Businesses often hear about writing a business plan. Seemingly every course, lecture, online reference and other resource about starting a business insists that a business plan must be done.
While it's true a business plan is important, especially if you are looking for money, what entrepreneurs or businesses don't often hear about is the necessity of a strategic plan.
One way to think about business plans and strategic plans is this: the business plan is the what, the strategic plan is the how; and if you don't have a plan for how to get it done, odds are your company will suffer. There is a reason fortune 500 companies use strategic plans, and pay significant salaries to chief strategy officers: strategy is important.
Here are 6 reasons you need to have a strategic plan in place, even if you have a business plan:
- It clarifies the overall vision, mission and purpose of your company.
- It crucial in prioritizing resource (time, money and people) to operate efficiently.
- A strategic plan develops your competitive advantage, how you're going to take on the competition.
- It's where you lay out your goals, a business must know what they are trying to achieve.
- Strategic plans set out initiatives and objectives, those goals mentioned in #4, you have to know how you're going to achieve them.
- It's used to actively track the progress your company is making towards the goals by reporting on metrics or indicators designed to measure company performance.
The bottom line is a strategic plan is incredibly important to keep your business on track for future success.