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Key Components of a Strategic Business Plan

By Analytix Editorial Team

October 26, 2017 0 Comments
Key Components of a Strategic Business Plan

Having a strategic business plan in place is important for a business focusing on long-term goals, including growth and expansion. However, it is not uncommon for business owners to get caught up in everyday operations, including firefighting, and lose sight of the long-term vision. Fortunately, a strategic business plan can help guide a company through changing priorities and circumstances to emerge successful and profitable.

There is no single way of creating a business plan; it varies depending on the business and the industry the business operates in. Some strategic business plans also contain company description and details of what the business plans to deliver in the form of services or goods in great detail. In some cases, competitor information and market analyses are also included, alongside information on how operations and executions may be planned. A strategic business plan will thus be a customized document.

There are however, some key components to every business plan:

Vision Statement:

The vision statement covers the chief elements of the business endeavor. It will encompass the present as well as the future of the business.

Mission Statement:

The mission statement needs to cover the philosophy of the business while expressing its purpose and the resolve to meet this purpose. In doing so, the mission statement also embodies the values of the business.

Values:

Putting down the company’s values in a written form helps employees understand their deliverables better. Apart from holding the business through difficult times, a value set outlined in a strategic business plan has several other uses:

  • Setting and achieving targets
  • Dealing with competitors and sustaining a competitive edge
  • Helping set standards for customer service; ensuring customer satisfaction
  • Helping take the company forward on the growth curve

Goals and Objectives:

Goals and objectives bring into focus the short and long-term goals for the business. This section also outlines timelines and efforts towards meeting these. The goals and objectives will usually take into account the vision and mission statements, helping employees work together in a coordinated manner.

Identifying critical elements such as Strength, Weaknesses, Opportunities, and Threats (SWOT analysis) can help create realistic goals. Strategic goal-setting can also follow the SMART analysis, an acronym for Specific, Measurable, Agreed Upon, Realistic, Time-Based strategic goals.

Setting goals and objectives helps businesses set down a framework to face and address growth plans, including unexpected challenges. Goal setting can help in moments of crisis, helping employees adapt to change without affecting the long-term growth goals.

Execution:

This section provides clarity on how goals and objectives will be achieved. The execution is decided-upon through brainstorming and free discussions from people within the business to reach on agreed-upon outcomes for strategic objectives. More importantly, when more people from the business are involved in creating strategies for goal execution, it creates an environment conducive to buy-in.

Execution plans propel goals and plans forward. They outline accountability while providing employees with a sense of inclusion and belonging.

Analytix Solutions has helped many businesses perform better through insightful planning and strategic goal setting. If you would like to learn more about creating a strategic business plan, please email us at [email protected] or call us at 781.503.9002.

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