How can a strategic business plan help your company succeed?
A Strategic Business Plan is Your Business’ Foundation
No matter what challenges and opportunities your business experiences over the years, having a detailed, methodical business strategy with attainable benchmarks is what separates a financially sound business from one that operates recklessly. Your plan defines the direction of your company. It is what the leaders of your company will use to prepare for problems, gain the foresight to take advantage of new opportunities, and handle growth.
If your established business has outgrown your current strategic plan—or worse, if you don’t have one—GJR Consulting will help you navigate the strategic planning process from start to finish. In this post we cover the major parts of a strategic business plan, why your business needs one, and exactly how we can help you set and achieve your business goals.
The Elements of a Strategic Business Plan
There are seven essential elements of a business plan. They aren’t necessarily a sales pitch to obtain funding; this kind of plan uses high-level thinking to guide the next 3, 5, or 10 years. It is a working document that grows and evolves with your business.
Executive summary: The overall outline of the business plan generally describes the business concept, important financial points, major milestones, your current business position, and a clear statement of purpose.
Mission statement: This is what you’re trying to achieve. It should be a more defined goal than “higher profits” or “dominate the market.” The mission statement is a specific set of guidelines and milestones to aim for in the coming years.
Organization description: This is essentially an “elevator pitch” that describes what your business does. This is a clear and concise articulation of what you do and the industry you are in.
Competitive strengths: This is a list of all the key assets and skills your business possesses. These are the advantages that make your business unique and give you a leg up on the competition.
Target market and industry analysis: When you identify your target customer, you begin to define your marketing strategy. This also tells you if your market is growing or shrinking and how best to attract the customers you want.
Key performance indicators: Well-run organizations understand their metrics and KPIs. This part of the strategy identifies and defines what metrics your organization will use as a measure of growth and success.
Financial projections: These are financial models that forecast the potential results for each business unit. You’ll know how many new customers you will need to reach these projections and what prices to charge to get there.
An effective strategic business plan is a working document that grows and evolves with your business.
Why You Need a Strategic Business Plan
Define an Organizational Focus
All businesses benefit from having a clear roadmap that guides decision making across the entire organization. Besides preparing you for opportunities, a strategic plan helps anticipate problems before they happen and allows you to take steps to avoid them.
Be More Efficient
Your resources are limited no matter how large or profitable your business is. When you have clearly defined objectives, you can dedicate these limited resources in the most effective way possible to achieve the desired outcome.
Understand the Competition
The business landscape is constantly changing. When you can identify your direct and indirect competitors and understand what they are doing to improve their market share, you can be quicker to respond.
Align Employee Goals
An enterprise-wide strategy also influences decision making and morale at different employee levels. It ensures everyone is on the same page instead of working at cross purposes.
Establish Stability
Businesses are constantly changing. Well-established plans may be put aside and even permanently forgotten. Ideas and changes that used to excite the company may no longer be feasible. A high-level strategic plan provides the solid foundation your organization needs to remain rooted and focused on the future.
Unlock Your Business’s Full Potential With GJR Consulting
Don’t let a lack of preparation be the reason you don’t succeed. Business owners need to make sure their short-term goals for productivity align with a long-term vision—from their mission statement to their unique product. Reach out to our team today and put your future in the right hands.