When I ask business owners if they have a strategic plan, they tell me “Of Course!” When I ask to see it they say “Well, I don’t have it on paper! But I know what it is.” Then they proceed to tell me their version of the plan which is typically a loose description of the products and services they provide their customers.
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If you don’t know where you are going,
any road will take you there. ~ Lewis Carroll
This is not a strategic plan! It’s a service offering. I then ask, “Why are you providing those products and services?” This tends to be easier to answer. Most entrepreneurs got into their business because they had a passion for or an expertise in a certain product or service and they saw a business opportunity in it.
While passion is a good reason to get into business, planning is what keeps you in business.
The most important reason for a Strategic plan: Communication
- The Owner gets focused and clear
- Employees get on the same page
- Customers know who you are
Owner Gets Focused
The strategic plan is primarily a communications tool. It provides an avenue for the business owner to become focused and clear on why they are in business, what they want the company to look like in the future (3-5 years), and how they plan on getting there.
Once he has this clarity, he is able to make better business decisions and guide the organization in the direction that he really wants it to go.
Get Employees on the Same Page
Unfortunately, as their business grows and they bring on staff, business owners often don’t communicate to them the reason they are in business and where they plan on taking the company in the near future. This provides an opportunity for the leadership team and staff to work toward their own goals and agendas.
Have you ever been to an Orchestra? It’s beautiful, right? Why is that? It’s because everyone in the orchestra is working toward the same goal. They are all playing their part in a coordinated effort that is led by the conductor.
Imagine if the conductor never told the group what song they were to play and just said, “Ready, Set, Go!” Everyone would be playing their own tune and while their individual efforts may be a work of art, the overall sound of the orchestra would be horrible!
The most important reason for creating a strategic plan is to make sure everyone on the leadership team, and subsequently the staff, are all on the same page regarding the direction and goals of the organization.
So when decisions need to be made, the decision makers will be able to assess whether their choices are in line with the business objectives. This creates a stronger organization with all the players rowing the boat in the same direction.
Attract the Right Customers
In addition to informing the employees of the firm on the purpose and direction of the business, it also let’s your customers know.
When you communicate to your customers and potential customers the reason you are in business, what your business is, and how you operate, you attract those customers that want to and need to do business with you. And this creates a safe environment for customer to engage with you.
When you become more attractive to your target market, you are better able to serve them and grow your business.
Creating a strategic plan is important regardless of the size of your firm. It is the ultimate communication tool for business and lets your leadership team, your staff, and your customers know who you are, why you are in business, and how you operate so that you can grow your business.
Question: Do you have a Strategic Plan? Why? You can share your answer on Facebook, Twitter, or LinkedIn.