ZACH DE GREGORIO, CPA
I am going to capture all of business strategy in one word. That word is… Focus.
When you take all the books, tools, and analysis and boil them down to their core, what they are trying to do is help you to focus. They help you focus your energy, time, and resources on the area where you generate the most value.
Now this sounds simple, but it is incredibly difficult. I will give you an example to show you what I mean. Imagine someone comes up to you and hands you ,000 to do some work. You need to evaluate whether that ,000 is aligned with your focus. If it is not your focus, and you take the money, you are not following your business strategy. Your business strategy is focused on where you generate the most value. And if you are diverting your time and resources away, you are taking those resources away from where you could be generating higher levels of value. Business strategy is about being able to say “no” to things that are outside your focus, and saying “no” is very hard for people.
I am really simplifying this down, but I am not discounting all the other books and resources out there on business strategy. They are all important. I love all of that stuff. I could spend days doing all the excel spreadsheets, and building the diagrams, and doing the exercises. But you should also realize that all that stuff is there to help you identify your area of focus. Where do you generate the most value? If you can identify where you create the most value, and you put your time and resources on those activities, you will generate greater amounts of value, than if you did not focus your time and resources. The goal for society really is to have each person identify where they create value and have each person focus their time and resources on that unique area, and all of society will be better off.
Now some people might say at this point, what about conglomerates? So conglomerates are these massive global companies that have multiple business segments. How is their business strategy focused? If you take a company and grow it to dominate the global market, there comes a point where you can no longer grow in your focus area, so at that point it makes sense to diversify into other business segments, more along the lines of investment management. But most businesses are not in that situation. Most businesses are in the situation where they would benefit from focus.
I discuss two examples of business strategy: time management and deciding to start a new business.
Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.