Many owners of small businesses often question the need for strategic planning for the growth of their enterprises. Most of these entrepreneurs are under the assumption that the necessity of preparing and executing such schemes is solely for the large corporate enterprises operating in the marketplace. However, it is important for these businessmen to realize that if they want to expand their operations and reach out to a larger customer base, such strategic growth plans are essential. These schemes provide them with a road map on how to achieve their business objectives and become a prominent player in the environment, in which they operate.
What is strategic growth planning?
Steve Sorensen , a prominent business leader and strategist says strategic planning involve the task of developing and executing a blueprint that a business enterprise will follow over a certain period. For entrepreneurs of small businesses, such a plan can be only for a distinct part of their enterprises such as preparing an effective marketing strategy. Different commercial organizations employ diverse time frames for devising such policies depending upon the market environment in which they conduct their activities. Such periods normally depend on how fast the industries in which these enterprises are operating in are evolving in such markets.
He goes on to explain that the basic function of a strategic growth plan for any business enterprise is to assert its purpose in the market in which it conducts its operations. This includes the goals that its entrepreneurs intend to achieve the next five to ten years and how they propose to expand their customer base. Such schemes tell these businessmen where they want to lead their businesses and how to reach that destination. Without such growth plans, they are most likely to move forward blindly without any prospect of achieving their business objectives. Any effective growth strategy for a commercial organization needs to include following critical elements:
- Business Purpose;
- Organizational objectives of the enterprise:
- A plan for achieving the goals of the business organization;
- Schemes to effectively to execute this strategy: and
- Methods to monitor the implementation of the plan
Why prepare and execute a strategic growth plan?
Strategic planning for a small commercial establishment does not need to be as elaborate as large corporate entity. However, it is important for such businessmen to strike favorable agreements with their suppliers, clients employees and investors. In addition to this, it is essential for them to do their homework on their competitors in the market in which they conduct their activities.
Steve Sorensen further clarifies that as a small business enterprise expands the scope of its operations in the market, it will face difficulties. In such situations, it is important for the entrepreneurs of such organizations to look at their strategic growth plan. Such a scheme will help to remain of the core values of their businesses along with its mission in the marketplace. It will go a long way in helping to divert their energies in taking firm decisions whenever their businesses face an obstacle in the short and long run!