Strategic Business Planning
Strategic business planning:
It is often used to obtain financing, but business plans can be beneficial in many other ways as well. Developing a strategic business plan will help you to clarify the direction of your company and ensure that all leaders within your business are working toward the same goals. In addition, having a business plan will help your staff understand what tasks are most important.
Business planning is useful in the following situations:
- Your company is beginning a new venture or developing a new service or product.
- Your company is expanding a current service, product or organization.
- Your company is purchasing a new service, product or business.
- You are attempting to improve the status of a declining business.
A strategic business plan acts as a blueprint for your business. It will describe the nature of the company, the competitive environment, the financial health, the management team, the business risks and the company's products.
Having a business plan will allow you to:
- Recognize and describe the profile of your target customer.
- Recognize and describe the features, benefits, and advantages of a new service, venture, or product.
- Research the market for your new venture to be sure that your plans are likely to be successful.
- Develop marketing plans. These plans will typically include detailed explanations of targeted advertising campaigns with comprehensive timelines for execution. You will also be able to observe and analyze the nature of your customers, the market conditions, the sales potential, and your competitors. Finally, you can use this information to estimate results of your advertising campaigns.
- Develop plans for staffing that will allow you to distinguish the skills, expertise, and attitudes needed for your business venture.
- Develop plans for business management. These plans will include detailed descriptions of administration systems and execution timelines.
- Create financial plans that include operating costs, startup costs, break-even analysis, profits and revenue to span the first three to five years of your business venture.
- Determine equipment and building needs, develop cost estimates and choose appropriate vendors.
- Plan milestones for your company by creating comprehensive timelines for new services and products in development.
- Long-term financial plans can be used to efficiently predict and/or prevent potential issues. Having a business plan will offer you perpective that you can use to increase the liklihood of your company's success. In addition, a strategic business plan can assist you in acquiring necessary funds. The majority of investors and lending institutions will not even begin to consider funding your business without first seeing a solid financial plan.
Keep in mind that failing to plan is the same as planning to fail!
Lopato and Associates can help you with all of your strategic business planning needs.