Category: Growups

Refocusing your strategy

As I discussed in my previous post, when companies grow they tend to lose strategic focus. This happens as they change their business model over time to find more effective ways of doing business, and as they tactically chase revenue from the customers they manage to get. The way out to get out of this quagmire is by taking three steps:

Losing strategic focus

When companies are founded, there is normally a single vision that identifies the purpose of the company. A powerful market need. A set of target customers. A compelling value proposition. Things look beautiful on paper.

However, as founders quickly discover, no plan survives contact with reality. Once they start interacting with the market by selling to a few customers here and there, they begin adding requested features, making changes to their value proposition, and adjusting their business model to fit circumstances they encounter.