But strategic plans are important: they give you focus, purpose, and direction. So let’s look at how to develop a strategic plan for your small business that you will actually use.
What is a strategic plan?
A strategic plan is a statement of your business’s vision, purpose, goals, and strategies. To create one, incorporate these five elements:
- Vision: A simple declaration of your business’s long-term goals.
- Mission Statement: Why your business exists.
- Goals: What your business wants to achieve in the short and long term.
- Objectives: The tasks needed to be completed to reach your goals.
- Action Plan: How you are going to complete your objectives and achieve your goals.
You can also think of these elements as the who, why, what, when, and how of your business.
Strategic Plan vs. Business Plan
Before committing to creating a strategic plan for your business, it is important to understand the difference between a strategic plan and a business plan. A business plan is an operational document that focuses on the details of how a business will conduct its activities.
A Business plan comes after a strategic plan has been completed. Think of a strategic plan as a map outlining your destination and a business plan as the compass to help you get there.
Now that we know the difference, let’s go ahead and create a strategic plan for your business.
Strategic Planning for Small Businesses
The five elements that comprise a strategic plan are just a variation of the building blocks of a story:
Who > Why > What > When > How
OR
Vision = Who
Mission Statement = Why
Goals = What
Objectives = When
Action Plan = How
Instead of getting lost in the process of creating a strategic plan, you are simply telling the story of your business with clear, defined points. Let’s look at an example.
Strategic Plan Small Business Example: Lawnmower Ben
Vision (Who):
The go-to lawnmower man for the greater Penrith/Emu Plains area. No lawn is too big!
Mission (Why):
Offer lawn care services to help people achieve the home and outdoor space they want. We help people take pride in where they live.
Goals (What):
- Short-term: Increase revenue by 10% and acquire more clients (15)
- Long-term: Hire more staff, expand into more territory (Glenbrook, Leonay, etc.), and get off the tools.
Objectives (When):
- Following 3 months: Launch referral program, flyer drop in Glenbrook.
- Next 6–12 months: Train a junior mower, build/outsource an online booking system.
Action Plan (How):
- Track leads and revenue weekly.
- Use social media and local groups for promotion.
- Partner with local real estate agents for client referrals.
- Review progress every 6 months and adjust strategy.
Tips on how to stick to your Strategic Plan
Your strategic plan is your road map. Sticking to it is essential to achieving the goals you have laid out for yourself and your business.
Review your plan periodically
Oftentimes, a strategic plan is made with a great deal of effort only to be left collecting dust in a desk drawer. Periodically reviewing your strategic plan ensures that the effort aligns with what you originally set out to do. When reviewing your strategic plan, consider whether everything is going as planned or if you need to adjust or pivot.
A good review of your strategic plan starts with a SWOT analysis. SWOT stands for:
- Strengths
- Weaknesses
- Opportunites
- Threats
By using SWOT, you can properly evaluate how well your business sticks to the strategic plan. Utilise your tools to review, set up calendar appointments, and lock in time for review.
Consult with a business manager
Rarely does any business succeed on its own. Engaging in conversations or consultations with like-minded business owners, financial managers, bookkeepers, and accountants provides you with insights from people who have navigated similar challenges.
If someone you trust becomes invested in your plan, it will increase the chances that you stick to it. You will also have the opportunity to learn and grow your business through developing connections with other business owners and communities. With this in mind, check out any local business resources in your area.
Make your strategic plan visible
Keeping your strategic plan in plain sight is a simple yet effective way to incorporate your strategic planning in everyday workflows. This doesn’t mean you have a written document stuck to the wall: visualise your strategic plan.
Create a poster or card that you can print and display on your dashboard or hang up. Visualising your goals, purpose, and objectives will make your strategic plan second nature.
Break it down in simple terms.
The KISS (Keep It Simple, Stupid!) principle may be the single greatest piece of advice you can use to divide challenges into easy-to-digest segments. By breaking things down into actionable steps and keeping your approach simple, you reduce the chance that you will throw out your plan.
In our example, the answers to the five elements of a strategic plan were kept in one to two-sentence answers by design. Being concise and to the point keeps you focused on your tasks and makes them manageable, giving you the best chance for success.
Committing to your Strategic Plan
Sticking to your strategic plan requires discipline; it is easy to fall into the habit of going through the motions. The benefit of a strategic plan is that it provides more than just direction, but also inspiration to work towards your goals. A strategic plan should remind you why you are in business in the first place. So, create and commit to a strategic plan for your small business and make sure you have the right tools to make sure that you reach your destination.
