Strategic management will guide you in the right direction as your company grows and changes. It is where you will formulate goals and milestones for your business so that you know where you want to be in 1 year, 5 years, and 10 years - and more importantly, how you will get there.
With strategic management, you will consider each area of your business and put together a plan that will ultimately be your roadmap to success - your business plan. This plan will outline where you want to focus your resources, how you want to market and sell your product, and most importantly, what you project your revenue, costs, and profit to be each year. As your business grows and changes so will your business plan, but as long as you regularly check back in with it, it will continue to send you in the right direction.
Without proper money management, it is unlikely that your business will survive for very long. This is where financial management comes in. Proper financial management will ensure that you are making profitable decisions and are able to meet all of your financial obligations.
By organizing your financial transactions and activities, you will compile statements that outline the financial health of your business - how much you are earning and spending, how much you owe, and how much your customers or vendors owe you. More importantly, your financial management will ensure that you manage your cashflow in an optimal way so that you are never in a position where you can’t meet an important financial obligation just because your money is tied up elsewhere. If you plan to work with outside investors or take on business debt, your financial management will be essential to get the business valuation you hope for.
For many companies, marketing is the key that can unlock their success. It is how your customers find out about your brilliant product or unmatched service. It is how you reach new markets and acquire new customers.
Marketing management is where you will make educated decisions on the products you will offer, your pricing plan, how you will promote your product or service, and where that promotion will occur. Market research will be a huge component that will affect each and every decision you make based off of what your customers are looking for, as well as what your competitors are doing. Just as your customers will continue to change, so will your marketing plan. It will require testing, trial and error, and a keen eye for what attracts customers.