The FT Essential Guide to Writing a Business Plan, 3rd Edition

Strategy

There are myriad definitions of strategy, ranging from that of General Sun Tzu, ‘Know your opponent,’ in the sixth century BC, to Kenichi Ohmae’s rather more recent interpretation, ‘In a word, competitive advantage.’

I am an economist, so I believe that we should bring the word ‘resources’ into the definition. Just as economics can be defined as the optimal allocation of a nation’s scarce resources, so we can define a company’s strategy thus:

‘Strategy is how a company deploys its scarce resources to gain a sustainable advantage over the competition.’

What your backer needs to know is how you plan to allocate your company’s resources over the business plan period to meet your goals. These resources are, essentially, your assets – your ...