Thursday, June 24, 2010

Is Strategic Planning Necessary?

"My business is small to medium in terms of revenue and staffing but has the opportunity to be much larger. Do I really need to develop a full strategic business plan?"

The best response to this question is, "Only if you want to stay in business and prosper." Consider the following reasons for strategic planning.

Competition is becoming tougher. In most cases, businesses your size find themselves competing with much larger companies, ones that know the benefits of strategic planning and practice it. From a defensive standpoint, it is important that you apply the same concepts to your operation.

Good financial control alone is not enough to ensure your business's success. In addition to a budget, you need long-term goals and plans to determine the future direction of your company.

Technology and the fast pace of change are making business management more complex. Strategic planning will help you foresee and react quickly to market changes and opportunities and identify areas in which your business is lagging behind.

You can use strategic planning to involve employees in all areas of your business, so they share your goals.

You can use your plan to communicate with bankers, who often do not understand the nature of your business. Bankers must be convinced that your company is in control of its future before they will lay their money on the line. A comprehensive plan, aimed at sustained growth in sales and earnings, can be very convincing.

As we work with our clients we have found that sound strategic planning provides the following benefits:

• Provides strategic direction to the entire company.

• Translates corporate objectives into actionable plans.

• Causes alignment, prioritization and focus.

• Allows clear simple communication throughout the organization.

• Provides resource optimization.

• Assigns responsibilities and timelines.

• Enables forecasting of revenues and expenses.

And most importantly, it DRIVES RESULTS.

Contact us if we can help.



John MaverPresidentMaver Management Group(925) 648-7561Maver Management
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