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Strategic Planning: Key Reasons Why Strategic Planning Is A Must

Written by: Pete Turner

Article Overview: You're a busy entrepreneur and small business owner. You have heard a lot about strategic planning, but figure it's for big business. Besides you just don't have the time and/or resources to spend on planning. You have a business to run and right now things are going okay. So why must you have a strategic plan?

Strategic Planning: Key Reasons Why Strategic Planning Is A Must

You're a busy entrepreneur and small business owner. You have heard a lot about strategic planning, but figure it's for big business. Besides you just don't have the time and/or resources to spend on planning. You have a business to run and right now things are going okay. So why must you have a strategic plan? This plan doesn't have to be a lengthy document or involve a great deal of expense or time, but it does need to be well thought out. Need convincing? Below are seven reasons and benefits:

A plan helps the company focus on the important things: This allows allocation of limited resources to those activities that will provide the most "bang for the buck".

The organization now has a road map showing where the company is going and how it's going to get there.

Your workers get a better understanding of the company's direction and goals: They feel part of the team and take ownership in the success of the plan.

The company identifies it's strengths and weaknesses: Every company has it's strong points and it's weakness, knowing which areas in a company need help and which are your strong area allows you to go with your strengths and at the same time work on those that need improvement.

A plan identifies and analyzes available opportunities and potential threats: This helps the company to prepare for the future, seizing on opportunities and guarding against threats.

A strategic plan sets specific goals and objectives: A company now has a clear define path to success.

Develops a monitoring system to measure progress: A monitoring system will quickly identify areas needing attention before they become major roadblocks and allows you to keep a score card.

Why do you need a strategic plan? Because without one your company is at risk from both internal and external threats. Can a plan prevent future threats? No, but by identifying threats makes your company better prepared to handle unforeseen crisis. Just as important it will allow you to take advantage of opportunities. Lastly a good strategic plan will save you time, expense and better conservation of limited resources rather than no plan that has the company reacting instead of anticipating and planning.

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Article Tags: company focus, entrepreneur, external threats, goals and objectives, important things, lengthy document, limited resources, monitoring system, needing attention, risk, road map, roadblocks, score card, small business owner, strategic plan, strategic planning, strengths and weaknesses, strong points, time work



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