This is a 2 part series. Go here for part 2: Strategic Planning is For Small Businesses Too – Part 2
Too many people falsely believe that strategic thinking, formulation and implementation is only for the big outfits…you know, the Toyotas, Microsofts, Honeywells, Nokias, and the Exxon Mobils. Our experience, working closely with people from all walks of life and from all sizes of organization, suggest the opposite is true — smaller organizations need to be more devoted to strategic thought and action as much or more than the big players out there.
The most important strategic thing a small organization can do is prepare to do battle with the future, which entails five steps.
- Step 1: Anticipate both threats and windows of opportunities for the vision and mission of the business.
- Step 2: Decide how to respond to these emerging threats and opportunities.
- Step 3: Identify the source which those risks and opportunities will come from.
- Step 4: Figure out when the risks will hit or if the opportunity is truly valuable.
- Step 5: Execute actions to mitigate the threats or take advantage of the opportunities.
Again, let us emphasize that for practical purposes you don’t need to create a doctoral dissertation when implementing strategy. Strategic planning for a small business doesn’t have to be as formal, as long, or as detailed as with a large company. The most important thing to do is strike up a dialogue with your customers, employees, vendors, investors, and do your homework about your competitors. It helps to talk about your strategy with a partner, advisor, or trusted consultant to bring some clarity and focus to your mind around the strategic issues that could affect your business in the future. The biggest disservice a small business leader can do for an organization is be unprepared or surprised by unfolding events. Even if you simply think things through in your mind and then briefly share your strategic ideas or decisions with your employees, you will be ahead of the curve and helping people to understand how they can connect with your strategy.
Look for a special extended podcast next in Part 2 that covers both parts of this 2 part series.
