The Strategy to Business Startup

By: Andrew Tausz

Tim is looking to start his own Business. He was discussing the idea with Linda, his chess partner, when he realized that strategic planning is essential to the success of this entrepreneurial endeavor.

As the pair played their game, they talked through the idea. Tim came to realize that each chess piece has a basic function similar to the key components of a business.

The Pawns(employees of the business)

Tim knows that no one piece is worth sacrificing the game. However, proper management and positioning of pawns is vital to success.

In a successful business there must be Mutual Respect and Mutual Reliance between employees and management. Employees are the front line and backbone of Tim’s startup.

Tim knows that as employees grow in a business, they have great potential; it is just like when pawns reach the eighth square, they become a Queen.

Can you think of training strategies to position your employees efficiently within your company?

Is there a clear path for growth and advancement to motivate those employees to work hard to reach

goals?

The Knight (Business Advertising)

Tim considered the knight and how its movement is unlike any other piece in the game. Its ability to “jump” around other pieces, he realized, can offer a unique advantage against competition.

Advertising is a way of marketing your product. Marketing Strategy can function fairly independently from other pieces of your business. Some ventures are made successful predominately through the use of successful advertising. Initiating a planned budget for Market Introduction is a key to advertising and boosting a company’s success.

Who is going to use your product?

Where would you find those people?

How do you effectively advertise your company’s product?

How much should be allocated to reach your target demographic?

The Bishops (Operations and Communications)

The Bishop piece is able to move to every corner of the board. Similarly, in business strategy, there are two main types of communication necessary to reach all of the sides of a business’s operations:

Internal Communications in business is often conducted through Human Resources (HR). The primary function of Human Resources is to serve as a liaison between the company needs and employee relationships. Mutual Reliance / Respect is cultured through the HR department with onboarding, training, termination, and scheduling.

External Communications is conducted with any party outside the company that is necessary to run a successful business. Customers, suppliers, governing bodies, investors and shareholders are all examples of External Partners. These relationships can be all the difference between a successful business and one that fails.

The Castles (Supply and Demand)

Tim’s Castle is the foundation on which he is going to build his business. Tim needs to conduct a Supply and Demand analysis in order to speculate whether or not it would be profitable to open a business in a specific market. What Tim hopes is:

The number of buyers for his particular product or service is more than the amount of that product or service offered. This creates a need for Tim’s business. That need of providing those services or goods is what will balance the seesaw of Supply and Demand. This is what causes continuous change in a business’s product and price.

Tim decides to open a restaurant adjacent to an expanding housing development. There are few other restaurants nearby so, potentially, the _________ is greater than the _________ .SupplyDemand

The Queen (Business Management) Tim knew immediately that Business Management is the

Queen of his venture. Management can have the greatest effect of any piece within business operations. In order to successfully conduct business, all of the other pieces need to move in coordination with its management. It is Business Management that adapts to unforeseen events and leads the team to follow Tim’s business mission.

In what ways will your management team coordinate the other aspects of your business?

The King(Business Idea / Dream)

This is the single most important piece of Tim’s business. Tim realized that he needs a clearly defined vision in order to create his business. Obstacles

and missing pieces may be overcome if the dream is preserved.

Strategy Terminology Review:

• Mutual Respect / Mutual Reliance• Can you think of training strategies to position your employees efficiently within your company?• Is there a clear path for growth and advancement to motivate those employees to work hard to

reach goals?• Marketing Strategy

• Who is going to use your product?• Where would you find those people?• How much should be allocated to reach your target demographic?

• Marketing Introduction• How do you effectively advertise your company’s product?

• Internal Communications• Human Resources

• External Communications• External Partners

• Supply and Demand• Is there greater need for goods or services than are available?

• Business Management• In what ways will your management team coordinate the other aspects of your business?

The Strategy to Business Startup

By: Andrew Tausz

Thank you for your time and consideration.