25 Jan Strategic Planning: Why Do You Need To Do It?
Every business, whether a small business with a few employees, to a Fortune 500 company, you need to spend time thinking strategically. As small business owners we spend so much time working “in” our businesses, and not working “on” our businesses. I had a networking breakfast the other morning, as he put it, we are either “heads down” or “heads up”.
While the start of the year is a great time to have this exercise, it really doesn’t matter when you do…it only matters that you do it.
Effective strategic management can bring many benefits to any business – here are just four examples.
It outlines a clear path for your company
No business can hope to succeed in the long run by not having a plan and simply hoping to stumble across success. Sure, you might have some success, but can you sustain it? A strategic plan is like GPS for your business. It defines the goal, and then helps you to set that route to get there in the most efficient manner. Goals always are changing and moving as your business grows, as it achieves goals, and sets new ones.
It brings a sense of focus
Because a strategic plan establishes a direction for your business to take, it will help it sharpen its focus in order to get there. Sharing that strategic plan with the organization helps to develop the right goals and targets and help everyone focus their efforts into meeting them.
It improves your business’s self-awareness
Taking the time to establish a comprehensive strategic plan means your business has a better awareness of its strengths and weaknesses and where it stands in the market, both individually and in relation to competitors. We are all guilty of being so “busy” and we don’t take the time to look at our businesses constructively.
It gives your employees something to work towards
Strategic planning isn’t just beneficial for those highest up in the management hierarchy – it gives everyone in the organization a sense of purpose. With a definitive mission and clear goals and objectives to work towards, your staff will know their efforts count towards something and will be motivated to do their job.
A Fractional CFO can help you create a strategic plan. Contact us today.