Strategic planning is often seen by small business owners as a task that is reserved purely for larger businesses. However, businesses of any size can benefit greatly from strategic business planning.
“In order for a business to be successful there needs to be a roadmap for success. A strategic plan is all about creating this by setting the vision, missions and establishing goals which provide direction and focus for management and employees” said Fiona Hele, Director of Business Advisory at Perks Integrated Business Services.
Business owners however, choose to put off strategic planning for many reasons. They believe it will be too expensive, complicated or time consuming and will take their focus away from the daily running of the business. But the disadvantages are minor in comparison to the benefits that can be achieved.
At the heart of strategic planning is the ability to anticipate major shifts in the marketplace and identify emerging opportunities. This has become vital in today’s competitive market place where there is an unprecedented rate of change, due to advancements in technology and the internet.
According to Fiona “Business leaders must be looking ahead, anticipating the change, and developing a strategy to proactively and successfully navigate their way through in order to gain a competitive advantage”.
For small businesses, which are often limited in the amount of capital, finance and human resources they have access to, it’s very important to be making the absolute most out of your available resources. Even the slightest inefficiency may be significant enough to put your business at a disadvantage and could eventually mean the difference between success and failure in the long term.
Strategic planning enables a business owner to determine how to use all of their resources most effectively and therefore help advance the company towards its objectives.
Business owners that make strategic planning a central element of their management philosophy often become better at it as time goes on. They learn how to recognize subtle changes in the business environment that will have a direct impact on their revenue. They also begin to view the business as their customers see it, and formulate strategies so they do a better job of reaching new potential customers.
“Running a small business can be chaotic. It’s easy to get sucked into the day to day operations required to keep things running smoothly and profitably” says Fiona. “By taking the time to invest in a strategic planning process, you’re saying, ‘I am ready to take this business to the next stage of success’.’’
