Strategic planning: big gains for entrepreneurs

In my role as a Senior Manager Consulting for BDC I meet with many entrepreneurs every week. I am observing that many if not most do not have a formal  and documented strategic plan. They are managing their business by the seat of their pants, chasing business opportunities in all directions and going to one crisis to the next. This opportunistic approach to management is often causing them to make errors, poor choices in resources allocations, burning energy and cash as they go.

From time to time entrepreneurs should take a step back and take some time to work «on the business» not just «in the business», and reflect on their priorities, objectives and on the best way to achieve them.

Just as we make new year resolutions in our private lives, business owners would be well advised to take a litle bit of time to reflect on their businesses.

I am reproducing here after an article on the subject of Strategic Planning which I believe is ritht on.
Please contact me if you would like to discuss the subject in more details.


from BDC.ca
http://www.bdc.ca/EN/advice_centre/self_management/Pages/RelatedArticles.aspx?PATH=/EN/advice_centre/articles/Pages/strat_planning.aspx


As the economy heads into recovery, entrepreneurs should be gearing up for growth. That makes it an excellent time to put strategic planning at the top of the agenda.


"Strategic planning means looking at where you want your company to be in the next 3-to-5 years and determining what you need to do to get there," BDC Consulting manager Nyron Drepaul says. "Whether it's buying a competitor, increasing your capital or aiming for higher growth, you need the right strategies, structure, plans and controls in place to optimize the return on your investment."

A common misconception is that strategic planning is only for large companies. But the reality is that most businesses can greatly benefit from the exercise.

"If you're always busy putting out fires, you may feel you have no time for planning," Drepaul says. "But by developing big-picture strategies to guide your day-to-day operations and setting goals, you're no longer flying blind. A long-term plan simply increases your chances of success."

Another reason for entrepreneurs to make strategic planning a priority is that it reduces risk, particularly in periods of economic uncertainty. "As part of the process, you'll be assessing your current situation, resources, strengths and weaknesses, competitors and the business environment. This way, you will be better equipped to make decisions and therefore to minimize risk."


For Drepaul, strategic planning also helps entrepreneurs to shake things up a little. "It's a way to rekindle the entrepreneurial drive that got you started in the first place. For example, you may have started out with a dream of a $10-million business with stores all over the world. But along the way, you got distracted by daily challenges, lost sight of that dream and settled for less than your true potential."

"Strategic planning reignites that passion for what you're doing. If you have a real plan with goals, it's very rewarding to achieve each milestone. That sense of satisfaction builds the momentum you need to push even further."

Drepaul recommends entrepreneurs involve their employees in the strategic planning exercise, particularly in smaller companies. When employees contribute, they take ownership of the plan and help you reach your goals, he says. "This builds enthusiasm in your company and gets everybody on the same page." For example, entrepreneurs can ask employees to brainstorm about a company's strengths and weaknesses. After all, your staff knows your company inside out.

A crucial part of successful strategic planning is to ensure you seek an external, objective point of view. Most small businesses don't have the resources and expertise in-house to guide them through the strategic planning process. "A consultant can give you a fresh perspective on your business, help you envision the future you want and define your long-term goals," Drepaul says. "An expert can also ensure you follow a rigorous plan with clear timelines and assigned responsibilities.

"It's about getting you thinking differently about your company and bringing you closer to achieving your dreams."

At a glance

Strategic planning enables you to:

• Envision your company's future over the next 3 to 5 years

• Define your long-term goals

• Assess your current environment, as well as strengths, weaknesses, opportunities and threats

• Develop strategies and tactics to address any identified problems

• Assign timelines and responsibilities to turn your plan into reality

• Reduce the risk of doing business based on better decisions and achieve your company's potential