This blog post has been authored by Stand Out Online Member Kelly O’Neil, Innovate Media Services
Do you want to know the #1 mistake that prevents even the best business ideas from gaining traction in the market? It’s surprisingly simple, and yet so many entrepreneurs think they don’t need one. They miss out on profits and strategic moves that could grant them the team cohesion and solid foundation every business needs to be sustainable.
Want to know what it is?
(Drumroll, please.)
The Strategic Plan.
It seems so obvious, and honestly, I know a lot of entrepreneurs believe in its importance, but….
Over 99% of entrepreneurs and owners of small businesses don’t believe they need a strategic plan or just never get around to writing one.
Then they wonder why their team isn’t in alignment. And no matter how much time and money they invest day in and day out, their business just never gets that necessary traction for lift off.
So what’s all the fuss about a strategic plan and why do you absolutely need one? There are a ton of reasons, but here are the biggies:
9 CRITICAL WAYS A GREAT STRATEGIC PLAN HELPS YOU GUIDE YOUR GROWING COMPANY AND INSPIRE YOUR TEAM
1. Laser Focus on Your Goals. The strategic plan lets you dial in on who you are as a company and exactly where you want to go. It helps you evaluate every move and every decision based on how it helps you achieve your goals. This way, you don’t end up sending money, time, and energy in directions and endeavors that aren’t directly tied to your end goal.
Even more importantly, a good strategic plan forces you to define your business. In order to determine your overall goal, you need to think deeply and get clarity about what exactly your business is about and where you want to end up. It forces you to define all aspects of your business structure, operations, products, investments, and marketing around that unified, intentional end game goal. The result is a powerful alignment of all elements of your business that lets you operate leaner, meaner, and far more profitably.
2. To Give You a Clear Outline of How Your Dream Is Possible. The work you do to map out and strategize your dream for your business will help to quash those pernicious doubts that can haunt you during the day-to-day difficulties of running and growing your business. As we all know, those doubts can suck the energy right out of you—energy you need to be investing in your business to make it grow.
Doubts and reservations are something that all entrepreneurs and business owners must deal with daily, but you can combat those energy-draining doubts with a clear plan and outline for success. After you’ve written the strategic plan, you’ll have evaluated all aspects of your business and what it will require for success—including the market, sales projections, production, logistics, and so on. You will know your vision is possible, because you’ve already thought all the way through the process.
3. To Anticipate Costs and Maximize Your Return on Investments. Writing a strategic plan forces you to look closely at the nitty-gritty of your business. It’s easy to overlook a lot of the costs (not all of which are financial) of starting and running a start-up. A mistake many new business owners make is to underestimate or overlook the less obvious costs. Writing a strategic plan enables you to identify where your blind spots and hidden costs might be, so you can plan in advance. That way, they won’t blindside you, causing unexplained losses or leaving your company reeling. Plus, it helps you identify where you can maximize your investments to gain the highest returns.
4. To Get You Ahead of Your Competition. You want to run a successful business, and that means you’ll be competing with dozens or maybe hundreds of other companies in your market space. Your strategic plan will help you clarify your position in the market so you can maximize your strategies and give you a clear roadmap for execution. Your strategic plan will give you the exact strategy you will follow to accelerate your business past your competition. It will give you a clear picture of what you have to offer, an understanding of who your competitors are and what they are doing, your product or service development strategies, marketing strategies, and financing, and it establishes what your vision of success is.
5. To Get Your Team in Alignment. When you and your team are working straight from the strategic plan, you are working from the same playbook. You know what the goals and expectations are, and it’s like a dogsled team with everyone running in the same direction (and we all know what it can look like when you’re not!). You share a clear vision of what the business is, where you want it to go, how you’re going to get there, and what your individual roles are to make that vision happen. Furthermore, when someone joins your team, it’s easy to get them quickly up to speed and running in the same direction as you. This helps keep the momentum going that you need to gain traction for lift off.
6. To Join Forces with other Major Players. Strategic alliances, joint ventures, and partnerships are often the key to major growth. What if you want to convince a manufacturer to buy a part only from you? Or let’s say you want to develop alliances and partnerships that benefit both parties and make you both stand heads above your competition? Either way, your potential partners will need to have confidence in the viability of your company, and your strategic plan is your proof. Just as it gives you confidence in your success, it will give others clarity and confidence in your success, as well.
7. To Determine Creative New Areas for Expansion. A strong strategic plan allows you to demonstrate your vision and goals when you are ready to expand your business by bringing in new team members and partners. This can help you attract new and powerful players to your team. You want the best, and the best want to be on winning teams. The strategic plan can demonstrate not only your success, but how you plan to succeed in future endeavors.
8. To Develop Clarity on Your Market. It could be argued that nothing is more important in business than thorough knowledge and awareness of the market you serve. Too often, business owners try to fudge this and make assumptions without doing their due diligence. Writing a strategic plan forces you to get really clear on your market, including your niche, your competition, and market forces. This is absolutely critical information for you to survive and thrive. Unfortunately, too many businesses skip this step, and then they wonder why in the world they just can’t get off the ground.
9. To Stay the Course. When you have a good strategic plan, it’s easy to stay on course. It helps you cut through the noise and distractions, determine the best new opportunities, bring the exact product to market that your customers need and are willing to pay you for, and help you stand out in a crowded market. The strategic plan keeps you focused and making informed, timely decisions focused on a singular goal: Success.
In summary, a strategic plan is the document that convinces yourself and others that your business is a winner. It amps up your own faith and excitement about your product or service, and it is the major key to your long-term, sustained success.
In other words, your strategic plan is the BOMB.
Whether you use it as only an internal document or as communication with your employees, business partners and investors, having a solid strategic plan is critical to your success.
But there’s a reason so many entrepreneurs don’t even try.
Kelly O’Neil is a multi-award winning entrepreneur, affluent marketing and brand-marketing expert for the next generation of innovative companies and thought leaders.
As a highly successful marketing consultant for service-based businesses, Kelly knows exactly what it takes to exit a recession stronger than when you entered it. Her ability to tap into and understand the affluent mindset has made Kelly America’s leading expert in selling to the millionaire market.**
She has been featured in Entrepreneur Magazine, Wall Street Journal, Fortune, Forbes, NBC, and Huffington Post among others! Kelly is a best-selling author, has shared the stage with industry legends including Tim Ferris, Jack Canfield and Brian Tracey, and was named by Seth Godin as “One of the Most Innovative Companies in America.”