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What is a Strategic Plan and Why Planning is So Important for Small and Home Businesses?
Have you done your strategic planning for your small business or home business? What's that? You say strategic planning is only for larger businesses with big time staff members like CEO's CFO's VP's and other such initials? You couldn't be more mistaken. How can you tell your business is on track if you haven't done your strategic planning? Let's back it up a bit and take first things first. What is Strategic Planning? Strategic planning is a process whereby you dissect your business to determine its strengths and weaknesses. During this process you set your company's goals, objectives and mission statement. In other words, it's a soul-searching exercise for your business. While you're in the midst of your strategic planning (company soul searching) you should be able to answer the following questions: Why does my company exist? Why are you in business? Are you in business because there is a need and you're filling the void? Are you in business because your hobby has grown to a whole new level and its time to make it a legitimate business? Are you in business because you need to make extra money? Look honestly at this question. Is your answer to satisfy a self-centered need or to provide a service for the community? (Hint, self-centered businesses don't last very long.) What does my business do? Outline your core business. Writing down your core business will keep you and your employees from getting sidetracked. If your core business is writing speeches, then write speeches. Spending your time writing resumes takes away from your core business. If your business strays from the core and starts to falter always go back to your strategic planning to see how far you've veered from 'what your business does'. If you truly decide to take your business in a different direction, then you need to re address our strategic plan. How does my business do what it does? This is your small business' or home business' philosophy. Is your business philosophy to do what you do faster, more accurately, cheaper or with more sophistication and integrity than your competitors? This is a question to ponder. Once How do I measure my business' success? How do you know if you're on target? You must establish a quantification of your success. Increasing your customer base by 15% each year is a goal you can measure. You need to come up with a unit of measure that works for your business. Once you've come up with your unit of measure, review your progress regularly. Why come up with a strategic plan? Your business' strategic plan will become your company's blueprint, or instruction manual so to speak. As your business grows and you are faced with difficult decisions, take a look at what you developed and written down during your strategic planning stage. It will serve to remind you and your employees of the company's core values and mission. It will help to redirect your energy and the energy of your employees when faced with tough decisions. When should you to create a strategic plan? It's easy to get bogged down in the day-to-day operations of your home/small business. Once you're up and running and meeting your client's demands, it gets more and more difficult to take the time to go through the business soul searching.
It's best to do strategic planning early in the life of your business. However, if you have been up and running for a while and have not come up with a strategic plan, don't despair. Pull yourself away from your daily obligations and take time to strategically plan your business. With time at a premium, it is better to work smarter than harder. A well thought out strategic plan will help you to work more efficiently rather than harder. Additionally, a strategic plan is a philosophy to share with your employees. If they are aware of the mission statement when they are hired, you won't have to break them out of bad habits. For more information on strategic planning, visit the Small Business Administration's website.
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Tidbits & Stuff was born on Thursday, March 9, 2006
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you've come up with your company's philosophy or mission statement, make it well known to all who works for you. If you're true to your mission statement, your clients will see the fruits of your effort.
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