As an owner of a boutique business planning business, I am often out and about networking and marketing my business to other small to mid-size business owners. But often, when I mention the word Strategic – dollar sign warning bells start sounding, and a glazed look appears on their faces.
The truth is, strategic planning is the art of taking the big picture, long-range view of any problem – and breaking the solution down into executable chunks. It is the ability to ask “what if” and figuring out the different tactics to accomplish the desired end result.
With a small business owner, the need for this kind of in-depth analysis may seem overwhelming. Most people start their business because they are good at creating their product – not because they are skilled at managing employees, marketing their product, invoicing and accounting, running the IT systems and so on. So why have a business plan at all?
- To identify what you need to know. The process of business planning identifies what you know and what you need to learn in order to effectively manage all the moving parts of a growing business.
- To obtain funding. Banks and lenders want to see that business owners understand the moving parts of their business and have the critical problem-solving skills to be agile when an unforeseen problem arises. The business plan is really just an exercise in creativity and what if’s, but it can answer the questions – am I charging enough, do I have realistic achievable goals and do I know how to zig when I’ve been zagging too long?
- To be proactive vs. reactive. Failing to plan is planning to fail. Even simple things like setting a budget, technology refresh plans, sales goals, and basic job descriptions all place your business in a better position; like an eagle soaring versus the elk at the bottom of a gully. The elk will only see the trees and the river beside it – while the eagle will see for miles and be able to account for any issues that may arise.
When a potential client comes to me with the inevitable question – “Do you write business plans?” my answer is, “I certainly can, but better yet, I teach you how to write yours.” This tactic helps reduce costs, and allows me to become the facilitator for the process, and for the business owner to be equipped for success.
Kat Roedell – Ignite Business Planning Services
