Starting a new business is like trying to navigate a never-ending maze. You have to make a lot of decisions, and sometimes you don't even know what the right path is. But one thing is for sure, you need a plan and a strategy to make it out alive.
A plan is like a map for your startup journey. It's like the instruction manual that comes with IKEA furniture, it tells you step by step what to do and in what order. A plan is a detailed course of action for achieving a specific goal or objective. It outlines the steps that need to be taken, the resources required, and the timeline for completion.
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On the other hand, a strategy is like a compass for your startup. It's the GPS that guides you to your destination. A strategy is a broader approach for achieving long-term success. It involves making choices and allocating resources to achieve a desired outcome.
According to a Harvard Business Review article by Michael Porter, "Strategy is about making choices, trade-offs; it's about deliberately choosing to be different." In other words, a strategy is about making conscious decisions about how to differentiate yourself from your competition in order to achieve a sustainable competitive advantage.
Now, let's put it in a startup context. Let's say you want to start a new bakery business. Your plan would be to open a physical store, buy the necessary equipment, hire staff, and start baking delicious treats. But, your strategy would be to differentiate yourself from the competition by offering organic and gluten-free options. By implementing this strategy, you'll attract a different kind of customer and stand out from the other bakeries in the area.
It's like the difference between having a roadmap for a road trip and having a map of the entire country. A roadmap is great for getting from point A to point B, but a map of the entire country gives you a better understanding of where you are and where you can go.
Starting a business is like trying to cook a three-course meal for a dinner party. You need a recipe (plan) to make sure you don't burn the steak and overcook the vegetables. But, you also need a menu (strategy) to make sure you have a balance of flavors and a variety of dishes to please all your guests.
In conclusion, a plan is a detailed course of action for achieving a specific goal or objective, while a strategy is a broader approach for achieving long-term success. A plan is important for executing a strategy, but it is not a strategy in and of itself. To be successful, startups must have both a plan and a strategy in place.
Sources:
Porter, Michael E. "What Is Strategy?" Harvard Business Review, November-December 1996, https://hbr.org/1996/11/what-is-strategy
Recommendations:
Startups should develop a clear strategy that outlines their approach for achieving long-term success
A plan should be developed to execute the strategy, outlining the specific actions that need to be taken to achieve the goals and objectives outlined in the strategy.
Regularly review and adjust the strategy and plan as needed to ensure they remain aligned with the startup's overall goals and objectives.
Clear Communication is essential, making sure that everyone in the startup understands and buys into the strategy and plan.
And most importantly, don't forget to add a pinch of humor to the mix, it makes the journey a lot more enjoyable.