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The Importance of Strategic Focus When Opportunities Exceed Capacity and Capability

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Birds eye picture of business people standing in a circle.Clarity on who a business’s target customers are, their value proposition and their unique key capabilities are the foundations for business success and are especially crucial when facing capacity and capability constraints.

A challenge facing many West Australian businesses this year is that current market conditions are presenting many more opportunities than there is the capability and capacity to take advantage of these opportunities.  Constraints such as retaining and finding staff, and sourcing equipment and supplies are commonplace across many industries.  See below a table that shows where;

  • Opportunities are strong and weak in the economy; and
  • There are forces that will either strengthen or weaken a business’ capability and capacity

Opportunities vs Capability & Capacity Constraints

Table that explains opportunities versus capability and capacity constraints.

3 Questions Business Owners Should Consider

What becomes important in this scenario is a business’s ability to focus on their strategic ‘sweet spot’ and to pursue the right opportunities in this context.  Business owners need to consider:

  • Where will you play i.e. who is your target customer?
  • How will you win in the market where you will play i.e. what is your value proposition?
  • What are the unique capabilities you require that will allow you to win i.e. what key processes, resources and alliance partners are required to win?

Businesses that are not clear on the answers to these questions focus on activities outside of their ‘sweet spot’ which inevitably leads to waste.  Instead of focusing on high payoff activities that support their value proposition, they engage in wasteful undertakings that can be costly to the business.  And in an environment of constraint, could lead to a business pursuing opportunity which will yield lower profits.

These important strategic questions are what business owners should continue to answer every month, quarter, and year, especially in the current environment.

Holistic Approach to Business Finance

At Ledge, we take a holistic approach to finance, looking at the entire business to provide a solution that is best suited to its needs. We work closely with a number of strategic partners who provide their insight into different parts of what it means to maintain a successful business.

After having this holistic mindset over the past 40 years it is now ingrained into everything we do. We partner with businesses for the long run, providing them with guidance, support and the capability to grow and be successful.

One of our strategic partners who we work closely with conducts the following framework for success, which we agree is a great way to ensure a business takes everything into consideration and has the opportunity to grow.

Framework for Success

A table outlining a framework for success including goals, financial control, strategic plan and execute.

In the current market, it’s so important to make the most of every business opportunity and look at several factors when assessing how your business is tracking. If this blog has sparked any questions, speak to your Ledge Finance Executive directly, or call our offices on (08) 6318 2777 or email secure@ledge.com.au and we will be in touch.


Please note the information provided here is general in nature and does not constitute financial, tax or other professional advice. You should consider whether the information is appropriate for your needs and seek professional advice prior to making any decisions.


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