Every business large and small is impacted by a number of factors within the market, lifecycle and general conditions of the entity itself. Although the strategic planning process is rarely used by small and mid-market companies it is arguably more critical to the success and viability of the entrepreneurial endeavor. Business owners tend to think in the near or short term hence creating an environment that tends to be reactionary as opposed to proactive or planned. This ultimately creates a number of issues within the business that denigrate profit, cash flow, growth, and organizational efficiencies.
- Profit erosion over a period of years
- Stagnant growth cycle for 12 to 18 months or more
- Limited return to ownership or return on investment. “RTO/ROI”.
- Complacency in the organization. The “paycheck” mentality.
Strategic Planning is critical to break the cycle and encompasses a number of factors both internal and external to every business. Regardless of the age of the business re-defining who we are, what we do, and how do we excel in simple terms. The process inspires the business owner to ask many of the tough questions surrounding the core issues above and implementing both a plan and a call to action from within the organization. The graphic to the right represents a process by which business owners can capitalize on Strengths and Opportunities, but more importantly minimize or eliminate the Weaknesses and Threats internal and external to their organization.