business strategy

Core business processes are the essential activities that drive an organization’s success by ensuring smooth operations and consistent value delivery. This article explores four fundamental business processes—Sales and Marketing, Product Development and Innovation, Operations and Supply Chain Management, and Finance and Accounting—detailing how each contributes to growth, efficiency, and long-term sustainability.

Owner’s draw, also known as owner’s withdrawal or distributions, refers to the funds that business owners withdraw from their business for personal use. How the owner’s draw is taxed depends on the legal structure of the business… 1. Sole Proprietorship and Partnerships Pass-Through Taxation –  In sole proprietorships and partnerships, business income and losses pass through to the owners’ tax returns. Taxation of Drawings –  The owner’s draw is not taxed as a separate entity

The three pillars of strategy execution are essential components that organizations rely on to successfully implement their strategic plans and achieve their long-term goals. These pillars provide a framework for translating strategic objectives into actionable initiatives and ensuring alignment throughout the organization. The three pillars are… 1. Strategy Formulation Strategic Planning –  This pillar involves the development of the organization’s strategic vision, mission,

Writing a simple business strategy involves outlining key elements of your business plan concisely and clearly. Here’s a step-by-step guide to help you craft a simple yet effective business strategy… 1. Define Your Vision and Mission Vision Statement –  Describe your long-term vision for the business, including what you aim to achieve and the impact you want to make in the industry or community. Mission Statement –  Articulate the purpose of your business, outlining its core

Writing a good strategy plan involves careful analysis, thoughtful planning, and clear communication of key elements. Here’s a step-by-step guide to help you write a comprehensive and effective strategy plan… 1. Conduct a Situation Analysis SWOT Analysis –  Assess the organization’s strengths, weaknesses, opportunities, and threats to understand its internal capabilities and external environment. PESTLE Analysis –  Analyze political, economic, social, technological, legal, an

A well-written business plan should address key questions that provide a comprehensive understanding of the business and its potential for success. While the specific questions may vary depending on the nature of the business and its audience. Here are four fundamental questions that a business plan should typically answer… 1. What is the Business Opportunity? Description of Business –  Provide a clear and concise overview of the business, including its products or services,

The type of business structure that pays the least taxes depends on various factors, including the business’s income, expenses, ownership structure, and tax planning strategies. Here are a few business structures that may have lower tax liabilities under certain circumstances… 1. Pass-Through Entities Limited Liability Company (LLC) –  By default, LLCs are taxed as pass-through entities, meaning that profits and losses pass through to the owners’ tax returns. This avoids doub

The three primary business strategies are differentiation, cost leadership, and focus. These strategies, originally proposed by Michael Porter in his seminal work “Competitive Strategy,” outline different approaches that businesses can adopt to gain a competitive advantage and succeed in the marketplace. Here’s an overview of each strategy… 1. Differentiation Strategy Description – The differentiation strategy involves offering unique products or services that are perceived

A good strategy is a comprehensive and coherent plan of action that guides an organization toward achieving its objectives and fulfilling its mission in a dynamic and competitive environment. While the specifics of a good strategy can vary depending on the organization’s industry, goals, and circumstances, several key characteristics typically define a strong and effective strategy. 1. Clear Vision and Objectives Visionary Leadership –  A good strategy begins with a clear and

Businesses can be categorized into various types based on their legal structure, industry, ownership, and operational characteristics. Here are three common types of businesses… 1. Sole Proprietorship Description –  A sole proprietorship is the simplest form of business structure, owned and operated by a single individual. The owner has full control and responsibility for the business, including decision-making, management, and profits. Legal Status –  Sole proprietorships ar

Yes, generally, you are required to pay taxes on income earned from your side hustle. Income generated from any source, including side businesses, freelance work, or independent contracting, is subject to taxation by the government. Here are some key points to consider regarding taxes on side hustle income… 1. Self-Employment Taxes If your side hustle income exceeds a certain threshold, you may be subject to self-employment taxes, which cover Social Security and Medicare cont

The four basic business questions, often referred to as the fundamental questions of business, are fundamental inquiries that guide strategic planning, decision-making, and operational activities within an organization. These questions help clarify the purpose, direction, and priorities of a business. Here are the four basic interchange questions… 1. What is the Mission? Description –  The mission of a business articulates its purpose, core values, and long-term aspirations.

The “Three C’s” of a business plan refer to three critical elements that are essential for creating a comprehensive and effective business plan. These elements help guide strategic planning, decision-making, and communication within the organization. The Three C’s are as follows… 1. Clarity Description –  Clarity refers to the clarity of vision, goals, strategies, and key elements of the business plan. A well-defined business plan should clearly articulate the purpose, object

In Kansas, the requirement for obtaining a business license can vary depending on the type of business you operate, your location, and the specific activities you engage in. While Kansas does not have a general state-level business license requirement, certain cities or counties may have their licensing requirements for businesses operating within their jurisdiction. Here are some key points to consider regarding business licensing in Kansas… City and County Regulations –  Ma

A good strategy statement succinctly communicates the direction, focus, and objectives of an organization’s strategic plan. It should capture the essence of the organization’s strategy clearly and compellingly, guiding decision-making, resource allocation, and execution efforts across the company. Here are the key characteristics of a good strategy statement… Clear and Concise The strategy statement should be concise and easy to understand, avoiding jargon or overly complex l

Deciding when to start paying yourself for your business depends on various factors, including the financial health of your business, your personal financial needs, and your long-term goals. Here are some considerations to help you determine when to start paying yourself for your business… Business Viability Before paying yourself, ensure that your business is generating sufficient revenue and profitability to support regular salary or owner’s draw payments without jeopardizi

The Strategy Diamond is a framework developed by Donald Hambrick and James Fredrickson that helps organizations analyze and understand their strategy by examining five key elements, represented as facets of a diamond. The Strategy Diamond provides a holistic view of strategy and helps align different aspects of the organization’s strategy to create coherence and effectiveness. The five facets of the Strategy Diamond are… Arenas Arenas represent where the organization chooses

The threshold for what constitutes a business can vary depending on various factors, including legal, regulatory, and practical considerations. There isn’t a specific income threshold that universally defines when an activity transitions from a hobby or side venture to a formal business. Here are some general guidelines to consider… Intent and Effort One key factor in determining whether an activity qualifies as a business is the intent and effort put into it. If you are acti

The seven key components of a comprehensive business plan typically include… Executive Summary A concise overview of the business plan, summarizing the key points and objectives of the business, including its mission statement, products or services, target market, competitive advantages, and financial projections. Business Description Detailed information about the nature of the business, its history, legal structure (e.g., LLC, corporation, partnership), ownership, location,

The six principal components of business strategies are often summarized using the acronym “SWOT,” which stands for Strengths, Weaknesses, Opportunities, and Threats. These components are essential for assessing internal and external factors that can influence the success of a business. Here’s a brief overview of each component… Strengths Strengths are internal factors that give a business a competitive advantage or unique capabilities. These can include factors such as a str