Strategy: Every Business Needs One

Write Strategic Plan

A strategy plan is more, and different, from building a business plan.

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To write strategic plan for your small business, and when planning strategy, you need to consider many internal and external factors; you also need to consider the definition business model for your business, within your industry.

The very first piece of advice I usually give new business startups is: Write Strategic Plan! Why? Because, at least, it focuses the new business owner on their strategic planning process. And, at best, it helps small business owners to develop a sustainable business model through great strategies (and it helps to define the business model you want for your business).

Write Strategic Plan

A good strategic plan is typically a very focused document that addresses the company’s longer term vision (known as a vision statement) and direction - the road map; and a good small business plan to address how to get there (often detailed in shorter terms, year by year).

Strategic plans, business plans, business models and business cases, small business marketing plans, are not interchangeable - they are all different but related.

I believe in strategic planning. When you invest the time (and thinking) in planning your strategy, you understand your business better. However, at minimum do a simple business plan.

Recognize that at some point in your business' future, you will need to do a comprehensive strategic plan.

Building a clear and direct business road map is necessary to building a strong performing business – whether that business is small, medium or large.

Planning this road map requires asking and answering questions that will determine the direction of the business and that will build decisions into directions to lead you where you want to go.

Building Your Strategy

For example, ask yourself

• What types of markets to target?

• How to successfully grow your market (using some pretty specific market strategies)?

• What types of customers to target?

• What your geographical reach or area is; or should be?

• What types (or features and benefits) of services or products (consider your marketing mix product strategies in your decision making process) to offer?

• Is it time to consider the advantages of diversification; from a market, industry, global, product, and/or services perspective?

• Is it time to assess your product strategy?

• What are your company’s strengths and weaknesses (internal)?

• What are your company’s opportunities and threats (external)? Follow a sample SWOT analysis to develop your own SWOT and to answer both the internal and external questions.

• Who are your competitors (do some competitive intelligence)? And what is your competitive strategy?

• What are your industry's key success factors (do an industry analysis)?

• How does your business compare to your competition in a value chain analysis?

• What type of skills, equipment and technology are required in your industry (build a strong business operations plan)?

• And then ask yourself if your small business strategy (using a 5 Forces Model) should focus on a niche, a low cost provider, high cost and high service, or a diversified strategic approach?

When you've answered those basic questions, and other more specific questions related to your own business and your industry, then you can begin to map out the results or answers to build, and to write, strategic plan.

My best, most focused and successful strategic plans come out of using a customized plan checklist.

Develop your own checklist that best fits your business or adapt the strategic plan checklist that you can find on this website. A checklist approach will help you to focus on what needs to be done.

The type of tactical planning you will complete as you are strategizing is important because it forces you to make difficult choices and difficult decisions (make sure you understand the definition business model to engage in a strong and successful strategic planning process). Also write down your choices and decisions to plan the actions necessary to move forward (use this action item example as a model for your own action plan).

The action plan is your road map. You must ensure that you are managing the direction you take.

Once you begin this strategic planning process you will need to ensure that the plan you develop is do-able; make sure you include effectiveness measures - measure business performance in your plan.

And remember that your plan for strategy in business needs to be reviewed on a regular basis and be adapted as market and economic conditions change.

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