Business Strategies

Businesses should construct a big picture scale strategy where the ultimate goal for the business is well-defined. For any generic strategy it is important to analyze the strengths, weaknesses, opportunities, and threats (SWOT) that would result by implementing the chosen strategy. The Chandler Source puts our experience in a wide range of verticals to use when developing business strategies for our clients. 

If the end-game is growth, a well-crafted growth strategy is essential. Growth strategies are appropriate when a business is doing well yet sales are static. 

Ultimately, business growth is understood to be an increase in profitability. Business growth can be accomplished by boosting revenue or reducing expenses. Despite its simple definition, business growth is not easy. A business must be scalable in order to grow successfully, that is it must maintain or improve profit margins as demand increases. 

The Chandler Source empowers our small business clients to expand successfully with customized growth strategy plans that we design for scale and sustainability.

The key to growth (and success) is differentiation. Companies that offer products or services that are unique or that feature additional options that are not offered by competitors have leverage when setting market prices. This is effective because customers perceive value when product offerings are exclusive, rare, exceptional, or different, and they are willing to pay a premium for those products or services. 

There are several different ways to differentiate yourself in a crowded field. 

1. Be First to Market – If your product was on the market first, that means that competitors had to copy you. First is often perceived as “best,” so customers will tend to be loyal to companies that bring their product to market before the competition. 
2. Uniqueness – Products that offer a unique characteristic or distinctive feature can become known for that unique attribute. Once that unique attribute is accepted by customers as valuable, the competition can no longer offer that same attribute with the same level of differentiation. 
3. Leadership – Brand leadership is a way to set your company or product apart from the competition. Leadership may be attained through being the best selling in its category, being preferred by customers, through technological advantage, superior performance, or outstanding service. 
4. Heritage – This method of marketing differentiation makes customers feel reassured and secure about the long history behind the company or product. 
5. Market specialty – This differentiation strategy occurs when the business is focused on a specific activity or product. Customers perceive these companies as experts because they are specialists in a particular area.
6. Consumer preference – This strategy takes advantage of the tendency for people to follow the herd. When customers do not know what they want, they follow the most popular choice. 

Businesses must decide how to price their products or services so that customers will choose those products/services over the competition. The two main ways of achieving a competitive advantage is to increase profits by reducing costs, while charging industry-average prices, or to increase market share by charging lower prices, while still making a reasonable profit because the costs are reduced. The Chandler Source can help you choose the proper pricing strategy for your business. 

When a business is not intended for perpetuity, eventual sale, dissolution, liquidation, or merger plans should be well-defined. There are advantages and disadvantages to each exit strategy scenario. The Chandler Source will help you choose the best option.

The most common exit strategy is to sell the business. Profitable businesses will be attractive to buyers and will sell quickly but will also need to be valuated appropriately. The Chandler Source brings seasoned financial accounting experience and education to our clients by valuing their business in accordance with GAAP (Generally Accepted Accounting Principles) for proper transparency during the sale of the business.

Companies that seek to expand a product or service line or that find synergies from complementary business activities, or simply want to eliminate competition, may be the ideal M&A (merger and acquisition) candidate. The Chandler Source helps our clients achieve smooth transition during mergers where organizational change management is required to maintain cohesiveness within the company culture. 

In some cases, liquidation is an exit strategy for small businesses. The Chandler Source utilizes our tax experts to help clients navigate through the tax effect of selling off company assets and closing shop. 

Whichever phase your business is in – startup, growth, maturity, or decline –  The Chandler Source can help you gain strategic direction. Take advantage of our industry experience, education, and practical know-how to establish and implement the strategy that you need to get your business off of the ground, scale, sustain, and exit successfully. To begin your strategic planning, call The Chandler Source today at (631) 659-2929 or email us at Susan@ChandlerSource.com.