A lot of business owners know about the benefits of strategic planning, especially when they see their competition using it and growing. But, many do not know if it will help their company.
One common question business owners ask is, ‘Can it really help me and my particular situation?’
It can help you, and your company, become and stay successful. There are many benefits to strategic planning, here are just a few.
• It can stabilize your business – you will become proactive rather than reactive. It lessens the likelihood that you will be a victim of unforeseen circumstances, an unpredictable economy, and poor paying clients.
• Planning defines realistic, measurable goals and objectives. It gives you, and everyone else, a clear way to reach them.
• A strategic approach can finally turn your good ideas into money-making products.
• It greatly increases the odds that your business will survive long term – based on skill, best practices, and good management rather than luck.
• Increased market share, quality, productivity, sales, customer satisfaction, profitability, ability to withstand competition, problem-solving skills, and financial control.
• Stops or reduces rework, self-inflicted problems, employee dissatisfaction and difficulties, unprofitable service lines, bad debt and poor inventory control.
Another question business owners ask is, ‘Is strategic planning as important to my business as everyone says it is?’
This might surprise you.
No, strategic planning is not as important as some people say it is. It is not a magic wand or a silver bullet. In fact, strategic planning without strategic management is almost worthless. A plan is only as good as the people who implement it.
Plans cannot and will not take the place of good management. They are made to supplement, structure, inform and strengthen leadership, but are not a substitute for it. You can have an excellent plan, which will provide you with all the benefits mentioned above. But, if it is ignored, poorly executed or sabotaged it can do more harm than good.
Strategic planning, coupled with strategic management, is invaluable to any size company. They are the pathway to success – with proper planning and the right people you can reach or exceed any dreams you have.
At Cogent Analytics, we never stop looking for ways to improve your business and neither should you. So, check out some of our other posts for helpful business information: