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What is a strategic plan?

Most businesses have some form of Business Plan but this does not necessarily deal with the strategic issues. It may be driven by necessity, perhaps to support a banking proposition, by falling profit or increasing competition. More positively, the Business Plan will be the living document which provides the focus necessary to manage growth.

Although many businesses plan – for the right reasons – very few plan strategically. Usually, this is because the business becomes concerned primarily with the present day to day issues and working ‘IN’ the business.

A strategic plan is one which looks beyond the horizon, one which stands back from the operational demands and the budgets of today and tomorrow to consider what it is that must be worked ‘ON’ to achieve the business objectives.

Strategic planning is not easy. There are many guides on how to prepare a Business Plan but strategic planning requires different skills and there is less practical help at hand.

We deal with small and medium sized enterprises the majority of which are owner-managed businesses. As you would expect, the strategic direction of such businesses is closely tied to the strategic direction of the owners. Unfortunately, they are usually too busy to stop and think strategically. After all, it is a full-time job, running a business.

This is where we can help. Inevitably, we have experience of hundreds of different businesses. Not only do these vary in size and in the type of products and services they offer, but also in the way they are structured financially and as regards management. We are familiar with the kind of challenges they face and the opportunities they enjoy. We are also familiar with a huge range of different approaches to these challenges and opportunities. Even more usefully, we have knowledge of which ones tend to achieve the desired outcome and which ones will fail.

These alone, however, are insufficient. It is also necessary to gain a full understanding of our clients’ aspirations to enable us to play a part in helping to achieve them. To this end, we are able to provide a forum for discussion of strategic matters, which will often provide the necessary encouragement to take a step back, temporarily set aside the detail, and think strategically. We encourage our clients to formalise their aspirations and document their aims and objectives, and communicate them to us.

The Burton Sweet FAST STRATEGY DAY

We run a FAST STRATEGY DAY which is a facilitated day away from your business reviewing your personal goals and aspirations. The day explores how the personal goals of the business owner manager can be matched to business and an exit strategy. The day looks at supporting Marketing, Operational and Finance strategies and importantly, all attendees leave with a clear action plan regarding what must be implemented to stay on track. Many clients repeat the process a year down the line to check that the plan is still relevant.

From that base, we can then help to explore the approaches to achieving the desired goals.

Example of Strategic Planning Matters

Examples of some of the strategic planning matters we have discussed with clients include: -

• Succession planning: what is the medium to long-term future of the business?
  • Can we sell it and are there likely successors amongst the staff?
  • Can we pass it on to other family members?
  • Should we just run it profitably then close it down when we retire?

• Changes of business direction: can we be more profitable?
  • Shall we diversify or change direction as regards products and services?
  • Are there new geographical markets and what are the challenges?
  • Is it better to contract work out or do it in-house?

• Risk minimisation: how can we reduce the dangers presented by external factors?
  • Should we restructure the capital of the business and reduce or increase gearing?
  • How can we reduce reliance on a small number of customers or suppliers?

• Personalities: can the differing aspirations of the owner-managers be reconciled?
  • Where are the similarities and the differences?
  • Can a structure that suits everyone be created?

The fundamental strength of a company can be related to the development of a Strategic Plan which should incorporate clear objectives for each department together with strategies and tactics to achieve each objective.

ACTION:
If you would like more information or would like to ask us a question then contact your nearest office. To ask us a question online click here.

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