Yes, Even Entrepreneurs Should Be Strategic (guest blog from Erika Andersen)

I had the chance to “meet” Erika Andersen, author of Being Strategic several months ago. Okay, we didn’t actually meet. We exchanged emails, I wrote a few blogs about her latest book, Erika sent me an autographed copy of the book, and so on. I’ve read plenty of books, articles, etc. on the topic of strategy. Being Strategic provides the clearest explanation of this topic, in my opinion.

I recently asked Erika is she would be interested in being a guest writer for the CQ blog. I’m thrilled that she obliged. Her blog is featured below. Of course, you can catch Erika’s writing on her blog too. Enjoy!

Author: Erika Andersen

Recently, I had the honor of speaking at the Inc 500 conference in DC. It was a great session – a big room full of entrepreneurs all focused (really focused – I was impressed) on how to be more strategic about their businesses. Afterwards I was signing books, and one guy asked me whether this skill set and mindset of being strategic was really important for entrepreneurs, especially those who are just starting their companies. (I could tell he thought it wasn’t important and that his question was just a semi-polite way of voicing that opinion!)

So I asked him how he would define being strategic. And he said, “Oh you know, all that competitive and industry analysis stuff – what is it? The five forces model? Isn’t that only applicable to big, complex companies?”

And then I agreed that, yes, if you define being strategic that way, it’s probably not that useful for most entrepreneurs…especially the brand new ones: starting a software company in their garage or a baby boutique in a downtown storefront. But I define being strategic very differently – I see it as a set of mental skills that help you achieve your dreams – whatever they may be – in an organized way. The definition I offered him (and that I propose in my book) for being strategic is this: consistently focusing on the core directional choices that will best move you toward your hoped-for future.

Most entrepreneurs have a “hoped-for future” – it’s why they’re entrepreneurs; they’re passionate about building some kind of a ‘better mousetrap.’

But in order to know which “core directional choices” will best take you to that future about which you’re so passionate, you also have to be very clear about where you are now – and that’s something a lot of entrepreneurs aren’t that good at: they look at their current state with a mix of wishful thinking and selective vision!

So one key strategic skill for entrepreneurs is to be able to look at where they’re starting from - their strengths and weaknesses, assets and liabilities, and the circumstances around them that might support or impeded their success. I encourage people to learn to be “fair witnesses”; to look at their own situation as neutrally and objectively as possible. If you’re not accurate about where you’re stating from, it’s hard to know how to get where you’re going: if you’re traveling to New York and you think you’re starting from Philadelphia but you’re actually in Miami – you’re in big trouble!

And once you’re clear on “what is” – your true starting point — then you have to be able to make and stick to those “core directional choices,” or strategies. This is tough for entrepreneurs: it’s all too easy to make an important choice about how you’re going to build your business, and then abandon it when the going gets rough. For instance, when I was first starting my consulting company, almost 20 years ago, we made the decision to target primarily large and high-growth companies. We felt that we could build long-term relationships with them, of mutual benefit to us both, because they would continue to have need of our services over a long period, and would have the capacity (and budgets) to use us. In the early years, it was tempting to move away from that “core directional choice” and go for the local, small, quick-hit clients. But we stuck to our strategy, and have built a wonderful client list – with many client relationships lasting 10 to 15 years.

This is just part of the conversation I had with the guy at the Inc 500 conference who didn’t believe in strategy for entrepreneurs. I don’t know if I convinced him — but he did buy a book and have me sign it…