When you have your own business, your to-do list is often unending. For this reason, the thought of creating a strategic plan may seem like an unnecessary way to take up more of your limited time. If this sounds familiar, you are not alone. The truth is, this is a common mistake that many business owners make.
Without a doubt, your time is one of your most valuable assets. With that said, dedicating some of yours to creating a solid strategic plan is a move that can pay off in the future. If you need more convincing, then look no further. Here are six reasons why your business needs a strategic plan.
In a nutshell, a strategic plan for your business will allow you to:
Double-Check Your Thinking
It does not matter how great an idea may be in your head; writing it down and having it in front of you can be a complete game-changer. A business strategic plan is one of the best ways to bring all of your ideas and knowledge together in one place where you can reflect on them.
Keep Things Simple
Another useful thing about having a strategic plan is that it can help you keep things simple in the ever-changing (and sometimes chaotic) world of business. By incorporating bullet points, tables, and diagrams into your plan, you can create a clearer picture of what you are trying to accomplish.
Think of your strategic plan like a map. Would you try to drive across Australia without looking at a map? Just as venturing into unfamiliar cities and towns can be confusing, trying to navigate your own business can be extra complicated without a set of directions. One of the most helpful things about a strategic plan is that it can help you prioritise the actions you need to take first.
Reduce Chances of Failure
According to the Australian Securities and Investments Commission, poor strategic management was a leading reason why Australian businesses failed in 2019. To be more exact, it was responsible for 43% of failures. If you want to reduce the chances of this happening to your investment, putting together a solid strategic plan is one of the smartest business moves you can make.
Indeed, ineffective planning is one of the top reasons that all small businesses fail.
Track Your Progress
Lastly, a strategic plan can be an excellent tool for keeping track of how well you are achieving the goals you have set for your company. Creating a plan will require you to identify and define your business goals and the steps needed to accomplish them.
In addition, you will also need to find a way to measure whatever goals you list. To do this, many business owners use key performance indicators, or KPIs, to help them. By creating KPIs and clearly outlining specific and actionable steps, strategic planning can help everyone within your business focus on what they need to do to help reach goals.
Secure Business Funding
When it comes to funding your business endeavours, lenders almost always want to see that you have a plan for how your business is going to accomplish the things it sets out to do. For both bank loans and government-funded grants, a strategic plan can be an effective way to demonstrate the value and solidity of your business.
Creating a strategic plan might seem like a lot of work at the end of the day, but it is important to work, and if you want to ensure your business is successful, it is necessary to work. The good news is, it can save you a lot of trouble down the road.