Do I Need to Create a Strategic Plan For My Small Business?
Do I Need to Create a Strategic Plan For My Small Business
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Many small business owners assume that the process of strategic planning is only for large businesses that are able to allocate time and personnel for such an endeavor. This is not the case. Many small businesses are competing in markets filled with small and large companies. Therefore strategic planning is a major element to the success of any businesses regardless of size.
What is Strategic Planning?
Strategic planning allows you to develop a strategy that your business will follow for years to come. It may be general or only focused on a specific area of your business like planning a marketing strategy or financial budgeting. Depending on your industry and the nature of your business, you may need to use different time periods for your strategic plan for instance a two, five or ten year plan. For businesses that operate in an industry that is constantly changing like e-commerce and technology, the planning period may be much shorter.
Your strategy needs to list your business goals and how you plan to achieve them. If you have employees, they should be involved in the process. Your strategic plan also needs to be revised and revisited at different intervals which is related to your specific industry.
Basic Components of a Strategic Plan
Although there are not set formats for a strategic plan there are some basic ones which include:
Purpose - Here you explain the purpose of your business
Goals - This is the ultimate goal or objective of your business and where all of your efforts will be targeted.
Strategies - Your strategy is the approach that you will take to accomplish your goals.
Action Plans - These are the activities you need to carry out your strategy.
Monitoring Plan - You need to list how exactly you will monitor the activities and measure the results of your strategic plan.
Your strategic plan does not have to be as formal or as lengthy as one that would be created for larger organizations. It can be just a few pages long. What is important is that you have a written plan that can be read by others. You can even discuss your plan with your partner, accountant or a trusted consultant to get feedback. It will help bring more clarify and focus on issues that could affect your business. It provides a road map to prepare for unexpected events that could possibly hinder your business operations. A strategic plan helps you prepare ahead of time so that you are equipped to handle different situations your business may encounter.