Developing Strategic Business Plan
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Most people have wondered why entrepreneurs spend several hours developing business strategic plans. They think that having a vision for a business is just enough. Businesses without proper strategic plans have remain static or died with time. There are numerous reasons why strategic plan is important for a business. Through strategic plan, the entrepreneur will think through all aspects of business enabling him/her to spot and categorize opportunities and obstacles in the business (Nicholas, 2006). The identification of obstacles will help in determining areas where professional assistance is required, refine tactics and strategies and set new objectives where necessary. Strategic planning will also help in communicating one’s vision to the associates so that they can make useful contributions to the business. Good strategic enables the business to obtain loans from investors and lenders. It is often difficult to get loan from lenders without business plan that is comprehensively written (Molly, 2001).
It is through proper strategic plan that the true outlook of the business seen. As the entrepreneur maneuvers around all business aspects, he/she will be able to notify the obstacles and opportunities. The market and customers will be known as well. Ducker, said: “A leader must foresee the future and see what is invisible to others.” Comprehensive business plan can assist one to relocate the business for prosperity (Molly, 2001). This is after the identification of the weaknesses and opportunity through business strategic plan. The detailed information regarding the customers, market will be provided and the competitors will be identified. Having good market information will help design appropriate strategies and methods in managing the market competition. The strength and weaknesses of the competitors once identified will provide suggestions to how they can be defeated (Nicholas, 2006).
The initial step in developing strategic plan is making of mission statement for the business. The mission statement should not only include business in present moments but future as well. The excellences and knowledge are to be considered in developing business strategic plan. The expertise and strengths of business, corporate culture, selling promotions that are included in business plan are of great importance. They give the business directions, objectives and achievement methods. The history provided in plan is to determine whether the set objectives and missions are achieved. The knowledge will assist in future planning (Nicholas, 2006).
Most lenders, investors, newer associates, bankers do require the business overview before releasing funds. The reasons of funding, business achievements and entire key milestone will be reflected in the business plan. The provided information like financial statements, expansion trends will be used by loaners and investors in making decisions. The strategic plan will as well help in the identification of the present situation of the business and development of suitable strategies. The opportunities, strengths, threats and weaknesses identified through business plan are also of great importance. All the business plans are made considering the above SWOT analysis (Molly, 2001).
Making comprehensive business plan is not a minor task. A properly done strategic plan can assist to guarantee prosperity and long-term survival for a business. Planning is easy when it is split into small tasks. Their completion becomes simple. As various businesses face challenges and opportunities, strategic business plan helps to design appropriate solving methods. Strategic plan also helps in knowing the customers and the operational markets as this is important for business growth and prosperity. Strategic plan is hence essential in many aspects and should be developed by all entrepreneurs (Nicholas, 2006).
References:
Molly, L. (2001). Strategic business plans: new strategies. Nairobi. Roy Publishers.
Nicholas, T. (2006). Developing strategic plans: The theory and practice guide. London. Koran
Publishers.
