You want to consult a map whenever you go into new territory, otherwise, you’ll lose yourself.

Stepping into the unknown (also known as the “future”) is what companies do every day. The corporations are doing every day to get on with the unknown. And what do they have to do to save them from losing? A strategy, a plan that some might also refer to as a roadmap.

You’ll need a strategy if you want to set new business goals, formulate development strategies, decide your product roadmap, or prepare your investments. It’s easy to realize that your company needs one. It’s a little trickier to actually create a plan.

Here are six simple steps to help you deliver an effective business strategy:

1. Gather the facts

To know where you are going, you must know where you are. You should, therefore, evaluate past performance or the present situation before you start looking forward. Take a look at each business area and find out what went well, what could be better, and what opportunities lie ahead.

Several tools and strategies, including SWOT (Strength, Weakness, Opportunities, and Threats) analysis, have been made available for this method.

Your strengths and weaknesses should be interpreted internally. You should also look at external factors for opportunities and risks.

PESTLE (political, economical, cultural, technological, legal, and environmental) is a good framework for considering external factors. You would wonder, therefore, what risks and opportunities might emerge in every category for your big idea or plan?

This requires the right people to ensure you gather the most relevant information, the most important part of this process.

2. Develop a vision statement

This statement will define the company’s future course and its medium to long-term objectives. The purpose and principles of the organization are defined. Business gurus had long and hard discussions about the first aspect–the vision or statement of purpose. But you could both evolve concurrently in training.

3. Develop a mission statement

It describes the mission of the organization as well as the vision statement but also outlines its primary goals. It focuses on how to accomplish the long-term dream in the short term. So you might wish to answer the question of the dream statement: “Where can we be in five years’ time?”. For the mission statement, you’ll want to ask the questions:

• What do we do?
• How do we do it?
• Whom do we do it for?
• What value do we bring?

4. Identify strategic objectives

The aim is at this point to develop a set of high-level targets for all business sectors. You will identify objectives and advise the plans to ensure that the vision and purpose of the organization are carried out. By taking a look back at your review in step one, you will integrate any established strengths and weaknesses into your goals, especially the PESTLE and SWOT analyses. Clear, observable, attainable, practical, and time-related goals should be central to your objectives. Factors such as KPIs, allocation of resources, and expenditure criteria also must be part of your goals.