Strategic Business Planning

By Mike DuBose

There was a time when I thought that a small business did not need a written strategic business plan. After 25 years of inventing, starting, managing, leading, succeeding and failing in the small business world, I know now that I was wrong!  A plan is important because it brings everyone in an organization together to develop a roadmap that:

• Provides a future vision and purpose.
• Explains who we are and who we want to be.
• Illustrates how we work with our customers and who they are.
• Defines products and services we will provide and our geographical target area.
• Depicts our values and work culture.
• Outlines where we are going and how to get there.
• Documents specific key indicators of accountability so we can measure our progress and know when we arrive.

For advice on developing a plan, run a Google search for "small business strategic plans" or try the Small Business Administration's site (www.sba.com). Find a simple strategic planning book on that contains common sense information, or use computer software that will take you through the process. Remember to find the method that meets your organization's needs.

Before you write your plan, read about your industry and competitors. Go to a relaxing place for several days to think reasonably about where your business is going and how to get there.

Then, get away with your team to a fun environment to debate and conceptualize together, but don't schedule your planning around intense workload times. The leader must send the clear message that strategic planning must be done, while remaining sensitive to the staff's needs.

I suggest that you bring in a wise, competent strategic planner who will tactfully challenge you while standing outside your circle. You will have to curb your ego and allow the facilitator to ask tough questions about where staff members want to go. But in the end, you will have to make the final decisions, since you cannot run a company like a democracy.

Check references to make sure the consultant will fit into your organization's culture. Above all, make sure your team, not the consultant, drives your planning so that your employees can own and implement the process by themselves.

Write the plan on a high school reading level so it is understandable to everyone. If you are trying to secure company funding, your banker will want evidence of balance sheets, assets, income statements, budgets, cash flow predictions, customer contracts, etc. One basic plan should be developed for everyone, with attachments included for different audiences.

Before you finalize your plan, circulate it among all employees so you can talk through the issues together. The more input you solicit, the more choices you will have to select from. Aim high, but be conservative on income projections and liberal on expenses. My philosophy is to "under-promise and over-deliver" in everything we do. As Larry Bossidy, author of the bestseller Execution, told me, "There are many heroes out there who developed unrealistic and grandiose plans that failed!"

The final plan may be only a few pages long, but should not exceed 25 (excluding appendices). Have a good writer tighten up the grammar and word flow. A person who has no knowledge about your business should be able to clearly understand the message. The plan should be reviewed with staff every month and kept in the forefront of your company's activities. Stick with the plan unless new information emerges that calls for changes. You don't want a new plan coming out every week!

Finally, assign the plan to a highly organized, can-do, pleasant person who will monitor the outcomes and direction and ensure it gets done.

At the end, everyone should be able to say, with passion, clarity, ownership and excitement, "I know where we are going and how to get there! Let's go!"

For the full version of this article, please visit http://www.mikedubose.com/pdf/strategic_planning.php.
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Mike DuBose is a field instructor with USC's graduate school and has been in business since 1981. He is the servant leader and owner of six debt-free corporations, including Columbia Conference Center, Research Associates and The Evaluation Group. Mike is writing his book The Art of Building a Great Business, to be released in late 2008. For more articles on how to create a great business, visit www.mikedubose.com.