long-term strategies of their businesses. In a 2018 Constant Contact survey of1,005 small business owners, 63% said they plan only a year (or less) in advance. If you're one of these small business owners, it's not too late to think differently. Your future success depends on effective strategic planning. It's a process of looking ahead that should involve your entire business, and the discussions can lead to meaningful changes in your business. Strategic planning consists of analyzing the business and setting realistic goals and objectives. For your employees, the process can foster an increase in productivity—contributing to the success of the business.
The U.S. Small Business Administration recommends that the strategic planning process be a flexible one. When you meet with your employees and any people outside of the company, remember that the discussions should encourage new ideas and thoughts.
Let’s look at the steps in the steps in the strategic planning process in more detail for the business owners.
1. Assess Industry, Competitor & Customer Trends
How big is the industry? How quick is it growing? Who are the key competitors? How well funded are they? What moves are they making? What are pricing trends? What products or services are your customers asking for? Any macro-economic trends at play? Any government regulation issues? You cannot set an effective plan for your business unless you truly understand what you are up against from an industry and competition perspective. Think about this as an "external" evaluation of overall market trends that impact your business.
2. Complete a SWOT Analysis on Your Business
Strengths in your staff, customer base, market position, financial resources, sales channels, products, profitability, growth, etc. Weaknesses in your staff, market position, margins, financial resources, competitive vulnerability, missing products, customer complaints, missing sales channels, etc. Opportunities to enter complimentary markets, form alliances, raise funds, launch new products, pursue M&A activity, exploit customer weaknesses, etc. Threats to the economy, losing key staff, lack of financial resources, limited cash flow, disintermediation, falling prices, etc. Think about this as an "internal" evaluation of your business. Link to Business SWOT Template.
3. Define Your Mission and Vision If you need additional help in this area, please reach out.
4. Define Your Corporate Business Goals
Your goals are the specific outcomes you are trying to achieve. This could include things like changes to product offering, sales& marketing strategies, financial resources, operational efficiency, employee culture, financial targets and beyond. What high level things need to happen to make your vision a reality.
5. Drill Down to Department Level Objectives
This is typically done department-by-department within the company--setting specific objectives for the product team, sales &marketing, operations, technology, finance and human resources. You should limit all department-level goals to the handful of items that the department can rally around in any one year. And, these objectives needs to be made SMART as well.
6. Determine Staffing, Budget and Financing Needs
Once all the departmental needs have been defined and quantified, now you are able to aggregate them up into one centralized corporate plan, organizational structure and budget.
A business strategic plan worksheet is available in the Freebie Section.
If you have questions, or need any assistance, contact us. You can also call us @ 904-830-0737. You can also set up a free consultation to discuss ways we can help you.
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