Creating a Business Strategy

On a scale of one to ten, having a good businessobjectives you plan to accomplish this year that will
strategy rates about a fifteen!lead you closer to your long-term goals. Remember
No matter what kind of business you have --to be "SMART" when setting your annual goals
whether you sell products or a service, as the saying(Specific, Measurable, Attainable, Realistic, and
goes, "if you fail to plan, then you're really planning toTime-oriented). Include a list of the barriers that are
fail."stopping you from getting where you want to go.
Creating a strategy can mean the differenceFigure out what resources you've already got, and
between you working 60 to 80 hours a week allwhat resources you need to get you past those
year long -- and then breaking even, or worse, losingbarriers. And then create an action plan that clearly
money.lays out how you will achieve your goals. Involve key
On the other hand, many successful entrepreneursemployees with this part of the planning process.
who have a strategy work fewer hours and make5. Create a set of milestones or benchmarks. This is
piles of money -- and they usually attribute theirvery important, so that you can measure your
success to having a strategic plan and following it.progress.
So what is strategic business management? Very6. Share the plan with your employees, and anyone
simply, it's the process of defining the goals andelse who will be involved in the process. Your annual
objectives for your business, creating an action planstrategy is the roadmap that will make sure
so you can reach them and then following the plan.everyone ends up at the same destination -- but to
How do you create a strategic plan for yourbe effective, everyone needs the same map!
business?7. Put the plan into action. Now that you have the
1. First, know what your vision for your company is.roadmap, it's time to begin the journey.
If there were no barriers, nothing stopping you from8. Check your progress. Just like any trip, you need
taking your company as far as you could -- whatto check the map every now and then; to be sure
would that look like?you're still on the right road. If something isn't
2. Next, what are your company's core operatingworking, the sooner you figure it out and make the
values? What are its guiding principles? In othernecessary adjustments, the sooner you'll be back on
words, why are you in business and how do you dotrack.
business?9. Follow the same cycle next year. (Dream, Plan,
3. Now create a 3 to 5 year plan. Your long-term planAct, Check).
is based on the broad objectives that will help youCreating a business strategy and following it will
get from where you are now, to where you want toensure that you enjoy the journey as much as
be.getting to your final destination.
4. Develop a plan for this year. These are the specific