STRATEGIC PLANNING
Let’s review a few key factors on Strategic Planning that help small business owners determine the value of this process.
- WHAT IS IT?
- A planning tool for management to formulate high-level business strategy.
- Strategic Planning provides the foundation for the development of a more detailed Business Plan.
- Strategic Planning is top down: Strategic – Tactical – Operational.
- WHY DO STRATEGIC PLANNING?
- To define the precise mission of the firm.
- To measure the competitive environment.
- To prioritize external opportunities and assess potential threats.
- To help manage growth.
- To focus on key objectives.
- To satisfy succession planning needs.
- To focus on internal strengths and overcome weaknesses.
- To formulate strategy to maintain a competitive position.
- WHEN TO DO STRATEGIC PLANNING
- When the business needs to establish guidelines for a new or updating of a Business Plan.
- When a review is needed to maximize resource utilization.
- When the business needs to prioritize growth options.
4. What are the goals for Strategic Planning
- Quantify objectives for the business.
- Establish indicators of achievement.
- Develop an implementation plan.
- Assign responsibilities and accountability.
- Identify resource requirement for plan achievement – financial, personnel, equipment, facility, products.
Simply put, strategic planning determines where an organization is going over the next year or more, how it's going to get there and how it'll know if it got there or not. From how to start a small business to making it big.
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