What is Strategic Planning?

10th May, 2010

Strategic planning is the development of an overall business mission that clearly states the purpose and future direction of the business.

It involves the setting of personal and business goals that are realistic and measurable whilst being consistent with the overall business mission.

- to grow! 99% of businesses state that one of their missions is to grow and develop. If you do not plan you will b e a "survivor" and generally only a short term survivor

- planning ensures a far more efficient use of limited resources

- planning provides a blue-print for growth

- planning provides your staff with direction and motivation

- planning allows you to anticipate what you want to happen and to identify in advance what pitfalls may arise

- planning sets out a clear path to match your goals and ambitions against resources and performance

- planning forces you to examine and develop ideas and thoughts - this will help you decide whether the return will justify further time being spent on them

- planning forces an analysis of your activities versus those of your competitors and identifies subsequent opportunities and weaknesses that exist

- planning helps to generate an array of facts, rather than words, which can be followed and monitored

- planning provides a benchmark against which you
can measure, compare and evaluate performance in the future

- planning for succession

- business plans are increasingly becoming an essential tool for banks, lenders, shareholders, and other parties to evaluate effectively a business' economic viability, or investment opportunity and projected growth path. More