What is the difference between a business plan and a strategic plan?
Weeks before, we mentioned the importance of having a business plan no matter the size of your company. This week we are bringing you a new concept, the strategic plan. You are probably wondering, what’s the difference between them.
A business plan should focus on the viability of the business, and describe your company, the foundations, your industry, your market, the revenue and your financial projects; however, the strategic plan should address the current situation of the business, the future goals and the strategies to achieve them.
In other words, a business plan describes a current business or a specific new project. A strategic plan talks about how you want to change your company to grow or be ready for the future.
Key elements of your strategic plan
- Mission, vision and value statements
Define your company, your organization’s vision which means where you want to be in the future and your mission statement, indicating how you will get there.
- SWOT analysis
- Business goals and action plan
- KPIs
A SWOT analysis is one of the most powerful and simple tools you can have. It provides an overview of your business and it helps the business owner identify his/her strengths and weaknesses, as well as any opportunities and threats.
Your objectives represent what you need to concentrate on in order to make your vision a reality.
A 12-month action plan that lists specific initiatives, who will carry them out, and a timeline for doing so.
Selecting the right KPIs to track the progress is one of the key elements of a strategic plan. Without them, you won’t know until it’s too late whether or not you’re succeeding in your vision.
Larger companies are more likely to engage in strategic planning, not because it is more relevant for them but because small businesses are more strained for resources than larger companies. But regardless of size, every entrepreneur should find time to plan the future of their company.
We exist to offer accessible expert advice to businesses who need it the most, so if you don’t have the time, or the resources contact us, and we can help you!
