Strategic Planning For Small Businesses

What is the definition of a Strategic Plan?

A strategic plan is a short concise document intended to keep Small Business Owners and their Managers directed towards meeting the stated long-term objectives of the corporate charter.  Without a strategic plan in place the Owners and Managers of a business, and consequently the professionals responsible for the company’s Corporate Credit Concepts planning, risk becoming so preoccupied with the day to day operations of the business that they lose sight of company’s definitive goals according to Mr. Trent Lee, a Corporate Credit Concepts Advisor. Developing a strategic plan will not guarantee a company’s success, but without one a company is much more likely to fail! A sound strategic plan will address the following needs:

• It provides the basis for more detailed business planning
• It explains the business in a manner that is informative
• It involves and motivates the company’s associates (employees) in the company’s success
• It provides benchmarks and assistance in monitoring the company’s performance
• It stimulates change and is the foundation for the next plan

Reasons to write a Strategic Plan

A foremost reason for writing a strategic plan is to place the visions and passions of the company’s founder(s) into words!  The process of writing a strategic plan is a stimulating exercise. The goals for the written plan are that is should be visionary, conceptual and directional, while being realistic with attainable goals. The process of drafting the plan provides owners, managers and the corporate credit concepts planners the opportunity to plan strategically and act operationally.

The strategic planning process should start with the development of a corporate vision and working from there. This entrenches the company’s vision into how all employees think about the business. The vision becomes a subconscious part of the company’s thought process.

By developing goal and focusing attention on them, these goals to become a subconscious guidelines to the company’s actions. By doing this in a structured strategic planning process your business will be directed in a positive direction and you, (and your managers), will do this without consciously having to think about it.  The results are both rewarding and powerful. Trent Lee states that by drafting this comprehensive company vision and acting upon it, making strategic decisions that are in the best interests of your business becomes a straightforward process.

What is involved in writing a strategic plan?

Any critical review of past performances by company management and the preparation of the strategic plan require the style of thinking described in the previous paragraph.  Essential points to be covered during the review and planning process include:

• Must be realistic, detached and critical in nature
• Must be in writing, not just meeting note or minutes
• Must be reviewed periodically on a regular basis
• Must consider a medium term of 3-5 years
• Must be undertaken by Owners and Corporate Directors
• Must be focused on matters of strategic importance
• Must be complete outside of customary day to day work

What does the strategic plan contain?

To develop a realistic Strategic Plan, the current status of the existing business must be clearly identified, along with its objectives and business strategies. Consulting with your accountant, attorney and corporate credit concepts planner can assist in accessing the current status of the business. The business status should be used as the basis for a critical probe existing or perceived strengths, weaknesses, opportunities and threats. The Strategic Plan should also have the following elements incorporated:

• Vision statement
• Mission statement
• Strategic objectives and themes
• Measures or Key Performance Indicators
• Targets or Goals
• Action Plans

Summary

In summary Mr. Trent Lee advises that while the preparation of a strategic plan is a multi-faceted process; it is not all that difficult to complete and can be done so in a reasonably quick manner. Business Owners who want to take their businesses to the next level, this planning for the future is essential.

Author: Trent and Chad Lee