Updated: Jul 22, 2022
Strategic planning is the process of documenting and setting a path for your small business by evaluating both where you are and where you’re going. The strategic plan gives you a place to write your mission, thoughts, and values, as well as your long-term goals and plans you’ll use to reach them. A well-written strategic plan can play a crucial role in your small business’s growth and success because it tells you and your employees how best to react to opportunities and difficulties.
Besides the advantages of having a strategic plan, a growing number of small business owners aren’t focusing on the long-term strategies of their businesses. In a 2018 survey of 1,005 small business owners, 63% said they plan for only one year or less.
If you’re one of these small business owners, it’s not late to think wisely. Your future growth depends on practical strategic planning. Strategic planning consists of analyzing the business and setting sensible goals and objectives. This leads to creating a formal document that lays out the company’s views and goals for the future. It’s a method of looking ahead that should include your entire business, and the analyses can lead to significant changes in your business.