Strategy And The Small Business

Think you are too small for Strategic Planning?

Think you don’t have time for a structured approach to your business future?

Think Again!!

If you’re the owner of a small or very small business, you probably do not have a plan that addresses the hurdles that block your ability to achieve or even exceed your expectations for your business. Do you have a truly clear view of what you can do to make a leap in performance? If not, then success will be as much a matter of luck as anything else. Are you really comfortable with that? Are you willing to trust your and your family’s livelihood to luck?

Small and very small businesses typically have much less margin for error than their larger customers and competitors. You have smaller cushions of cash. There are lower costs of entry for hungrier competitors. And you need to be sure that you get the biggest bang for the bucks invested in your limited resources to assure that the business not only stays alive, but thrives.

The lack of strategic planning is common among smaller firms for the following reasons:

Strategic planning is not a function that the owner(s) / manager(s) are either familiar or comfortable with.
Daily operational concerns have a higher priority and, therefore, leave little, if any, time for looking into the future.
Owners often believe that planning is too time-consuming and not results-oriented.
Many small business owners have ineffective priority-setting processes.

You need to recognize the fact that you must be working on your business rather than just in your business. Savvy entrepreneurs have always known this. You must understand that success is not a matter of working harder, but rather working smarter, by developing a plan and executing it well. Businesses which fail to plan will lag behind their more strategic competitors, and are in real danger of being put out of business.

You should consider spending at least 5 to 10 hours per month outside of your office, without interruptions, scanning your environment, “spying” on your competitors, understanding trends, looking for disruptive (game-changing) products and services, developing strategies and action plans to take your business to the next level.

Never lose sight of the need for profitability in your business. Yes, your business likely exists for additional reasons as well. Some of you love the work you do. Others feel your business is exciting and fulfilling.

But the fundamental reason a business exists is to make a profit, and the easiest and most predictable path to profitability is through a winning strategy.

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[Via Weight Loss]

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