There is a famous quote, “A goal without a plan is just a wish.” A goal can only really be achieved when hard work, time, resources and structure are put into place. One element that can help a company achieve its growth goals is strategic planning. So, what is strategic planning, and how can it help you? It's also worth knowing you'd be in the majority without one — the UK Government's Small Business Survey found that only 39% of SME employers, and just 23% of businesses with no employees, have a formal written business plan in place at all.
Understanding the Basics of Strategic Planning
Strategic planning is a systematic process of envisioning a future goal and defining a strategy that works for an individual company or organisation. It involves making decisions on important aspects such as allocating expenses and dividing a future vision into manageable goals, often as a step-by-step sequence for moving from one point to another.
Strategic Plan vs. Business Plan: What's the Difference?
These two terms are often used interchangeably, but they serve genuinely different purposes. A business plan is typically a one-off document — often written to secure funding, satisfy a lender, or formally register a new business — covering things like your offering, market, and financial projections at a single point in time. A strategic plan, by contrast, is an ongoing, living process: it's revisited and adjusted regularly as the business actually performs against it, rather than being filed away once written. If you already have a business plan, strategic planning is what keeps it relevant instead of outdated within a year.
How Is Strategic Planning Different From Long-Term Planning?
Strategic planning is not the same as long-term planning. Long-term planning sets out how the strategic plan is achieved and is usually given a timeframe, often around five years. The exact period depends on the company’s vision and objectives. Both are important, but they serve different purposes.
How Can Strategic Planning Help Your Business?
When you are interested in growing your business, defining your goals is essential. Strategic planning helps you establish:
- What your company is missing, such as stronger team productivity
- What you want, such as more leads and increased revenue
- What you need to achieve, such as better customer engagement
Without defining these areas, you could work hard without seeing the right results. Strategic planning also provides clear communication across the company, defines the overall business mission and aligns goals throughout the organisation.
Forming Your Strategic Plan
Start by understanding the current situation of your business. Review staff productivity, customer engagement, expenses and whether your mission statement still reflects the organisation. A detailed audit of your strengths, weaknesses, opportunities and threats is an essential starting point.
Next, decide where you want to take the business. Turn the areas needing improvement into goals, connect related factors and define the strategies needed to achieve each objective. Review the plan, make any necessary changes, then put it into action and monitor progress.
Build a Plan That Works for You
Your strategy needs to fit your business. Strategic planning templates and examples can provide a useful starting point, while professional guidance can help you shape a plan around your specific circumstances and goals — and, just as importantly, actually stick to it once the initial motivation fades, which is often where ongoing coaching support makes the real difference.
Strategic Planning Beyond Growth
Strategic planning works for many objectives, not only growth. Your goal might be to open locations in new countries, improve sustainability or transform how the company operates. Once you understand the process, you can apply it to a wide range of business ambitions.
If you have questions about putting your strategic plan in place or would like to see how Cambridge Advantage can help, get in touch with us today.
