As an entrepreneur, it is critical to assess what internal and external factors influence your business. With this information, you will understand what stimulates growth and what factors contribute to longevity and competitiveness! The most successful business owners and entrepreneurs learn what impacts their businesses and develop concise strategies to adapt to these realities.
FocalPoint Business and Executive Coach of Wauwatosa, Wisconsin, Kerrie Hoffman, goes over six critical driving forces affecting a company’s future spanning from three to five years.
The Six Critical Business Driving Forces
- Product-Driven: a product-driven business is goal-oriented toward creating specific classes of products or services for their niche in the market.
- Market: a market-driven has created sturdy relationships with targeted markets and clients or customers – strategies rely on effectively providing for its target markets and customer base.
- ROI/Profit-Driven: an ROI/Profit-driven business will provide within its area of expertise with the condition that it will obtain a predetermined return. ROI/Profit-driven businesses – such as diverse financial holding companies – eliminate all business activity with no return.
- Size/Growth-Driven: size/growth a business driving force to reach a predetermined size or achieve a specific growth rate. This goal is common and often temporary.
- Technology-Driven: a technology-driven business seeks to create or respond to significant technological changes. Being technology-driven involves investing in a high-risk environment to achieve and maintain marketplace competitiveness.
- Human Resources-Driven: a human resources-driven business such as a law or consulting firm has people as the driving force.
Identifying Competitive Forces
- Competition: where customers can easily switch to purchasing a different company’s products and services
- Customer bargaining power: where customers can influence pricing by purchasing from a more affordable company.
- New entrants: assesses the process of new competitors entering the market where the easier it is, the more difficult it is to maintain market share.
- Supplier bargaining power: the fewer supplies of resources there are, the more power suppliers have in raising their prices.
- New products or services: where customers can easily purchase products and services and influence pricing changes.
The Importance of Identifying Driving Forces
Driving forces indicate the future of products, services, trends, and markets. You will gain insight into the direction of your business and the organization and growth of your departments by identifying your top driving forces.
By assessing all aspects of driving forces in the marketplace, you will be able to identify your company’s unique position and advantages and capitalize on them. Additionally, you will find opportunities to maintain competitiveness by staying ahead of changing trends and demands and overcoming any limitations.
To receive comprehensive strategic planning for your department’s growth, contact the Business and Executive Coach of Wauwatosa, WI, Kerrie Hoffman! Reach her by calling 1-262-290-0650, emailing her at khoffman@focalpointcoaching.com, or taking the Executive Leadership Score assessment!
