Strategic planning is necessary to determine the direction for your organisation.
It focuses your efforts and ensures that everyone in the business is working towards a common goal.
Developing a strategy for business growth requires you to deepen your understanding of the way your business works and its position relative to other businesses in your markets.
As a starting point, you need to ask yourself the following three questions: While the second question is at the heart of the strategic planning process, it can only be considered usefully in the context of the other two.
Spending time on identifying exactly where you want to take your business - and how you will get there - should help you manage those risks and take charge of the growth process.
As your business becomes larger and more complex, strategy formulation will need to become more sophisticated.Many businesses include a SWOT analysis or a PESTLE analysis as one of the key elements of their strategic plan.Other common elements are: You may also want to include an implementation schedule, key performance indicators (KPIs) and other accountability measures.By contrast, the purpose of the business plan is to provide the detailed route map that will take you in your desired direction.Effective strategy development requires a shift in focus from day-to-day concerns to your broader and longer-term business options.It also helps you: Read more about risk management.Effective planning usually results in a written strategic plan.You should balance your vision for the business against the practical realities of your current position.You need to take into account the implications of any changes, such as increased investment in capital and other resources.To do this, you might want to start collecting and analysing a wider range of information about your business - both about how it operates and about how conditions are developing in your current and potential markets.The process of strategic planning is about determining the direction in which you want to take your business.