As a small business owner, there’s nothing more important than having a clear understanding of your company’s scope. After all, without a defined scope, it’s difficult to determine what your business is and what it is not. Without a solid grasp of scope, it’s also tough to know what direction to take your company in. That’s where American Express comes in.
They’ve spent decades working with small businesses, and now they’re ready to share their wisdom on how to create scope for your business. In this post, we’ll offer tips and tricks on how to take American Express‘s advice and apply it to your own company.
1. Start with Your Mission Statement
Before you get too deep into defining your company’s scope, it’s important to start with your mission statement. This statement will guide all of your business decisions and drive your company’s scope. Your mission statement should be the foundation for everything you do. It doesn’t have to be long, but it should be clear and concise. Remember, the mission statement is not just about selling your product, it’s about explaining why your company exists and what it aims to achieve.
2. Define Your Target Market
Once you have your mission statement in place, it’s important to define your target market. Who is your product or service for? What are their needs? What are their pain points? Answering these questions will help you determine who to market to explicitly and who to exclude from your public relations efforts. Remember that being explicit about who your target audience is will help you tailor your sales & marketing initiative, and position your business for success.
3. Conduct a Competitive Analysis
Another essential step in creating scope for your company is conducting a competitive analysis. This analysis will help you understand your market and provide insight into how you can differentiate yourself from the competition. It’s important to assess all of your competitors and understand their strengths, weaknesses and what sets them apart. With a comprehensive understanding of your competition, you can develop a unique selling proposition that differentiates your company from the competition.
4. Identify Your Key Performance Indicators
Key Performance Indicators, or KPIs, are the metrics that matter to your business. These measurements are essential for driving your decision-making process and ensuring your company is on the right track. By identifying your KPIs, you will be able to track your progress and evaluate your business’s success. Some common KPIs include customer acquisition cost, conversion rate, lifetime value, and retention rate. By keeping a pulse on these metrics, you will have a clear understanding of how your company performs and where it needs to improve.
5. Keep Your Scope Fluid
Finally, it’s important to remember that creating scope for your company isn’t a one-and-done process. Your business will grow and change over time, and your scope will need to modify along with it. Keeping your scope fluid will help you adjust your business model to market changes, respond to trends, adapt to new technologies, and stay ahead of the competition.
Creating scope is a crucial part of running a successful small business. By following these tips from American Express, you’ll be able to create a clear understanding of what your company is and what it’s not. You’ll also be able to make more informed decisions based on your company’s mission statement, target market, competitive analysis, KPIs and overall business objectives.
Remember, creating scope is a continuous process, and by keeping your scope flexible, you can stay ahead of the curve and lead your business to long-term success.