Many business owners are reluctant to create a formal business plan, let alone revisit one. It might not seem like a high priority, especially when there are so many other myriad tasks that tend to take precedence. However, creating a business plan and revisiting it from time to time is a smart decision – both from a fiscal standpoint as well as a general business standpoint.
Not only will it aid in clarifying company direction, but it will also ensure that key team leaders are all working from the same ideas.
Most of the time, a strategic business plan is used as a tool in the very initial stages of a business. It is mostly crafted to obtain financing and abandoned soon thereafter. If all your plans and ideas – both current and future – are locked up in your head, consider preparing a strategic plan.
Not only will it aid in clarifying company direction, but it will also ensure that key team leaders are all working from the same ideas. A strategic business plan is a critical tool to keep both management and staff focused on the tasks at hand, and helping them understand what the true priorities are of the business.
There are usually 4 key reasons why a strategic business plan should be revisited, and it is vital to do this for the overall longevity of your business.
These reasons include:
1. Starting a new venture, product, service
Whether your first venture or your third – a strategic business plan must be high on your list of tasks. The plan will help solidify your decision for the venture, as well as providing a guideline of sorts of what the future of this venture will be. Anytime you are considering starting a new venture – create a business plan.
2. Expanding a current organization, product or service
When your business is doing well, it is tempting to start thinking about new paths for it. For many, expansion is usually a major priority after a business has been established in order to capitalize on its rapid ascent.
However, expansion must be given a great deal of thought. There are many factors to consider, such as market needs and operational costs. Use the strategic business plan as a means to work through these issues, and assess whether expansion is truly that viable of an option.
3. Buying a new business, product or service
Mergers and acquisitions are also a fundamental component for the growth and overall success of a business, but it needs a lot of evaluation and thought.
A strategic business plan will help in the decision-making process, especially when attempting to ascertain how to quantify the return on investment. Purchasing is often a risky endeavor, so it is crucial to craft a plan for any new purchases in order to determine if it really is worth it.
4. Turning around a declining business
Seeing a business struggle and decline is an incredibly painful task, especially considering the sheer number of resources it took to establish the business in the first place. Though it may be tempting to revive a business in any way possible, consider if it is truly worth it or not.
Revisit the original business plan, and compare it to current conditions. Is it truly worth bringing back, or is it better to walk away? And if you choose to stay and revive the business, the plan will help the process of creating a strategy to save the business.
Ultimately, a strategic business plan is a blueprint for the success of your business, and thus must be treated with careful thought and consideration. To learn more about strategic business plans and how they can help drive success for your company, please do not hesitate to contact us.