How to write and execute a strategic plan for your business

Some businesses are planned and well-thought-out from the beginning, with a business plan, funding sources, and a product launch plan. Others are bootstrapped – a hobby or interest turns into a business over time, until suddenly, you’re supporting yourself and your family with your new venture. No matter which way your business got started, and no matter what stage you’re at right now, you should have a strategic plan to ensure success now and in the future. 

A strategic plan is different from a business strategic plan. This plan is usually created when a business is first starting out and may be used to obtain funding. But a strategic plan is more dynamic and will change and grow with your business. It can help keep you on track and alert you when it might be time to switch gears. The four steps of business and planning are to create, work, review, and revise your plan. Let’s explore business strategy for business in more detail. 

4 Steps to creating a business strategic plan

1. Create your plan: A company’s strategic plan sets the stage for success

A strategic plan does not have to be a long, detailed document. It’s meant to be a work in progress, so don’t get too caught up in the details. Your strategic plan should include these components:

• Your company’s mission. This indicates what your company does, who its customers are, where it operates, and why it exists, including what makes it unique.
• Your current situation. Describe the business as it currently exists, including what products or services you provide, what your current revenues are, what your current operations look like and your competitive position.
• Your business goals. Where would you like your business to be in a year? Five years? Ten years? Do you want to grow organically or acquire other products or businesses? Would you open additional locations or consider franchising your business concept? Do you want to bring on more employees, or perhaps a partner? Your goals can be just about anything – it’s your business, after all. 

Related: A step-by-step guide to strategy development and creating SMART business goals

2. Work your plan: Strategic planning for small business

Take a look at the short- and long-term goals you have for your business. Choose a few that are feasible and focus on those first. A mix of short-term and long-term goals is best. You don’t want to have to wait too long before you see some results, but you also want to tackle some of those bigger initiatives. 

Now that your target goals have been identified, determine how you will achieve them. Try using “if-then” analysis. Ask yourself, if I change this, what will likely happen? You may discover several ways to achieve a single goal, so rank them by how easily you can implement them and how likely they are to be successful, then decide which one you’ll try first. 

3. Review your plan

Once you have created your plan, review it periodically. The first review should be fairly soon after you’ve written it – say, within 60 to 90 days. This early review will help you see if you’ve assessed your business correctly and if you’ve included everything you want your plan to cover. 

You should review your plan again after you have implemented changes. Take a look at what you changed and whether the change had the intended effect. If it didn’t, figure out another way to reach that particular goal.

4. Revise your plan

Your strategic plan should grow and evolve along with your business. Revise it regularly to show the changes you made and the effect they had on the business. Update your goals to reflect your new status – if your goal was to increase sales by 10% last year and you achieved that, perhaps you want to shoot for 20% this year. 

If you’re having difficulty reaching a goal, try breaking it down into smaller goals that may be more achievable. Or, consider if a different goal might be better for your business. 

It’s often said that no one plans to fail, they just fail to plan. With a comprehensive and dynamic strategic plan, you can set your business up for success. 

Frequently asked questions

What is a business strategic plan?

A business strategic plan is a formal document that outlines an organization's long-term goals and the strategies to achieve them. It serves as a roadmap, aligning resources and actions with the company's mission and vision. Key components are typically included.

• Mission Statement: Defines the organization's core purpose.
• Vision Statement: Describes the desired future position of the company.
• Core Values: Fundamental beliefs guiding behaviors and decision-making.
• SWOT Analysis: Assessment of strengths, weaknesses, opportunities, and threats.
• Long-Term Objectives: Specific goals the organization aims to achieve.
• Strategies and Action Plans: Detailed approaches and steps to reach the objectives.

How to write a strategic plan?

Developing a strategic plan involves several key steps.

1. Conduct a situational analysis
   1. Evaluate the current internal and external environments using tools like SWOT analysis.
2. Define mission and vision statements
   1. Clarify the organization's purpose and aspirations.
3. Set long-term objectives
   1. Establish measurable and achievable goals aligned with the mission and vision.
4. Develop strategies
   1. Identify broad approaches to achieve the objectives.
5. Create action plans
   1. Detail specific actions, timelines, and responsibilities for implementing strategies.
6. Establish monitoring and evaluation mechanisms
   1. Define metrics and processes to track progress and make necessary adjustments.

For insights into structuring a comprehensive plan, this firsthand account highlights key lessons from writing an extensive strategic business plan.

How to turn a strategy into a plan?

Translating a high-level strategy into an actionable plan requires several things.

• Breaking down strategies into tactics
  • Specify the actions needed to implement each strategy.
• Assigning responsibilities
  • Determine who will be responsible for each action.
• Setting timelines
  • Establish deadlines for each action to ensure timely execution.
• Allocating resources
  • Identify and assign the necessary resources, such as budget and personnel.
• Implementing monitoring systems
  • Use tools like balanced scorecards to track progress and performance.

Strategic planning doesn’t have to be overwhelming. This guide offers practical advice on simplifying the process.