“All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.”
The key to a successful business is to plan strategically and know the right direction towards growth. Most of the business owners evaluate their past performance and deduce a strategy for their future development accordingly. Strategic planning helps in developing a road map for the business. Nearly 60 percent of the businesses start with a business plan, but fail to upgrade it along with the evolution of their business. Business plan is the foundation of a company and it is unwise to shove it off. But before creating a business plan, it is important to have a strategy for your business.
Strategic planning is among the important pillars of every business. A strategic plan comprises of a mission statement, vision statement, value statement, and an out-of-the-box thinking. It sets the direction of your business instead of the steps involved in the process. A business must know its target before creating a road map.
What is the function of a strategic plan?
Strategic plans are often confounded with business plans. The dream of the owner and the vision for the business are the foundations of a strategic plan. Strategic planning is more like preparing the blue prints of a business. It lays emphasis over the finished product and goal of the business. For small and medium scale businesses, strategic plan focuses towards the entire company instead of different departments.
Improvise: Key to a winning strategic plan
There is no definite way for creating an effective strategic plan. A strategic plan utilizes creativity and out-of-the-box thinking, so the best approach is to understand the company, niche market, and corporate goals entirely. One needs to generate innovative ideas and implement them to continue their growth.
‘Victory in war is not repetitious, but adapts its form endlessly.’
How SWOT Analysis can help in strategic planning?
SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats) is one of the most famous frameworks used by the Fortune 500 companies for devising their strategic plan. A successful strategic plan considers these factors including the strong points of the company, potential weak spots, possible opportunities for growth, and threats in terms of competition and changing industry standards. Every business should be aware of its competition and devise methods to outperform them.
Strategy is the root of Action
A business plan is useless without proper actions. One of the most important benefits of a strategic plan is the identification of the natural plan of action according to the strategy. In addition to incorporate the vision and mission of a business, a strategic plan lays the rudiments of the business plan to accomplish desired goals.