Many business owners operate without a clear strategic plan, yet research from The Alternative Board (TAB) shows that companies with strong plans are more likely to see increased profits and revenue. However, only 40% of business owners rate their strategic plans as “good.” To bridge this gap, TAB outlines a four-step process tailored for small businesses, emphasizing flexibility, clarity, and execution.
Why Strategic Planning Matters for Small Businesses
Unlike large corporations, small businesses need agile, actionable plans—not polished reports for investors. A good strategic plan:
- Clarifies vision, goals, and progress tracking
- Aligns teams and boosts accountability
- Helps capitalize on opportunities and mitigate risks
The 4-Step Strategic Planning Process
1. Define Your Vision, Mission & Values
Start by revisiting (or creating) your core business identity:
- Vision: What is your long-term aspiration?
- Mission: Why does your business exist?
- Values: What principles guide decisions?
Avoid jargon—use authentic, meaningful language that resonates with your team.
2. Conduct a SWOT Analysis
Assess Strengths, Weaknesses, Opportunities, and Threats to identify:
- Competitive advantages (e.g., strong customer relationships)
- Areas for improvement (e.g., outdated processes)
- Growth opportunities (e.g., untapped markets)
- Potential risks (e.g., economic shifts, competition)
3. Set SMART Goals & Prioritize
Limit goals to 3-5 key priorities to avoid dilution. Use the SMART framework:
- Specific, Measurable, Achievable, Realistic, Time-bound
Examples include: - Financial: Increase revenue by 15% in 12 months
- Operational: Streamline inventory management
- Personnel: Improve employee retention
Engage employees by showing how their roles contribute to these goals.
4. Execute & Maintain Accountability
Break goals into actionable tasks with deadlines:
- Assign clear responsibilities
- Schedule quarterly reviews to track progress
- Adapt the plan as market conditions change
A “deadline culture” ensures follow-through. As TAB member Michael DeBaere notes, “You get what you tolerate”—holding teams accountable drives results.
Final Takeaway
Strategic planning is not a one-time exercise but a dynamic process that keeps businesses focused and adaptable. By following these steps, small business owners can clarify their direction, align their teams, and achieve sustainable growth.
Next Step: Start with a SWOT analysis, define 1-3 top goals, and assign immediate action items to build momentum.