after 6 years because he was good with tactics. Growth had been slow, but demand had continued to keep him in business. He became good not only at excavating, but also at marketing, sales, customer service, and reading financial statements to manage his business by the numbers. These tactical skills kept him ahead of the competition for the most part. 

Tactics will keep you on the hike. But, Strategy will get you to the peak. Not only does a sound strategy provide direction, it also supports and enhances the effectiveness of tactics. Most businesses are good at many tactical activities. That is why they are staying afloat, or even succeeding. But, a few small improvements to strategy will enhance the results of the time, money, and effort they are already spending.