Summary:

Starting off the new year with a strategic plan and high hopes to achieve success won’t get you far if your plan is flawed, as most are. The following steps outline the basics when developing a strategic plan.

1. Know the difference between a strategy and a tactic. Strategy is the plan that defines where you’re going.  Tactics are the things you do and use to get to the destination.

2. Be specific. A few words can make all the difference in the direction you take your firm, and the tactics you use to implement a strategy.

3. Engage the aging process. Like great wine, the making of a strategic plan takes time.  A strategic plan is NOT built during a weekend retreat!  It evolves out of thoughts, research, information, and experiences.

4. Keep it simple. Use the A-B-C approach:

A. Establish what you want to achieve: STRATEGY.
B. List available, realistic ways to make it happen: TACTICS
C. Select options that give the highest rewards for the lowest output: IMPLEMENTATION.

5. Follow the plan. Most plans are developed, and then put on a shelf.

6. Be flexible. If, during the course of the year, you find that the plan needs some tweaking, you can certainly modify it.  Be careful not to switch directions too often, as this will discredit you and your plan in the eyes of its followers.

Article Quote:

“Every year, we meet thousand of decision makers around the country in our consulting and speaking work.  Like you, they’re smart, ambitious, and they’re doing a decent job.  But, they’re also often frustrated that they aren’t doing better.  When we break down the element for them, we find that few if any of them have a good strategic plan they can work from.  In fact, most of them don’t even know how to create one.”

Link: http://lazerpromotions.com/blog/general/6-ways-to-build-a-stronger-strategic-plan

All the steps listed above are important to follow when building and implementing your strategic plan. Another useful tool is performance technology that not only keeps the plan visible to all users, but allows management an instant view of progress and accountability. ManagePro software is one such application that allows users to execute and monitor their strategic plans.

For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/

Summary:

Unfortunately, most new businesses fail for two main reasons: a lack of capital resources to carry the business until it becomes established and profitable; and a lack of management skills. Strategic planning that incorporates both of these elements will help ensure the business doesn’t fail. New business ventures need a lot of capital in the beginning for equipment purchases, supplies, and training new employees.

There are two forms of capital from which to choose: debt or equity financing. There are advantages and disadvantages to choosing to finance a bank loan for a new business idea. When financing with a bank, you can negotiate the terms of repayment and having a set payment plan helps stabilize expenses. However, the payment must be made whether or not there are profits to cover such payment.

Article Quote:

“Whether you are starting your business or expansion of IT financing, you will need to do strategic planning. This is particularly relevant for the new companies that have just started up.”

Link: http://www.usestock.net/business-finance-strategic-planning/.html

Strategic planning is essential whether businesses are start ups or well established corporations. Planning seeks to answer the question, “Where do we want to be and how are we going to get there?” There are several methods that can be used, such as swot analysis or scenario planning or hiring a strategic planning consultant.

Once a plan is developed, implementing it successfully is the next challenge. Strategic plans need to be translatable into daily activities that can be monitored for effectiveness. Monitoring allows for course corrections when the opportunities or threats present themselves.

For more on strategic planning, see http://www.performancesolutionstech.com/category/strategicplanning/