Do You Know Your Core Business?

A renewed focus on the core business is more critical than ever as businesses seek to rebuild their competitive advantage. It is also a key strength to have as industries and markets return to growth after pushing past the challenges of the recent economic downturn. 

Having a strong core business will be the foundation for successful expansion as the economy recovers. After all, this is what makes you money – whether it is a product or a service.

Important Things to Ask Yourself
Maybe you have a good idea about your core business and how to define it by a product or service, but you need to dig deeper. Think about how you would answer these questions:

• Is my core business a money maker?
• Does it offer value or something different?
• Am I truly good at it or could I enhance my core business offering?
• Do I truly love what I do?

You’ve Defined It…So, Now What?

If you know the specifics of your core business and you’ve come up with some answers to the above questions, it might be time to make some critical decisions that will determine the scope of your future success.

If you do not believe your core business is making money like it could or if you are not sure if it is actually providing the value and differentiation it should, maybe it is time to reconsider your strategy or redefine your core business. In looking for ways to make changes, many business owners truly struggle because they lack the knowledge and insight to choose the right path for them and their company.

Core Business Strategies

Here are some ideas that might help navigate where to go next:

• Don’t try to be everything to everybody. In the process, you will lose that focus – that core – and end up being not good at a lot of things. Instead, it would be better to really excel at that one core thing that got you to start a business in the first place.
• Look to develop a network of business partners or allies who can provide sound strategic business advice or, in some cases, serve as go-to’s for the clients you may have that may benefit from their core business over your own. These partners will appreciate the referrals and your clients will value your level of concern for their needs over just making money. Taking this tact will also help you better focus on your core business rather than trying to please everyone even if it is outside what defines you.
• Ask others for professional advice about how to enhance core competencies and the capabilities that activate your core business. The most successful people are those who realize that they do not know it all and cannot go it alone. Instead, leveraging the wealth of experience and intelligence of others in the business world can help improve your core business, respond to specific challenges, and take advantage of significant opportunities.   

Your Core Business

Tell us about how you define your core business and what tools you use to ensure that you keep that focus and how you build it on a foundation of shared knowledge or a network of business partners. Or, if you are having a particular problem with defining your business, leave your question below. The Alternative Board can help you grow your business. Please give us a call at 770-633-6078.