Monday Motivational-How important is strategy and planning to my small business?

How important is planning and strategy to my small business?

(Developing a Strategic Plan for 2012)

Strategic Planning is only for the corporate world
not a small business owner like me right?

Strategic planning has the misconception of being time consuming, labor-intensive and intimidating to the small business owner, which makes it an easy task to procrastinate. And even when you do get around to it, having the vision of five years from now tends to be elusive and indefinable as you struggle in the day-to-day scramble of right now. It often-times leaves you wondering-how relevant is this to me and is it even worth it?

It is extremely relevant and critical to the small business even more so in today's economic situation to develop a strategic plan because without it your business may not be able to survive. I once read a blog that stated:

"The one constant in the business world is change. Potential customers change, rules and regulations change, your goals for your business may change and the details of the services and products you offer will need to change to accommodate all of the other changes. If you don't have clear goals in mind for your business and no plans on how to achieve them, your business will not survive those changes."- malindalou.

So often small business owners will have an insight into their business with great intentions and expectations of applying it, but it just falls to the wayside of the "Tyranny of the Urgent." Everything else becomes more critical than the most important things that will move their business forward. This happens because as small business owners, you are too busy working "IN" your business to take time to work "ON" your business,as author Michael Gerber would say. To build a successful business, one that is sustainable, meaning it can run without you, it takes strategic planning.

In our experience there are two types of plans small business owners operate by:

Wing it Plan - Their plan is what they have to do today in order to pay their bills. There is no sense of direction, leaving them feeling overwhelmed and frustrated. Often times they say "I will figure it out when I get there." They are held captive by the events that surround them, rather than controlling the events that happen.

Strategic Plan- This plan differs from a business plan,which some will disagree with me on, in that it is an action oriented plan. It allows you to take action. It lays out strategies to move your business forward. The plan sets measurable goals, goals that mean something to you, to keep you focused and is comprehensive and easy enough to read to keep you on track.

A strategic plan is a written plan that allows you to get out of your head your most precious ideas and make your vision a reality.

There are key elements in a Strategic Plan as we see it, and teach it, that every business owner should know and implement into their business, these key elements implemented individually can be beneficial, but when applied in a cohesive and strategic way can have a tremendous impact on your business:

Lifetime Goal- Where is it that you see yourself beyond the business, what kind of lifestyle do you desire?

UVP (Unique Value Proposition)-What is unique about your business, your differentiator?

Vision of the company- What do you want to accomplish within the business-Where is it going?

Vision & Mission Statement-What do you want to be known for and what is your mission?

BMD (Business Maturity Date)- When would you like your business be able to run without you?Knowing your numbers- What are the financial waypoints the company needs to be hitting?

Strategies to bring in business- How do you plan on increasing revenue-what are your strategies?Objective(s) -What are the goals and objectives you have set for the company?

Action Plan- what actions will you take to achieve each objective in the next 30-90 days?

If you want to get to where you are headed you need to know where you are going. By having a roadmap (Strategic Plan) with a compass and a good needle (Lifetime goal) you can be kept on course to having the business and life you want!

Knowledge is not power. Applied Knowledge (taking action) gets you results. Remember you don't learn by knowing you learn by doing!

To learn more about creating a Strategic Plan:
Register for our Business Leaders Lunch Workshop on this topic.