Forums: Discussions for entrepreneurs and small business.

Hey StartupNation Guys:

I was wondering if you would consider adding a strategy forum. This is really under-addressed [ almost to the point of being entirely unaddressed ] and it`s really important.

I notice a lot of tactical level questions in the forums but without strategy, most tactical plays are just a bag of tricks. Perhaps an explanation of strategy, tactics, execution, etc. I would be happy to write an article or articles.

Sincerely,

CookieMonster

What would be an example of a tactical question you`ve seen on a forum, where the strategy seems to be missing?

I think a strategy section would be appropriate.  But I also do not understand what are tactical level questions without strategy.

Strategy. Game plan with measurable objective[s].
Tactic. Method or partial method of reaching the objective.

Marketing Strategy: Use a free product to attract users who will pay for extras.
Marketing Tactics: Publish press releases, advertise, build web site.
Positioning Strategy: Position between Rolex and Timex.
Positioning Tactics: Photography and copywriting.

How many companies use the above marketing strategy? A lot. How many succeed? Not many. Using the same strategy and tactics as the competition does not lead to sustainable competitive advantage or differentiation. It leads to the sea of similars.

Recently there was a discussion about open source. One participant in the discussion said that "open source gives me a competitive advantage"... so if the competition has access to the same product for free how is any competitive advantage obtained from using an open source product? This sort of statement is really a dangerous misconception because people will read it and assume it`s true. Then someone will try and build a business.

Basically, there are a lot of small businesses that operate as a "bag of tactics" without any thought to strategy. People come to SUN and ask a lot of tactical questions but rarely do I see any strategic planning or evidence thereof. Tactics are great but they don`t lead anywhere and tactics don`t specify measurable objectives. Few days ago there was someone asking about marketing ... as if marketing is just a series of actions to carried out for five minutes each day ... without any real regard to strategy. Sure print business cards, advertise, just like the competition. Why not just call marketing "how to get nowhere fast" because that`s what it amounts to for most people if it`s purely a tactical game. Corporate strategy - same thing. See a business like Geek Squad? Hey try and emulate it ... but do it without any brand equity or name recognition or television adverts. When that fails, come looking here at SUN for more tactics. More advertising, more free promotion techniques. Why not start a blog because surely that will help!

But the core strategy - build a business by copying geek squad and undercutting them - is basically bad, so the endless stream of tactics really won`t work. I sat in a coffee shop the other day and listened to a "geek squad" business owner talk to a marketing consultant and how fliers failed, promotions failed, etc. Well... that`s what happens when it`s all about tactics.

I think a strategy forum would be a fantastic way to educate people about strategy and why it`s important. It would just save so much time and wasted energy if entrepreneurs could pay a little attention to strategy. In fact, now that I think about it, I am rather startled that there isn`t a Strategy forum herein.

There should also - DEFINITELY - be a forum for Copywriting.

My guess is that the "competitive advantage" to using open source is to be able to drop your prices (tactics) ... but then again, competing on price isn`t really a good idea (strategy).

Am I getting this right?

I don`t know about the copywriting forum - I think most of those answers would land in questions in the website and marketing forums.

I think a copywriting forum is a bit hard to implement. I`d rather see something like a bidding option or perhaps simply a service area on the Marketplace for anyone who sells copywriting, to anyone who wants it (assuming they discover they need it).

However, strategic planning is totally missing from many forums about business. Consider a classic topic, here on SuN: "Help me get an investor." That`s a tactic. What`s the business? How is the question geared to remotely interest anyone who happens to read the post and has money?

If you think of strategy as "For what purpose---Why?" then you can think of tactics as "How?"

So suppose someone wants to copy the Geek Squad. The strategic question would be, why; for what purpose? One answer might be something like "because they only repair Windows machines, and don`t ever work on Macs."

The overall competitive strategy is to take on a niche that`s not being covered by Geek Squad. The answer to "Why are you doing this," comes out "Because lots of customers can`t use the service."

But suppose the answer is, "because Geek Squad charges too much and I can do it cheaper." That`s an answer to "How are you going to do this?" "I`m going to do it cheaper.

On the one hand it`s subtle, but on another it`s very clear and obvious, the difference between tactics and strategy. Strategy is the "long view," where tactics are the "short-term overcoming of obstacles."

Strategy is the game plan. Tactics are the specific plays being called at any given moment in the game.

What would the name of the forum be? I`m thinking a good one, even though it`s not done well in corporations, might be "Strategic Planning -- Taking the long view of your business." Maybe?

Hmm....I`m not happy with what I wrote. Here`s why.

One day you wake up and decide you want to be in business for yourself. The "problem" is what global, general ways can you do this? You could invent something and sell it. You could sell someone else`s product. You could teach something (like a consultant), or you could sell a service (like a concierge).

So you`ve solved the problem and come up with a strategic approach to developing and running your own business.

Now, a month goes by. You`ve decided to sell someone else`s products, like being a broker. You have another problem. How do you find products at a cheap enough price that when you re-sell them, you`ll make a profit? That`s a tactical problem. It solves a one-time problem, not a repetitive, long-term problem.

So: What makes "problems" a strategic issue in one context, but a tactical issue in another context? How can the same word have two very different meanings?

Another approach is to understand the difference between a Policy, versus a Procedure. The analog would: strategy is to policy, as tactic is to procedure.

A policy, like a strategy is a recurring solution to a set of circumstances where the specifics change. We have a policy that stealing from the company is a crime.

The procedure for a person who steals paperclips in 1995 is to be shot at dawn. The procedure for a person taking paperclips in 2007 is to launched into another dimension. The technology changes, so the procedure changes. But the overall policy remains the same---to frown upon stealing paperclips.

A strategy is like that---an overall approach to solving a long-term, life problem. A tactic, like a procedure, is the way you solve the "type" of problem, using whatever technology, knowledge, or information becomes available at that time.

Strategy is a specification with measurable objectives. Tactics are actions that lead to completion of said objective. The problem with "bags of tactics" is that tactics should be appropriate for a given strategy and the results of any tactic should be linked to completing the objective.

So strategy is a set of rules that apply to a large objective.
Tactics are the rules that apply to 1 set of actions along the way to the objective.