strategy in a business plan

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How to make a business plan

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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How To Write A Business Strategy: Your Four-Step Guide

Tricia Jessee

Tricia manages our implementation and onboarding team to ensure the success of ClearPoint customers.

Here’s a simple guide on how to write a business strategy that works.

Table of Contents

Creating a solid business strategy happens in three parts: 1) understanding where you stand strategically as an organization right now; 2) deciding where you want to be in the future; and 3) determining how you’ll get there. The steps below cover each of these areas, with steps three and four both being part of the final phase.

Jumpstart the strategic planning process with our free, downloadable templates., how to write a business strategy: four steps, step 1: conduct a swot analysis..

The best way to understand your organization’s current state is to conduct a SWOT (strengths, weaknesses, opportunities, threats) analysis. A SWOT analysis provides wide-ranging insights about your company from multiple perspectives. Not only does it reveal where things are going well and where you can improve internally, but it also requires you to evaluate the environment outside your company to understand potential threats and opportunities you can minimize or leverage (respectively) going forward.

To glean these insights, you’ll need to do some information-gathering from your employees, external stakeholders, and even your customers (where relevant). You can read more about how to do a SWOT analysis in this article, but in brief, here are the questions you should ask:

Once you’ve gathered all this information, study it. Identify seemingly significant points, things to follow up on, and trends. Also, look for connections between the areas. For example, some of your strengths may naturally support the identified opportunities, and eliminating certain weaknesses might present additional opportunities.

Step 2: Clarify your mission, vision, and values.

Next, with your SWOT insights in mind, you can begin thinking about where you want your company to go. This direction should be reflected in your organization’s mission and vision statements. A mission statement articulates your purpose—why the organization exists and the value of the product or service it provides. A vision statement clarifies the direction in which your organization is headed by stating the outcomes you expect to achieve in the near future.

Another element to consider is your core values; these define your organization’s fundamental beliefs and practices.

All of these elements are a foundational part of your organizational structure, and form the linchpin of your strategy.

The SWOT analysis you completed in Step 1 is helpful because it serves as an objective assessment of your company—what you’re good at and your weaknesses. Knowing this information will help you formulate realistic goals, and create a plan that the organization is reasonably prepared to execute. Without those insights, it’s possible you could be busy developing a business strategy that’s categorically beyond your reach.

Another way of articulating your strategy is with an OAS statement:

• Clarify your organization’s objective, or the reason you exist.
• Clarify your advantage, or how you do things differently, better, or more efficiently than competitors.
• Clarify the scope —what you’re doing (and not doing) to achieve your objective.

Step 3: Select a strategy management framework.

Before you begin to write a business strategy, choose a strategy management framework to hold it all together.

A strategy framework brings structure to your plan, connecting your projects and initiatives with the outcomes you hope to achieve. It serves as support for your organization’s daily activities, and makes your priorities clear to everyone involved. Think of it as the master plan for your strategy, unifying all activities organization-wide.

There’s no shortage of frameworks to choose from, including (our favorite) the Balanced Scorecard (BSC), Theory of Change (TOC), and Objectives and Key Results (OKRs) .

Step 4: Develop your five-year plan with SMART measures and objectives.

Now that you know where you’d like to go, it’s down to the details of creating a business strategy—what can you do that will get you there? Note that the framework you’ve chosen may use specific terminology, but you’re still essentially going through the same exercise: clearly identifying high-level goals and performance measures .

Using the Balanced Scorecard as an example:

• You’ll create objectives, which are high-level organizational goals. To do this, focus on what your organization is trying to accomplish strategically. A very general example of an objective would be “Become an internationally-recognized brand.” Organizations using the BSC typically create 10 to 15 strategic objectives .
• You’ll create measures, which help you understand if you’re accomplishing your objectives. Using the above example, a measure would force you to answer the question, “How do I know that I’m becoming an internationally recognized brand?” Create one to two measures per objective. Also known as KPIs, measures use the process of measurement to help you understand what you can influence and which actions you can take. (Note that these might change if you discover over time that a particular measure is not accurate.)
• You’ll set targets for your measures. By setting targets, you’ll be able to see whether or not you’re on track to meet your specific goals.

In ClearPoint, you can structure your plan with common elements, creating linkages (as many as needed) to show alignment. You can also customize the terminology you use to match the framework you’re using.

Tip: Use the SMART framework to create objectives.

SMART is an acronym for specific, measurable, attainable, realistic, and timely. This methodology will guide you in creating goals that are clear and achievable. Each objective you create should be:

• Specific: Goals should be well-defined and explicitly state who, what, when (see “Timely,” below), where, and why.
• Measurable: Goals should be quantitative and number-oriented.
• Attainable: Goals should be feasible given your organization’s capabilities and resources.
• Realistic: Goals should be realistic given the external environment and your company’s current stage of growth.
• Timely: Goals should have an end date, and, if applicable, dates for completion of various phases.

What happens after you write a business strategy? How To Complete The Strategic Planning Process

Learning how to write the business strategy itself is only part of the strategic planning process. Once you’ve created your plan, there are a few more steps to complete in order to set yourself up to execute it successfully.

Execution is the most difficult part of strategy. It’s easy to generate excitement around the initial writing of a plan; the hard part is sustaining momentum over the space of three to five years. Doing the following as part of the planning phase will put you in the best possible position as you begin strategy implementation:

Communicate your plan organization-wide.

No matter how good your business plan is, it won’t work if your co-workers at the executive, management, and employee levels don’t know how to contribute to it, or if they simply don’t know about it. That’s why you need to create a strategy communication plan that builds awareness.

A strategy map is a visual representation of the things your organization must do well in order to execute its plan successfully. It is easy to understand and share. For more ideas on how to communicate strategy effectively, read this article.

Set up a way to measure your results.

To know if you’re making progress, develop a plan to report on your strategy regularly. The best way to do that is with strategy reporting software like ClearPoint. ClearPoint bridges the gap between strategy creation and execution, helping you to maintain focus on the big picture (your objectives) while managing all the operational pieces that will bring it to fruition.

In ClearPoint, you can work within the framework of your choice (Balanced Scorecard, OKRs, etc.) and focus on the data that drives results.

ClearPoint users are more likely to achieve their goals because they can:

• Clearly see how measures and projects align with objectives
• Spot trends and learn the key influencers of outcomes
• Understand how all departments contribute to the organization’s goal

In addition, they are more likely to stick with strategy execution for the long haul because they can:

• Automate data collection and report generation , removing the burdens traditionally associated with manual reporting
• Keep conversations continuously centered around strategy, using ClearPoint as a guide
• Provide open access (if desired) to progress data to keep employees informed and motivated

Developing a business strategy is only a prelude to the hard work entailed in putting it to work. But with preparation and the right tools, you have a very good chance of being the kind of organization that actually accomplishes what it sets out to do. If you want to talk more about how ClearPoint can help, please reach out.

What are the different types of business strategies?

Different types of business strategies include:

- Growth Strategy: Focuses on expanding the company’s market share, product line, or geographic reach. - Cost Leadership Strategy: Aims to become the lowest-cost producer in the industry to attract price-sensitive customers. - Differentiation Strategy: Involves offering unique products or services that stand out from competitors. - Focus Strategy: Concentrates on serving a specific market niche, either through cost focus or differentiation focus. - Innovation Strategy: Emphasizes creating new products, services, or processes to gain a competitive edge. - Sustainability Strategy: Integrates environmental and social considerations into the business model to meet the needs of present and future generations.

How can I conduct a SWOT analysis for my business?

To conduct a SWOT analysis for your business:

- Identify Strengths: List internal strengths such as strong brand reputation, skilled workforce, proprietary technology, and robust financial health. - Identify Weaknesses: List internal weaknesses such as limited resources, outdated technology, or gaps in capabilities. - Identify Opportunities: List external opportunities such as market growth, emerging trends, technological advancements, and regulatory changes. - Identify Threats: List external threats such as competition, market volatility, economic downturns, and changing customer preferences. - Analyze and Prioritize: Analyze the items in each category and prioritize them based on their impact on your business.

How can I clarify my mission, vision, and values?

To clarify your mission, vision, and values:

- Define Mission: Articulate the purpose of your business, what it does, who it serves, and how it serves them. It should be clear and concise. - Define Vision: Outline your long-term aspirations and what you aim to achieve in the future. It should be inspiring and forward-looking. - Define Values: Identify the core principles and beliefs that guide your business’s behavior and decision-making. They should reflect your company culture and ethics. - Engage Stakeholders: Involve employees, customers, and other stakeholders in the process to ensure alignment and buy-in. - Communicate Clearly: Ensure the mission, vision, and values are communicated clearly across the organization and incorporated into all strategic planning.

What are some different strategy management frameworks?

Different strategy management frameworks include:

- Balanced Scorecard: A framework that balances financial and non-financial performance measures across four perspectives: financial, customer, internal processes, and learning and growth. - SWOT Analysis: A tool for identifying strengths, weaknesses, opportunities, and threats to inform strategic planning. - Porter’s Five Forces: Analyzes the competitive forces within an industry to understand its attractiveness and potential profitability. - PEST Analysis: Examines the external macro-environmental factors (Political, Economic, Social, Technological) that could impact the organization. - OKR (Objectives and Key Results): A goal-setting framework that defines clear objectives and tracks the outcomes to measure progress. - Growth-Share Matrix: Helps businesses prioritize their product portfolio based on market growth and market share.

How can I develop a five-year plan for my business?

To develop a five-year plan for your business:

-Set Clear Objectives: Define long-term goals that align with your mission and vision. - Conduct a SWOT Analysis: Assess your business’s strengths, weaknesses, opportunities, and threats to inform strategic decisions. - Define Key Initiatives: Identify the key initiatives and projects needed to achieve your objectives. - Create Action Plans: Develop detailed action plans with timelines, resources, and responsibilities for each initiative. - Allocate Resources: Ensure you have the necessary resources (financial, human, technological) to support your plans. - Establish KPIs: Set key performance indicators to measure progress and success over the five-year period. - Review and Adjust: Regularly review the plan and make adjustments based on performance and changing external conditions.

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How To Write A Strategic Plan In 6 Steps + Examples

Gone are the days of rigid, 5 or 10-year planning cycles that don't leave room for flexibility and innovation. To stay ahead of the curve, you need a dynamic and execution-ready strategic plan that can guide your business through the ever-evolving landscape.

In this article, we'll show you how to write a strategic plan in 6 simple steps . By the end, you'll have a comprehensive, actionable strategic plan that will help you align your organization on the path to success.

💡Pro tip : Use our customizable, free Strategic Planning Template that includes all the key elements of a strategic plan to streamline your strategic planning process.

Follow this guide step-by-step, or skip to the part you're most interested in:

• Pre-Planning Phase: Build The Foundation
• Key Elements of a Strategic Plan

How To Write A Strategic Plan In 6 Simple Steps

Develop an iterative strategic planning process, 3 strategic plan examples to get you started, how to achieve organizational alignment with your strategic plan.

• Quick Overview of Key Steps In Writing A Strategic Plan

Create An Execution-Ready Strategic Plan With Cascade 🚀

Before jumping into the planning phase, it's essential to lay the groundwork.

Pre-Planning Phase: Build The Foundation 

Your strategic planning process should start well before you write your strategic plan. The pre-planning phase is crucial for gathering the data and strategic insights necessary to create an effective plan.

1. Conduct Strategic Analysis

Strategic analysis is a crucial step before writing your strategic plan. It's like building a house – you wouldn't start constructing the walls without a strong foundation, and the same goes for strategic planning. It equips you with the knowledge and insights to create a strategic plan that is well-targeted, addresses your actual situation, and positions your organization for success.

Use a strategic framework like GAP analysis , SWOT analysis , Porter's Five Forces , Ansoff matrix , McKinsey 7S model , or GE matrix to structure your analysis sessions. Incorporating a risk matrix can also help align and decide on key strategic priorities.

Additionally, consider running a strategic planning workshop with your team. Co-creating the plan with stakeholders is a significant advantage, as it fosters a sense of ownership and increases the likelihood of successful strategy execution . According to McKinsey , initiatives where employees contribute to development are 3.4 times more likely to succeed .

2. Choose your strategic planning model

Before creating your strategic plan, decide on the structure you will use. There are hundreds of ways to structure a strategic plan. You've likely heard of famous strategic models such as OKRs and the Balanced Scorecard .

But beyond the well-known ones, there's also a myriad of other strategic planning models . However, many models that work well on paper often fail to meet organizational needs in practice.

Common issues with many models include:

• Complexity: People get lost in terminology rather than focusing on execution
• Scalability: They work well for small organizations but fail when extended across multiple teams
• Rigidity: They force unnecessary layers, hindering flexibility
• Lack of measurability: They state outcomes well but fail to help measure success
• Adaptability: They don’t adjust well to changing economic landscapes

Our goal is to provide a simpler, more effective way to write a strategic plan. The Cascade Strategy Model , refined over years of working with +20,000 teams, offers a proven approach to strategic planning that is adaptable, scalable, and effective for organizations of all sizes.

In the following sections, we'll explore the key elements and steps to write a strategic plan based on the Cascade Model.

Key Elements Of A Strategic Plan

The key elements of a strategic plan using the Cascade Model work together to create a clear and actionable roadmap for your organization.

Think of it as a step-by-step guide, where each element builds upon the previous one: 

• Vision: Where do you want to get to? 
• Values: How will you behave on the journey? 
• Focus Areas: What are going to be your strategic priorities? 
• Strategic objectives: What do you want to achieve? 
• Actions and projects: How are you going to achieve the objectives? 
• KPIs: How will you measure success?

These interconnected elements ensure everyone in your organization is aligned on your overall strategy . Above all, the Cascade Model is intended to be execution-ready—in other words, it has been proven to deliver success far beyond strategic planning.

To create a powerful strategic plan, follow this clear, step-by-step process using the Cascade Model.

💡 Pro Tip : If you want to follow along as we cover each step, you can use our Strategic Planning Template spreadsheet (Excel format), or, for the best experience, sign up for instant access to our free Strategic Planning Template in Cascade .

Your vision statement is your organization's anchor - it defines where you want to get to .

A good vision statement can help funnel your strategy towards long-term goals that matter the most to your organization, and everything you write in your plan from this point on will help you get closer to achieving your vision.

Trying to do too much at once is a surefire way to sink your strategic plan. By creating a clear and inspiring vision statement, you can avoid this trap and provide guidance and inspiration for your team.

For example, a bike manufacturing company might have a vision statement like, “To be the premier bike manufacturer in the Pacific Northwest.” This statement clearly articulates the organization's goals and is a powerful motivator for the team.

In short, don't start your strategic plan without a clear vision statement. It will keep your organization focused and help you navigate toward success.

📚 Recommended read: How to Write a Vision Statement (With Examples, Tips, and Formulas)

Alongside your organization’s vision, a well-crafted mission statement is essential. It succinctly defines your purpose, culture, goals, and values, serving as a foundation for your strategic plan. Ensure your mission statement is clear and aligns with your organization’s vision to drive cohesive and effective strategies.

Values are the enablers of your vision statement —they represent how your organization will behave as you work towards your strategic goals.

Make sure to integrate your organization's core values into everyday operations and interactions. In today's highly-competitive world, it's crucial to remain steadfast in your values and cultivate an organizational culture that's transparent and trustworthy.

Companies with the best company cultures consistently outperform competitors and their average market by up to 115.6%, as reported by Glassdoor . 

For example, a bike manufacturing company might have core values like:

• Accountability

These values reflect the organization's desire to become the leading bike manufacturer, while still being accountable to employees, customers, and shareholders.

👉 You can create and add your values, mission and vision statements directly in Cascade . This ensures your company's core principles remain top of mind for everyone.

📚When you're ready to start creating some company values, check out our guide, How To Create Company Values .

3. Focus Areas

Your focus areas are the strategic priorities that will keep your team on track and working toward the company's mission statement and vision. They represent the high-level areas that you need to focus on to achieve desired business outcomes.

In fact, companies with clearly defined priorities are more likely to achieve their objectives. According to a case study by the Harvard Business Review , teams that focus on a small number of key strategic initiatives are more likely to succeed than those that try to do too much. 

Rather than spreading your resources too thin over multiple focus areas, prioritize three to five. 

Following our manufacturing example above, some good focus areas include:

• Aggressive growth
• Producing the nation's best bikes
• Becoming a modern manufacturer
• Becoming a top place to work

Your focus areas should be tighter in scope than your vision statement, but broader than specific goals, time frames, or metrics. 

With a clear set of focus areas, your team will be better able to prioritize their work and stay focused on the most important things, which will ultimately lead to better business results.

👉 In Cascade, you can add focus areas while creating or importing an existing strategic plan from a spreadsheet.

With Cascade's Focus Area deep-dive functionality, you will be able to: 

• Review the health of your focus areas in one place
• Get a breakdown by plans, budgets, resources, and people behind each strategic priority
• See something at-risk? Drill down into each piece of work regardless of how many plans it's a part of

📚 Recommended read: Strategic Focus Areas: How to create them + Examples

4. Strategic Objectives

Strategic objectives are the specific and measurable outcomes you want to achieve . While they should align with your focus areas, they should be more detailed and have a clear deadline. 

According to the 2022 State of High Performing Teams report , there is a strong correlation between goals and success not only at the individual and team level but also at the organizational level. Here's what they found: 

• Employees who are unaware of their company's strategic goals are over three times more likely to work at a company experiencing a revenue decline than employees who are aware of the goals 
• Companies with shrinking revenues are almost twice as likely to have employees with unclear work expectations.

Jumping straight into actions without defining clear objectives is a common mistake that can lead to missed opportunities or misalignment between strategy and execution.

To avoid this pitfall, we recommend you add between three and six objectives to each focus area .

It's here that we need to start being a bit more specific for the first time in your strategic planning process. Let's take a look at an example of a well-written strategic objective:

• Continue top-line growth that outpaces the industry by 31st Dec 2023.

This is too specific to be a focus area. While it's still very high level, it indicates what the company wants to accomplish and includes a clear deadline. Both these aspects are critical to a good strategic objective.

Your strategic objectives are the heart and soul of your plan, and you need to ensure they are well-crafted. So, take the time to create well-planned objectives that will help you achieve your vision and lead your organization to success.

👉 Adding objectives in Cascade is intuitive, straightforward, and accessible. With one click, you'll open the objective sidebar and fill out the details. These can include a timeline, the objective's owner, collaborators, and how your objective will be measured (success criteria).

📚 Recommended read: What are Strategic Objectives? How to write them + Examples

5. Actions and projects

Once you've defined your strategic objectives, the next step is to identify the specific strategic initiatives or projects that will help you achieve those objectives . They are short-term goals or actionable steps you or your team members will take to accomplish objectives. They should leverage the company's resources and core competencies. 

Effective projects and actions in your strategic plan should: 

• Be specific 
• Contain a deadline
• Have an owner
• Align with at least one of your strategic objectives
• Provide clarity on how you or your team will achieve the strategic objective

Let's take a look at an example of a well-written project continuing with our bike manufacturing company using the strategic objective from above:

Strategic objective: Continue top-line growth that outpaces the industry by 31st Dec 2023.

Project: Expand into the fixed gear market by 31st December 2023.

This is more specific than the objective it links to, and it details what you will do to achieve the objective.

Actions and projects are where the rubber meets the road. They connect the organizational strategic goals with the actual capabilities of your people and the resources at their disposal. Defining projects is a vital reality check every strategic plan needs.

👉You can create actions and projects easily in Cascade! From the Objective sidebar, you can choose to add a project or action under your chosen objective. In the following steps, you can assign an owner and timeline to each action or project.

Plus, in Cascade, you can track the progress of each project or action in four different ways. You can do it manually, via milestones, checklists, or automatically by integrating with Jira and 1000+ other available integrations .

📚 Recommended read: What are Strategic Initiatives? How to Develop & Execute + Examples

6. Key Performance Indicators (KPIs)

Measuring progress towards strategic objectives is essential to effective strategic control and business success. That's where Key Performance Indicators (KPIs) come in.

KPIs are measurable values that track progress toward achieving key business objectives . They help you stay on track and focused on your organization's strategic goals.

To get the most out of your KPIs, make sure you link them to a specific goal or objective. This way, you'll avoid creating KPIs that don't contribute to your objectives and distract you from focusing on what matters. 

Ideally, you will add both leading and lagging KPIs to each objective so you can get a more balanced view of how well you're progressing. Leading KPIs can indicate future performance, while lagging KPIs show how well you've done in the past.

Think of KPIs as a form of signpost in your organization. They provide critical insights that inform business leaders of their organization's progress toward key business objectives. Plus, they can help you identify opportunities faster and capitalize on flexibility.

👉 In Cascade , you can add measures while creating your objectives or add them afterward. Open the Objective sidebar and add your chosen measure.

When you create your Measure, you can choose how to track it. Using Cascade, you can track it manually or automatically. You can automate tracking via 1000+ integrations , including Excel spreadsheets and Google Sheets . This way, you can save time and ensure that your team has up-to-date information for faster and more confident decision-making.

📚 Recommended reads:

• 10 Popular KPI Software Tools To Connect & Visualize Your Data (2024 Guide)
• ‍ How To Track KPIs To Hit Your Business Goals

Developing an iterative strategic planning process is essential for staying adaptable and responsive to change. This approach involves continuously reviewing and refining your strategies to ensure they remain relevant in a dynamic business environment. Regularly assess your plan's effectiveness, gather stakeholder feedback, analyze performance data, and make necessary adjustments.

This cycle of strategic planning, execution, and evaluation helps identify areas for improvement, fosters innovation, and keeps your organization aligned with its long-term goals. By adopting an iterative strategic planning process, you can navigate challenges more effectively and maintain a competitive edge.

📚 Check out our article Develop An Iterative Strategic Planning Process to dive into this topic

Corporate Strategic Plan 

Following the steps outlined above, you should end up with a strategic plan that looks something like this:

This is a preview of a corporate strategic plan template that is pre-filled with examples. Here, you can use the template for free and begin filling it out to align with your organization's needs. Plus, it's suitable for organizations of all sizes and any industry. 

Once you fill in the template, you can also switch to the timeline view. You'll get a complete overview of how the different parts of your plan are distributed across the roadmap in a Gantt chart view.

This template will help you create a structured approach to the strategic planning process, focus on key strategic priorities, and drive accountability to achieve necessary business outcomes. 

👉 Get your free corporate strategic plan template here.

Coca-Cola Strategic Plan

Need a bit of extra inspiration with your plan? Check out this strategic plan example, inspired by Coca-Cola's business plan:

This strategic planning template is pre-filled with Coca-Cola's examples so you can inspire your strategic success on one of the most iconic brands on the planet. 

👉 Grab your free example of a Coca-Cola strategic plan here.

The Ramsay Health Care expansion strategy

Ramsay Health Care is a multinational healthcare provider with a strong presence in Australia, Europe, and Asia.

Almost all of its growth was organic and strategic. The company founded its headquarters in Sydney, Australia, but in the 21st century, it decided to expand globally through a primary strategy of making brownfield investments and acquisitions in key locations.

Ramsay's strategy was simple yet clever. By becoming a majority shareholder of the biggest local players, the company expanded organically in each region by leveraging and expanding their expertise.

Over the last two decades, Ramsay's global network has grown to 460 locations across 10 countries with over $13 billion in annual revenue.

📚 Recommended read: Strategy study: The Ramsay Health Care Growth Study

✨ Bonus resource: We've created a list of the most popular and free strategic plan templates in our library that will help you build a strategic plan based on the Cascade model explained in this article. You can use these templates to create a plan on a corporate, business unit, or team level.

We highlighted before that other strategic models often fail to scale strategic plans and goals across multiple teams and organizational levels. 

In an ideal world, you want to have a maximum of two layers of detail underneath each of your focus areas. This means you'll have a focus area, followed by a layer of objectives. Underneath the objectives, you'll have a layer of actions, projects (or strategic initiatives), and KPIs.

If you have a single team that's responsible for the strategy execution, this works well. However, how do you implement a strategy across multiple and cross-functional teams? And why is it important? 

According to LSA research of 410 companies across 8 industries, highly aligned companies grow revenue 58% faster and are 72% more profitable. And this is what Cascade can help you achieve. 

To achieve achieve organization-wide alignment with your strategic plan and impact the bottom line, there are two ways to approach it in Casade: through contributing objectives or shared objectives .

1. Contributing objectives

This approach involves adding contributing objectives that link to your main strategic objectives, like this:

For each contributing objective, you simply repeat the Objective → Action/Project → KPI structure as follows:

Here's how you can create contributing objectives in Cascade: 

Option A: Create contributing objectives within the same plan 

This means creating multiple contributing objectives within the same strategic plan that contribute to the main objective. 

However, be aware that if you have a lot of layers, your strategic plan can become cluttered, and people might have difficulty understanding how their daily efforts contribute to the strategic plan at the top level. 

For example, the people responsible for managing contributing objectives at the bottom of the plan ( functional / operational level ) will lose visibility on how are their objectives linked to the main focus areas and objectives (at a corporate / business level ). 

This approach is best suited to smaller organizations that only need to add a few layers of objectives to their plan.

Option B: Create contributing objectives from multiple strategic plans linking to the main objective

This approach creates a network of aligned strategic plans within your organization. Each plan contains a set of focus areas and one single layer of objectives, each with its own set of projects, actions, and KPIs. This concept looks like this:

This example illustrates an objective that is a main objective in the IT strategic plan , but also contributes to the main strategic plan's objective.

For example, let's say that your main business objective is to improve customer satisfaction by reducing product delivery time by 25% in the next quarter. This objective requires multiple operational teams within your organization to work together to achieve a shared objective. 

Each team will create its own objective in its plan to contribute to the main objective: 

• Logistics team: Reduce the shipment preparation time by 30%
• IT team: Implement new technology to reduce manual handling in the warehouse
• Production team: Increase production output by hour for 5%   

Here's how this example would look like within the Cascade platform:

Although each contributing objective was originally created in its own plan, you can see how each contributing objective relates to the main strategic objective and its status in real-time.

2. Shared objectives

In Cascade, shared objectives are the same objectives shared across different strategic plans.

For example, you can have an objective that is “Achieve sustainable operations” . This objective can be part of the Corporate Strategy Plan, but also part of the Operations Plan , Supply Chain Plan , Production Plan, etc. In short, this objective becomes a shared objective between multiple teams and strategic plans. 

This approach helps you to:

• Cascade your business strategy as deep as you want across a near-infinite number of people while maintaining strategic alignment throughout your organization .
• Create transparency and a much higher level of engagement in the strategy throughout your organization since objective owners are able to identify how their shared efforts contribute to the success of the main business objectives.

The more shared objectives you have across your organization, the more your teams will be aligned with the overarching business strategy. This is what we call " alignment health ”. 

Here's how you can see the shared objectives in the alignment map and analyze alignment health within Cascade:

You get a snapshot of how your corporate strategic plan is aligned with sub-plans from different business units or departments and the status of shared objectives. This helps you quickly identify misaligned strategic initiatives and act before it's too late.  Plus, cross-functional teams have better visibility of how their efforts contribute to shared objectives. 

So whether you choose contributing objectives or shared objectives, Cascade has the tools and features to help you achieve organization-wide alignment and boost your bottom line.

Quick Overview Of Key Steps In Writing A Strategic Plan

Here's a quick infographic to help you remember how everything connects and why each element is critical to effective strategic planning:

This simple answer to how to write a strategic plan avoids confusing jargon and has elements that the whole organization can both get behind and understand. 

💡Tip: Save this image or bookmark this article for your next strategic planning session.

If you're struggling to write an execution-ready strategic plan, the Cascade Strategy Model is the solution you've been looking for. With its clear, easy-to-understand terminology, and simple linkages between objectives, projects, and KPIs, you can create a plan that's both scalable and flexible.

But why is a flexible and execution-ready strategic plan so important? It's simple: without a clear and actionable plan, you'll never be able to achieve your business objectives. By using the Cascade Strategic Planning Model, you'll be able to create a plan that's both tangible and measurable, with KPIs that help you track progress towards your goals.

However, the real value of the Cascade framework lies in its flexibility . By creating links between main business objectives and your teams' objectives, you can easily scale your plan without losing focus. Plus, the model's structure of linked layers means that you can always adjust your strategy in response to new challenges to easily develop an iterative strategic planning process. 

So if you want to achieve results with your strategic plan, start using Cascade today. With its unique combination of flexibility and focus, it's the perfect tool for any organization looking to master strategy execution and succeed in today's fast-paced business world. 

Want to see Cascade in action? Get started for free or book a 1:1 demo with Cascade's in-house strategy expert.

This article is part one of our mini-series "How to Create a Strategy". This first article will give you a solid strategy model for your plan and get the strategic thinking going.

Think of it as the foundation for your new strategy. Subsequent parts of the series will show you how to create the content for your strategic plan.

Articles in our "How To Create a Strategy" series

• How To Write A Strategic Plan In 6 Steps + Examples (This article)
• How to Write a Good Vision Statement
• How To Create Company Values
• Creating Strategic Focus Areas
• How To Write Strategic Objectives
• How To Create Effective Projects
• How To Write KPIs + Ultimate Guide To Strategic Planning

More resources on strategic planning and strategy execution: 

• 6 Steps to Successful Strategy Execution
• 4-Step Strategy Reporting Process (With Template)
• Annual Planning: Plan Like a Pro In 5 Steps (+ Template) 
• 18 Free Strategic Plan Templates (Excel & Cascade) 2024
• The Right Way To Set Team Goals
• 23 Best Strategy Tools For Your Organization in 2024

Popular articles

11 Best Strategic Frameworks For Your Organization + Free eBook

Strategic Analysis Complete Guide: Definition, Tools & Examples

6 Steps To Successful Strategy Execution & Best Practices

How To Create A Culture Of Strategy Execution

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• What is strategic planning? A 5-step gu ...

What is strategic planning? A 5-step guide

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. In this article, we'll guide you through the strategic planning process, including why it's important, the benefits and best practices, and five steps to get you from beginning to end.

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. The strategic planning process informs your organization’s decisions, growth, and goals.

Strategic planning helps you clearly define your company’s long-term objectives—and maps how your short-term goals and work will help you achieve them. This, in turn, gives you a clear sense of where your organization is going and allows you to ensure your teams are working on projects that make the most impact. Think of it this way—if your goals and objectives are your destination on a map, your strategic plan is your navigation system.

In this article, we walk you through the 5-step strategic planning process and show you how to get started developing your own strategic plan.

How to build an organizational strategy

Get our free ebook and learn how to bridge the gap between mission, strategic goals, and work at your organization.

What is strategic planning?

Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years. During the strategic planning process, stakeholders review and define the organization’s mission and goals, conduct competitive assessments, and identify company goals and objectives. The product of the planning cycle is a strategic plan, which is shared throughout the company.

What is a strategic plan?

A strategic plan is the end result of the strategic planning process. At its most basic, it’s a tool used to define your organization’s goals and what actions you’ll take to achieve them.

Typically, your strategic plan should include: 

Your company’s mission statement

Your organizational goals, including your long-term goals and short-term, yearly objectives

Any plan of action, tactics, or approaches you plan to take to meet those goals

What are the benefits of strategic planning?

Strategic planning can help with goal setting and decision-making by allowing you to map out how your company will move toward your organization’s vision and mission statements in the next three to five years. Let’s circle back to our map metaphor. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).

When you create and share a clear strategic plan with your team, you can:

Build a strong organizational culture by clearly defining and aligning on your organization’s mission, vision, and goals.

Align everyone around a shared purpose and ensure all departments and teams are working toward a common objective.

Proactively set objectives to help you get where you want to go and achieve desired outcomes.

Promote a long-term vision for your company rather than focusing primarily on short-term gains.

Ensure resources are allocated around the most high-impact priorities.

Define long-term goals and set shorter-term goals to support them.

Assess your current situation and identify any opportunities—or threats—allowing your organization to mitigate potential risks.

Create a proactive business culture that enables your organization to respond more swiftly to emerging market changes and opportunities.

What are the 5 steps in strategic planning?

The strategic planning process involves a structured methodology that guides the organization from vision to implementation. The strategic planning process starts with assembling a small, dedicated team of key strategic planners—typically five to 10 members—who will form the strategic planning, or management, committee. This team is responsible for gathering crucial information, guiding the development of the plan, and overseeing strategy execution.

Once you’ve established your management committee, you can get to work on the planning process. 

Step 1: Assess your current business strategy and business environment

Before you can define where you’re going, you first need to define where you are. Understanding the external environment, including market trends and competitive landscape, is crucial in the initial assessment phase of strategic planning.

To do this, your management committee should collect a variety of information from additional stakeholders, like employees and customers. In particular, plan to gather:

Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future.

Customer insights to understand what your customers want from your company—like product improvements or additional services.

Employee feedback that needs to be addressed—whether about the product, business practices, or the day-to-day company culture.

Consider different types of strategic planning tools and analytical techniques to gather this information, such as:

A balanced scorecard to help you evaluate four major elements of a business: learning and growth, business processes, customer satisfaction, and financial performance.

A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process). 

To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:

What does your organization currently do well?

What separates you from your competitors?

What are your most valuable internal resources?

What tangible assets do you have?

What is your biggest strength? 

Weaknesses:

What does your organization do poorly?

What do you currently lack (whether that’s a product, resource, or process)?

What do your competitors do better than you?

What, if any, limitations are holding your organization back?

What processes or products need improvement? 

Opportunities:

What opportunities does your organization have?

How can you leverage your unique company strengths?

Are there any trends that you can take advantage of?

How can you capitalize on marketing or press opportunities?

Is there an emerging need for your product or service? 

What emerging competitors should you keep an eye on?

Are there any weaknesses that expose your organization to risk?

Have you or could you experience negative press that could reduce market share?

Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your company’s goals and objectives

To begin strategy development, take into account your current position, which is where you are now. Then, draw inspiration from your vision, mission, and current position to identify and define your goals—these are your final destination. 

To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” “What’s the ideal future state of this company?” This can help you figure out which path you need to take to get there.

During this phase of the planning process, take inspiration from important company documents, such as:

Your mission statement, to understand how you can continue moving towards your organization’s core purpose.

Your vision statement, to clarify how your strategic plan fits into your long-term vision.

Your company values, to guide you towards what matters most towards your company.

Your competitive advantages, to understand what unique benefit you offer to the market.

Your long-term goals, to track where you want to be in five or 10 years.

Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in.

Step 3: Develop your strategic plan and determine performance metrics

Now that you understand where you are and where you want to go, it’s time to put pen to paper. Take your current business position and strategy into account, as well as your organization’s goals and objectives, and build out a strategic plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your plan should be created or revisited as the quarters and years go on.

As you build your strategic plan, you should define:

Company priorities for the next three to five years, based on your SWOT analysis and strategy.

Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals . 

Related key results and KPIs. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable. These KPIs will help you track progress and ensure you’re moving in the right direction.

Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.

A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.

Step 4: Implement and share your plan

Now it’s time to put your plan into action. Strategy implementation involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. 

Make sure your team (especially senior leadership) has access to the strategic plan, so they can understand how their work contributes to company priorities and the overall strategy map. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management platform .  

A few tips to make sure your plan will be executed without a hitch: 

Communicate clearly to your entire organization throughout the implementation process, to ensure all team members understand the strategic plan and how to implement it effectively. 

Define what “success” looks like by mapping your strategic plan to key performance indicators.

Ensure that the actions outlined in the strategic plan are integrated into the daily operations of the organization, so that every team member's daily activities are aligned with the broader strategic objectives.

Utilize tools and software—like a work management platform—that can aid in implementing and tracking the progress of your plan.

Regularly monitor and share the progress of the strategic plan with the entire organization, to keep everyone informed and reinforce the importance of the plan.

Establish regular check-ins to monitor the progress of your strategic plan and make adjustments as needed. 

Step 5: Revise and restructure as needed

Once you’ve created and implemented your new strategic framework, the final step of the planning process is to monitor and manage your plan.

Remember, your strategic plan isn’t set in stone. You’ll need to revisit and update the plan if your company changes directions or makes new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan. Make sure to review your plan regularly—meaning quarterly and annually—to ensure it’s still aligned with your organization’s vision and goals.

Keep in mind that your plan won’t last forever, even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.

Build a smarter strategic plan with a work management platform

To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. 

A work management platform plays a pivotal role in this process. It acts as a central hub for your strategic plan, ensuring that every task and project is directly tied to your broader company goals. This alignment is crucial for visibility and coordination, allowing team members to see how their individual efforts contribute to the company’s success. 

By leveraging such a platform, you not only streamline workflow and enhance team productivity but also align every action with your strategic objectives—allowing teams to drive greater impact and helping your company move toward goals more effectively. 

Strategic planning FAQs

Still have questions about strategic planning? We have answers.

Why do I need a strategic plan?

A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics that will help your company be successful.

When should I create a strategic plan?

You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed.

Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. 

What is a strategic planning template?

A strategic planning template is a tool organizations can use to map out their strategic plan and track progress. Typically, a strategic planning template houses all the components needed to build out a strategic plan, including your company’s vision and mission statements, information from any competitive analyses or SWOT assessments, and relevant KPIs.

What’s the difference between a strategic plan vs. business plan?

A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.

You should create a business plan when you’re: 

Just starting your business

Significantly restructuring your business

If your business is already established, you should create a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.

What’s the difference between a strategic plan vs. mission and vision statements?

Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.

Simply put: 

A mission statement summarizes your company’s purpose.

A vision statement broadly explains how you’ll reach your company’s purpose.

A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. 

For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:

Mission statement: “To ensure the safety of the world’s animals.” 

Vision statement: “To create pet safety and tracking products that are effortless to use.” 

Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. 

What’s the difference between a strategic plan vs. company objectives?

Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. 

Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.

What’s the difference between a strategic plan vs. a business case?

A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. 

You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.

What’s the difference between a strategic plan vs. a project plan?

A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. 

What’s the difference between strategic management vs. strategic planning?

A strategic plan is a tool to define where your organization wants to go and what actions you need to take to achieve those goals. Strategic planning is the process of creating a plan in order to hit your strategic objectives.

Strategic management includes the strategic planning process, but also goes beyond it. In addition to planning how you will achieve your big-picture goals, strategic management also helps you organize your resources and figure out the best action plans for success. 

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What is a Business Strategy and How to Create One

13 min. read

Updated April 19, 2024

There is so much you could do to grow your business . You could develop new business partnerships, build new features for your product, or add new products and services. It’s an ever-growing list of seemingly good ideas. 

But you can only do so much with the time and resources available, and chasing the wrong thing can be incredibly costly. How are you supposed to know what’s worth pursuing?

By developing a business strategy. 

• What is a business strategy?

A business strategy outlines what makes your business unique and how you’ll solve a specific problem for your customers. It helps you focus on creating value to solidify a competitive advantage in the market and reach your goals. 

Creating a business strategy gives you a guide for making decisions that prioritize growth . A few use cases for your strategy include:

• Entering a new market
• Launching a product
• Repositioning your business
• Allocating resources
• Addressing business challenges
• Why is a business strategy important?

A good business strategy helps you:

Maintain focus

With a business strategy in place, you’ll be better prepared to avoid chasing every new opportunity. It helps channel your efforts toward opportunities that align with your objectives.

Avoid wasting resources

Without a well-thought-out strategy, there’s a higher risk of wasting time and money, possibly leading to business failure.

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Keep your team aligned 

A clear strategy keeps you and your team on the same page. It guides your collective focus towards specific business goals and ensures everyone moves in the right direction.

Attract investment

Investors need to see how you solve a problem in a way that differs from the competition. Your strategy explains that and shows how you’ll execute on your idea.

Stay competitive

Your business strategy doesn’t just take your customers into account—it also forces you to understand your competitors. You’ll understand how you compare and what it will take to grow beyond them.

• How to create a business strategy

When developing a strategy, keep it simple. Focus on the needs of your customers and the value of your business. Here’s how:

Tip: Download our free one-page business plan template . It provides a simple but effective format to document your business strategy.

1. Know your customers

You shouldn’t take action without understanding your customers’ needs . Read reviews, conduct surveys, dig into forums, and—most importantly—talk to your customers. 

Whatever you do, collect real-world data and develop an understanding of your target market . 

Now, you need to document your results. Add enough information for you, and anyone else, to easily understand:

• Who your target customers are
• How many potential customers there are
• Specific preferences like buying habits, cultural affinities, etc.

Don’t go into too much detail here. Just have enough information to paint a picture of your ideal customer.

What if you’re an up-and-running business?

If you have created a business plan , you should already have a profile of your target market. For this step, revisit your information and determine if it is still relevant and accurate. 

Tip: You may find it valuable to craft a customer persona —a faux customer profile based on your market research . It’s a helpful tool to visualize your customers and keep them top of mind.  

2. Define your value proposition

The crux of your strategy is the distinct value your business provides. The research and information you’ve documented will make defining that value much easier. By the end of this step, you will have brief descriptions of:

• The problem you solve
• Your solution
• Your value proposition

These will be brief but powerful statements for your business. It’s where you define what you do, why, and how you do it better. They’ll drive your strategy and help turn your customers’ needs into memorable statements that you, your employees, and even potential investors will focus on.

Tip: If you’ve written a business plan , you don’t have to start this process from scratch. You likely already have the components or even entirely written statements in your Products and Services and Sales and Marketing sections to use. 

Describing the problem

In a sentence or two, outline the critical problem your target customers face. 

Example: “Most local consumers lack access to fresh, organic bakery options that support health and community sustainability.”

Explaining your solution

Briefly describe how your product or service addresses the problem identified.

Example: “Our bakery offers daily-baked, organic bread and pastries using locally sourced ingredients, providing a healthy and community-supportive alternative to mass-produced baked goods.”

Creating your value proposition

Your value proposition is a clear, concise statement explaining: 

• The unique benefits your products or services provide
• Who you provide them to
• How they are different or better than similar offerings in the market

You can use your descriptions of the problem and solution to help define the key product/service benefits in your value proposition.

List what factors set you apart from the competition. Hone in on a theme for both that resonates with your customer’s needs and preferences. Then, combine these ideas into a single sentence.

Example: For a local organic bakery focused on quality and healthy eating, your value proposition might look like:

“Enjoy fresh, organic goods baked daily with locally sourced ingredients to support your health and community sustainability.”

Read More: When your strategy needs a story

3. Analyze your competitors

Understanding your competition is crucial for carving out your unique space in the market. Here’s what to look for:

• List your competitors: Identify the main players in your market.
• Evaluate their offerings: Examine their products or services. Try to spot differences in product features, pricing, customer service, or brand perception.
• Assess their value proposition: Understand how they position themselves, the unique value they claim to offer, and how they communicate this to customers.
• Understand what customers think: Look at customer reviews, testimonials, and social media feedback to gauge customer satisfaction and common pain points. 

Like your customer research, you don’t need to be overly detailed here. You want a simple summary of the competition and why you’re different or better than them. That should provide enough information to help with the final step.

Example: After checking out the competition, you realize that your bakery offers far more gluten-free and vegan options (and they taste far better). You’re also planning to offer delivery services, which current bakeries in the area lack. 

But what if your business provides a solution that isn’t drastically different from competitors? It’s a fairly common situation, and you may struggle to immediately identify how to set your business apart.

If this sounds like you, then you’ll need to focus your differentiation efforts on:

• Where the product/service is sold
• Messaging and marketing channels
• How your business makes money

All of which we’ll cover over the next three steps. 

4. List your sales channels

The sales channels you choose and prioritize should be based on the needs of your target customers . 

• Where do they expect products/services like yours to be? 
• Where do your competitors sell theirs? 
• Are there untapped sales opportunities that would better serve your customers?

Focus on that last question if you’re trying to differentiate through your sales efforts. The biggest opportunity may simply be to better serve the purchasing habits of customers instead of offering a fully unique solution. 

Example: 

Let’s revisit our bakery and assume you plan to open a physical storefront. That’s one sales channel—customers make purchases in person. Your competitors also do that, but maybe the location you choose is more convenient and accessible to people on their morning commute. 

As previously mentioned, you also plan to offer your baked goods through 3rd party delivery apps—another sales channel. 

Sticking with that idea, you realize that online ordering is a very attractive benefit to your customers and that most competitors don’t have an up-to-date website. So, you decide to offer online ordering directly through your website.

Other sales options you consider include distribution through local grocery stores and bulk catering contracts. For the purposes of your strategy document, you’d list off these sales channels based on how you’ll prioritize them and end up with something like this:

Sales channels

• 3rd party delivery
• Catering contracts
• Retailer distribution 

5. Explain your marketing activities

How will you spread the word about your business? 

Will you take out traditional ads in newspapers and on billboards? Focus on paid advertising through Google search or Facebook? Maybe branch out and partner with influencers?

Whatever you choose, focus on marketing activities that get you in front of your customers. There’s no reason to invest money in places where your customers aren’t spending their time. If you do, you’ll struggle to see any real return on marketing efforts.

Now, that doesn’t mean you just replicate what your competitors are doing and do the same marketing activities. They may not be the most effective or targeted efforts. In fact, by taking a different approach, you could differentiate your business through the channels and messaging you choose.

You notice that most of your competitors’ marketing consists of billboards, flyers, and similar out-of-home awareness efforts. They don’t market much online or try to directly connect with customers. 

You believe that your target customers appreciate a more personal approach. So, you split your efforts and try to build a connection through complimentary digital and traditional marketing efforts. 

You send direct mailers providing regular incentives that also feature your Instagram. Then you create regular posts showing how your baked goods are made and previewing upcoming treats—which can be repurposed for online ads.  

This approach, compared to your competitors, is far more interconnected. Each effort promotes and bolsters the rest—potentially leading to more consistent messaging and cost-effective creation. 

Read More: How to Create a Zero-Waste Business Strategy

6. Describe your business model

Your business model describes how your business will make money—covering where revenue comes from and your expenses. 

But, did you know that your strategy can be focused on innovating with your business model?

You don’t need to invent a fully new business model either. Instead, focus on identifying ways to optimize:

• The creation of your product/service
• How you sell your product/service
• How and what your customers pay

You’re not trying to break the mold with how you make money through your bakery. However, you have identified a few ways to make your business model more profitable. 

First, you found local suppliers who can provide high-quality ingredients but are far less expensive to acquire due to a lack of shipping costs. Your expanded sales channels also provide far more options for customers to engage and purchase however they want. 

And since your products are of a higher quality, you’re positioning them as a premium option. However, due to your cost-saving efforts, you’ve been able to keep prices relatively close to competitors and even have the flexibility to go lower if needed.

If you’re just putting your strategy together, don’t focus on going too in-depth with your number crunching. Instead, describe your business model by simply listing your revenue streams and key expenses. 

Once you have a business model that you believe will work (and have ideally tested it with customers ) then create detailed forecasts to make it usable.

Tip: Check out the financial plan step in our business planning guide for in-depth guidance on creating financial forecasts.

Dig deeper:

3 questions to help you build a long-term strategy

Clarify your value, target the right buyers, and understand how to reach them meaningfully by asking three simple questions.

11 tips for creating a long-term strategic plan

Try implementing these tips to turn your strategy into an effective management tool for your business.

• How to execute your business strategy

The process above helps you create your business-level strategy. However, there are ways to make your strategy more actionable.

Define your tactics

Transitioning your business strategy into functional tactics is essential to achieve your business goals. While your strategy sets the direction—tactics detail the operational steps and day-to-day activities necessary for execution. 

Example: One of your differentiation strategies is to provide greater customer service than your competitors. You need to enhance customer satisfaction, which may translate into tactics like implementing a feedback system or training staff in customer service.

Successfully implementing your tactics requires setting clear deadlines, identifying and addressing potential bottlenecks, and adjusting processes. Remember, you want every tactic to contribute to your long-term goals. If you find that work isn’t aligning with your strategy, it likely isn’t worth prioritizing.

Why strategy is useless without execution

Tactics and specific details make your strategy actionable. You’ll struggle to achieve consistent growth if you fail to understand how these three things work together.

7 steps for successful project planning

Similar to your strategy, the most effective projects are thoroughly planned before starting. It may take more time up front, but it will save you time and money in the long run.

Measure performance

The entire point of developing a strategy is to ensure you are making progress toward the growth of your business. Even if you’ve worked through all of the steps we’ve outlined here, you will struggle to make any real progress without tracking and evaluating your performance.

The metrics or key performance indicators (KPIs) you focus on measuring fully depend on your strategy. You should at least track revenue growth and cash flow. These will provide you with the basics for understanding the health of your business. The rest is up to you. 

Are you focusing on bringing in customers? Track your customer acquisition costs and retention rate. 

Looking to improve brand visibility? Retention rate, market share, and Net Promoter Score may be useful options.

In any case, know what you need to track and set up a way to do so as early as possible. Regularly reviewing these metrics provides insights into whether your strategy is working. The longer you go without knowing what demonstrates success, the longer it will take to execute your strategy.

5 signs you need to pivot your business

If you’re losing customers, bleeding cash, or underutilizing your team it may be time to rethink your strategy.

Bring in your team

Engaging key stakeholders early provides unique insights that can lead to a more well-rounded strategy. It also helps foster a sense of ownership and trust between you and your employees. 

You don’t need to share it with everyone in this early stage—but collaborating with the right people can streamline your efforts. You’ll avoid misalignment between individuals, teams, and the business. Plus, it can lead to discussions and ideas for applying the strategy to smaller projects and goals. 

How to create business management standards

Before you get your team involved in developing your strategy, it may be wise to establish set guidelines for everyone to follow and reference.

• What makes a successful business strategy?

Your strategy won’t be perfect. Even if you follow these steps to the letter, unforeseen circumstances, changes in the market, or any number of things will force you to adjust.

The key to a successful strategy is to pay attention to your performance and change course when necessary. Your strategy cannot be static and isolated. If it is, you’ll struggle to grow as things change.

If you’re looking for a tool to help you document and review your strategy—the one-page business plan is a simple but effective option.

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

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Starting a project without a strategy is like trying to bake a cake without a recipe — you might have all the ingredients you need, but without a plan for how to combine them, or a vision for what the finished product will look like, you’re likely to end up with a mess. This is especially true when working with a team — it’s crucial to have a shared plan that can serve as a map on the pathway to success.

Creating a strategic plan not only provides a useful document for the future, but also helps you define what you have right now, and think through and outline all of the steps and considerations you’ll need to succeed.

What is strategic planning?

While there is no single approach to creating a strategic plan, most approaches can be boiled down to five overarching steps:

• Define your vision
• Assess where you are
• Determine your priorities and objectives
• Define responsibilities
• Measure and evaluate results

Each step requires close collaboration as you build a shared vision, strategy for implementation, and system for understanding performance.

Related: Learn how to hold an effective strategic planning meeting

Why do I need a strategic plan?

Building a strategic plan is the best way to ensure that your whole team is on the same page, from the initial vision and the metrics for success to evaluating outcomes and adjusting (if necessary) for the future. Even if you’re an expert baker, working with a team to bake a cake means having a collaborative approach and clearly defined steps so that the result reflects the strategic goals you laid out at the beginning.

The benefits of strategic planning also permeate into the general efficiency and productivity of your organization as a whole. They include: 

• Greater attention to potential biases or flaws, improving decision-making 
• Clear direction and focus, motivating and engaging employees
• Better resource management, improving project outcomes 
• Improved employee performance, increasing profitability
• Enhanced communication and collaboration, fostering team efficiency 

Next, let’s dive into how to build and structure your strategic plan, complete with templates and assets to help you along the way.

Before you begin: Pick a brainstorming method

There are many brainstorming methods you can use to come up with, outline, and rank your priorities. When it comes to strategy planning, it’s important to get everyone’s thoughts and ideas out before committing to any one strategy. With the right facilitation , brainstorming helps make this process fair and transparent for everyone involved.  

First, decide if you want to run a real-time rapid ideation session or a structured brainstorming . In a rapid ideation session, you encourage sharing half-baked or silly ideas, typically within a set time frame. The key is to just get out all your ideas quickly and then edit the best ones. Examples of rapid ideation methods include round robin , brainwriting , mind mapping , and crazy eights . 

In a structured brainstorming session, you allow for more time to prepare and edit your thoughts before getting together to share and discuss those more polished ideas. This might involve brainstorming methods that entail unconventional ways of thinking, such as reverse brainstorming or rolestorming . 

Using a platform like Mural, you can easily capture and organize your team’s ideas through sticky notes, diagrams, text, or even images and videos. These features allow you to build actionable next steps immediately (and in the same place) through color coding and tagging. 

Whichever method you choose, the ideal outcome is that you avoid groupthink by giving everyone a voice and a say. Once you’ve reached a consensus on your top priorities, add specific objectives tied to each of those priorities.

Related: Brainstorming and ideation template

1. Define your vision

Whether it’s for your business as a whole, or a specific initiative, successful strategic planning involves alignment with a vision for success. You can think of it as a project-specific mission statement or a north star to guide employees toward fulfilling organizational goals. 

To create a vision statement that explicitly states the ideal results of your project or company transformation, follow these four key steps: 

• Engage and involve the entire team . Inclusivity like this helps bring diverse perspectives to the table. 
• Align the vision with your core values and purpose . This will make it familiar and easy to follow through. 
• Stay grounded . The vision should be ambitious enough to motivate and inspire yet grounded enough to be achievable and relevant.
• Think long-term flexibility . Consider future trends and how your vision can be flexible in the face of challenges or opportunities. 

For example, say your vision is to revolutionize customer success by streamlining and optimizing your process for handling support tickets. It’s important to have a strategy map that allows stakeholders (like the support team, marketing team, and engineering team) to know the overall objective and understand the roles they will play in realizing the goals. 

This can be done in real time or asynchronously , whether in person, hybrid, or remote. By leveraging a shared digital space , everyone has a voice in the process and room to add their thoughts, comments, and feedback. 

Related: Vision board template

2. Assess where you are

The next step in creating a strategic plan is to conduct an assessment of where you stand in terms of your own initiatives, as well as the greater marketplace. Start by conducting a resource assessment. Figure out which financial, human, and/or technological resources you have available and if there are any limitations. You can do this using a SWOT analysis.

What is SWOT analysis?

SWOT analysis is an exercise where you define:

• Strengths: What are your unique strengths for this initiative or this product? In what ways are you a leader?
• Weaknesses: What weaknesses can you identify in your offering? How does your product compare to others in the marketplace?
• Opportunities: Are there areas for improvement that'd help differentiate your business?
• Threats: Beyond weaknesses, are there existing potential threats to your idea that could limit or prevent its success? How can those be anticipated?

For example, say you have an eco-friendly tech company and your vision is to launch a new service in the next year. Here’s what the SWOT analysis might look like: 

• Strengths : Strong brand reputation, loyal customer base, and a talented team focused on innovation
• Weaknesses : Limited bandwidth to work on new projects, which might impact the scope of its strategy formulation 
• Opportunities : How to leverage and experiment with existing customers when goal-setting
• Threats : Factors in the external environment out of its control, like the state of the economy and supply chain shortages

This SWOT analysis will guide the company in setting strategic objectives and formulating a robust plan to navigate the challenges it might face. 

Related: SWOT analysis template

3. Determine your priorities and objectives

Once you've identified your organization’s mission and current standing, start a preliminary plan document that outlines your priorities and their corresponding objectives. Priorities and objectives should be set based on what is achievable with your available resources. The SMART framework is a great way to ensure you set effective goals . It looks like this:  

• Specific: Set clear objectives, leaving no room for ambiguity about the desired outcomes.
• Measurable : Choose quantifiable criteria to make it easier to track progress.
• Achievable : Ensure it is realistic and attainable within the constraints of your resources and environment.
• Relevant : Develop objectives that are relevant to the direction your organization seeks to move.
• Time-bound : Set a clear timeline for achieving each objective to maintain a sense of urgency and focus.

For instance, going back to the eco-friendly tech company, the SMART goals might be: 

• Specific : Target residential customers and small businesses to increase the sales of its solar-powered device line by 25%. 
• Measurable : Track monthly sales and monitor customer feedback and reviews. 
• Achievable : Allocate more resources to the marketing, sales, and customer service departments. 
• Relevant : Supports the company's growth goals in a growing market of eco-conscious consumers. 
• Time-bound : Conduct quarterly reviews and achieve this 25% increase in sales over the next 12 months.

With strategic objectives like this, you’ll be ready to put the work into action. 

Related: Project kickoff template

4. Define tactics and responsibilities

In this stage, individuals or units within your team can get granular about how to achieve your goals and who'll be accountable for each step. For example, the senior leadership team might be in charge of assigning specific tasks to their team members, while human resources works on recruiting new talent. 

It’s important to note that everyone’s responsibilities may shift over time as you launch and gather initial data about your project. For this reason, it’s key to define responsibilities with clear short-term metrics for success. This way, you can make sure that your plan is adaptable to changing circumstances. 

One of the more common ways to define tactics and metrics is to use the OKR (Objectives and Key Results) method. By outlining your OKRs, you’ll know exactly what key performance indicators (KPIs) to track and have a framework for analyzing the results once you begin to accumulate relevant data. 

For instance, if our eco-friendly tech company has a goal of increasing sales, one objective might be to expand market reach for its solar-powered products. The sales team lead would be in charge of developing an outreach strategy. The key result would be to successfully launch its products in two new regions by Q2. The KPI would be a 60% conversation rate in those targeted markets.  

Related: OKR planning template  

5. Manage, measure, and evaluate

Once your plan is set into motion, it’s important to actively manage (and measure) progress. Before launching your plan, settle on a management process that allows you to measure success or failure. In this way, everyone is aligned on progress and can come together to evaluate your strategy execution at regular intervals.

Determine the milestones at which you’ll come together and go over results — this can take place weekly, monthly, or quarterly, depending on the nature of the project.

One of the best ways to evaluate progress is through agile retrospectives (or retros) , which can be done in real time or asynchronously. During this process, gather and organize feedback about the key elements that played a role in your strategy. 

Related: Retrospective radar template

Retrospectives are typically divided into three parts:

• What went well.
• What didn’t go well.
• New opportunities for improvement.

This structure is also sometimes called the “ rose, thorn, bud ” framework. By using this approach, team members can collectively brainstorm and categorize their feedback, making the next steps clear and actionable. Creating an action plan during a post-mortem meeting is a crucial step in ensuring that lessons learned from past projects or events are effectively translated into tangible improvements. 

Another method for reviewing progress is the quarterly business review (QBR). Like the agile retrospective, it allows you to collect feedback and adjust accordingly. In the case of QBRs, however, we recommend dividing your feedback into four categories:

• Start (what new items should be launched?).
• Stop (what items need to be paused?).
• Continue (what is going well?).
• Change (what could be modified to perform better?).

Strategic planners know that planning activities continue even after a project is complete. There’s always room for improvement and an action plan waiting to be implemented. Using the above approaches, your team can make room for new ideas within the existing strategic framework in order to track better to your long-term goals.

Related: Quarterly business review template

Conclusions

The beauty of the strategic plan is that it can be applied from the campaign level all the way up to organizational vision. Using the strategic planning framework, you build buy-in , trust, and transparency by collaboratively creating a vision for success, and mapping out the steps together on the road to your goals.

Also, in so doing, you build in an ability to adapt effectively on the fly in response to data through measurement and evaluation, making your plan both flexible and resilient.

Related: 5 Tips for Holding Effective Post-mortems

Why Mural for strategic planning

Mural unlocks collaborative strategic planning through a shared digital space with an intuitive interface, a library of pre-fab templates, and methodologies based on design thinking principles.

Outline goals, identify key metrics, and track progress with a platform built for any enterprise.

Learn more about strategic planning with Mural.

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6 Steps to Make Your Strategic Plan Really Strategic

• Graham Kenny

You don’t need dozens of strategic goals.

Many strategic plans aren’t strategic, or even plans. To fix that, try a six step process: first, identify key stakeholders. Second, identify a specific, very important key stakeholder: your target customer. Third, figure out what these stakeholders want from you. Fourth, figure out what you want from them. Fifth, design your strategy around these requirements. Sixth, focus on continuously improving this plan.

Why is it that when a group of managers gets together for a strategic planning session they often emerge with a document that’s devoid of “strategy”, and often not even a plan ?

• Graham Kenny is the CEO of Strategic Factors and author of Strategy Discovery . He is a recognized expert in strategy and performance measurement who helps managers, executives, and boards create successful organizations in the private, public, and not-for-profit sectors. He has been a professor of management in universities in the U.S. and Canada.

Partner Center

Essential Guide to the Strategic Planning Process

By Joe Weller | April 3, 2019 (updated March 26, 2024)

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In this article, you’ll learn the basics of the strategic planning process and how a strategic plan guides you to achieving your organizational goals. Plus, find expert insight on getting the most out of your strategic planning.

Included on this page, you'll discover the importance of strategic planning , the steps of the strategic planning process , and the basic sections to include in your strategic plan .

What Is Strategic Planning?

Strategic planning is an organizational activity that aims to achieve a group’s goals. The process helps define a company’s objectives and investigates both internal and external happenings that might influence the organizational path. Strategic planning also helps identify adjustments that you might need to make to reach your goal. Strategic planning became popular in the 1960s because it helped companies set priorities and goals, strengthen operations, and establish agreement among managers about outcomes and results.

Strategic planning can occur over multiple years, and the process can vary in length, as can the final plan itself. Ideally, strategic planning should result in a document, a presentation, or a report that sets out a blueprint for the company’s progress.

By setting priorities, companies help ensure employees are working toward common and defined goals. It also aids in defining the direction an enterprise is heading, efficiently using resources to achieve the organization’s goals and objectives. Based on the plan, managers can make decisions or allocate the resources necessary to pursue the strategy and minimize risks.

Strategic planning strengthens operations by getting input from people with differing opinions and building a consensus about the company’s direction. Along with focusing energy and resources, the strategic planning process allows people to develop a sense of ownership in the product they create.

“Strategic planning is not really one thing. It is really a set of concepts, procedures, tools, techniques, and practices that have to be adapted to specific contexts and purposes,” says Professor John M. Bryson, McKnight Presidential Professor of Planning and Public Affairs at the Hubert H. Humphrey School of Public Affairs, University of Minnesota and author of Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement . “Strategic planning is a prompt to foster strategic thinking, acting, and learning, and they all matter and they are all connected.”

What Strategic Planning Is Not

Strategic planning is not a to-do list for the short or long term — it is the basis of a business, its direction, and how it will get there.

“You have to think very strategically about strategic planning. It is more than just following steps,” Bryson explains. “You have to understand strategic planning is not some kind of magic solution to fixing issues. Don’t have unrealistic expectations.”

Strategic planning is also different from a business plan that focuses on a specific product, service, or program and short-term goals. Rather, strategic planning means looking at the big picture.

While they are related, it is important not to confuse strategic planning with strategic thinking, which is more about imagining and innovating in a way that helps a company. In contrast, strategic planning supports those thoughts and helps you figure out how to make them a reality.

Another part of strategic planning is tactical planning , which involves looking at short-term efforts to achieve longer-term goals.

Lastly, marketing plans are not the same as strategic plans. A marketing plan is more about introducing and delivering a service or product to the public instead of how to grow a business. For more about marketing plans and processes, read this article .

Strategic plans include information about finances, but they are different from financial planning , which involves different processes and people. Financial planning templates can help with that process.

Why Is Strategic Planning Important?

In today’s technological age, strategic plans provide businesses with a path forward. Strategic plans help companies thrive, not just survive — they provide a clear focus, which makes an organization more efficient and effective, thereby increasing productivity.

“You are not going to go very far if you don’t have a strategic plan. You need to be able to show where you are going,” says Stefan Hofmeyer, an experienced strategist and co-founder of Global PMI Partners . He lives in the startup-rich environment of northern California and says he often sees startups fail to get seed money because they do not have a strong plan for what they want to do and how they want to do it.

Getting team members on the same page (in both creating a strategic plan and executing the plan itself) can be beneficial for a company. Planners can find satisfaction in the process and unite around a common vision. In addition, you can build strong teams and bridge gaps between staff and management.

“You have to reach agreement about good ideas,” Bryson says. “A really good strategy has to meet a lot of criteria. It has to be technically workable, administratively feasible, politically acceptable, and legally, morally, and ethically defensible, and that is a pretty tough list.”

By discussing a company’s issues during the planning process, individuals can voice their opinions and provide information necessary to move the organization ahead — a form of problem solving as a group.

Strategic plans also provide a mechanism to measure success and progress toward goals, which keeps employees on the same page and helps them focus on the tasks at hand.

When Is the Time to Do Strategic Planning?

There is no perfect time to perform strategic planning. It depends entirely on the organization and the external environment that surrounds it. However, here are some suggestions about when to plan:

If your industry is changing rapidly

When an organization is launching

At the start of a new year or funding period

In preparation for a major new initiative

If regulations and laws in your industry are or will be changing

“It’s not like you do all of the thinking and planning, and then implement,” Bryson says. “A mistake people make is [believing] the thinking has to precede the acting and the learning.”

Even if you do not re-create the entire planning process often, it is important to periodically check your plan and make sure it is still working. If not, update it.

What Is the Strategic Planning Process?

Strategic planning is a process, and not an easy one. A key is to make sure you allow enough time to complete the process without rushing, but not take so much time that you lose momentum and focus. The process itself can be more important than the final document due to the information that comes out of the discussions with management, as well as lower-level workers.

“There is not one favorite or perfect planning process,” says Jim Stockmal, president of the Association for Strategic Planning (ASP). He explains that new techniques come out constantly, and consultants and experienced planners have their favorites. In an effort to standardize the practice and terms used in strategic planning, ASP has created two certification programs .

Level 1 is the Strategic Planning Professional (SPP) certification. It is designed for early- or mid-career planners who work in strategic planning. Level 2, the Strategic Management Professional (SMP) certification, is geared toward seasoned professionals or those who train others. Stockmal explains that ASP designed the certification programs to add structure to the otherwise amorphous profession.

The strategic planning process varies by the size of the organization and can be formal or informal, but there are constraints. For example, teams of all sizes and goals should build in many points along the way for feedback from key leaders — this helps the process stay on track.

Some elements of the process might have specific start and end points, while others are continuous. For example, there might not be one “aha” moment that suddenly makes things clear. Instead, a series of small moves could slowly shift the organization in the right direction.

“Don’t make it overly complex. Bring all of the stakeholders together for input and feedback,” Stockmal advises. “Always be doing a continuous environmental scan, and don’t be afraid to engage with stakeholders.”

Additionally, knowing your company culture is important. “You need to make it work for your organization,” he says.

There are many different ways to approach the strategic planning process. Below are three popular approaches:

Goals-Based Planning: This approach begins by looking at an organization’s mission and goals. From there, you work toward that mission, implement strategies necessary to achieve those goals, and assign roles and deadlines for reaching certain milestones.

Issues-Based Planning: In this approach, start by looking at issues the company is facing, then decide how to address them and what actions to take.

Organic Planning: This approach is more fluid and begins with defining mission and values, then outlining plans to achieve that vision while sticking to the values.

“The approach to strategic planning needs to be contingent upon the organization, its history, what it’s capable of doing, etc.,” Bryson explains. “There’s such a mistake to think there’s one approach.”

For more information on strategic planning, read about how to write a strategic plan and the different types of models you can use.

Who Participates in the Strategic Planning Process?

For work as crucial as strategic planning, it is necessary to get the right team together and include them from the beginning of the process. Try to include as many stakeholders as you can.

Below are suggestions on who to include:

Senior leadership

Strategic planners

Strategists

People who will be responsible for implementing the plan

People to identify gaps in the plan

Members of the board of directors

“There can be magic to strategic planning, but it’s not in any specific framework or anybody’s 10-step process,” Bryson explains. “The magic is getting key people together, getting them to focus on what’s important, and [getting] them to do something about it. That’s where the magic is.”

Hofmeyer recommends finding people within an organization who are not necessarily current leaders, but may be in the future. “Sometimes they just become obvious. Usually they show themselves to you, you don’t need to look for them. They’re motivated to participate,” he says. These future leaders are the ones who speak up at meetings or on other occasions, who put themselves out there even though it is not part of their job description.

At the beginning of the process, establish guidelines about who will be involved and what will be expected of them. Everyone involved must be willing to cooperate and collaborate. If there is a question about whether or not to include anyone, it is usually better to bring on extra people than to leave someone out, only to discover later they should have been a part of the process all along. Not everyone will be involved the entire time; people will come and go during different phases.

Often, an outside facilitator or consultant can be an asset to a strategic planning committee. It is sometimes difficult for managers and other employees to sit back and discuss what they need to accomplish as a company and how they need to do it without considering other factors. As objective observers, outside help can often offer insight that may escape insiders.

Hofmeyer says sometimes bosses have blinders on that keep them from seeing what is happening around them, which allows them to ignore potential conflicts. “People often have their own agendas of where they want to go, and if they are not aligned, it is difficult to build a strategic plan. An outsider perspective can really take you out of your bubble and tell you things you don’t necessarily want to hear [but should]. We get into a rhythm, and it’s really hard to step out of that, so bringing in outside people can help bring in new views and aspects of your business.”

An outside consultant can also help naysayers take the process more seriously because they know the company is investing money in the efforts, Hofmeyer adds.

No matter who is involved in the planning process, make sure at least one person serves as an administrator and documents all planning committee actions.

What Is in a Strategic Plan?

A strategic plan communicates goals and what it takes to achieve them. The plan sometimes begins with a high-level view, then becomes more specific. Since strategic plans are more guidebooks than rulebooks, they don’t have to be bureaucratic and rigid. There is no perfect plan; however, it needs to be realistic.

There are many sections in a strategic plan, and the length of the final document or presentation will vary. The names people use for the sections differ, but the general ideas behind them are similar: Simply make sure you and your team agree on the terms you will use and what each means.

One-Page Strategic Planning Template

“I’m a big fan of getting a strategy onto one sheet of paper. It’s a strategic plan in a nutshell, and it provides a clear line of sight,” Stockmal advises.

You can use the template below to consolidate all your strategic ideas into a succinct, one-page strategic plan. Doing so provides you with a high-level overview of your strategic initiatives that you can place on your website, distribute to stakeholders, and refer to internally. More extensive details about implementation, capacity, and other concerns can go into an expanded document.

Download One-Page Strategic Planning Template Excel | Word | Smartsheet

The most important part of the strategic plan is the executive summary, which contains the highlights of the plan. Although it appears at the beginning of the plan, it should be written last, after you have done all your research.

Of writing the executive summary, Stockmal says, “I find it much easier to extract and cut and edit than to do it first.”

For help with creating executive summaries, see these templates .

Other parts of a strategic plan can include the following:

Description: A description of the company or organization.

Vision Statement: A bold or inspirational statement about where you want your company to be in the future.

Mission Statement: In this section, describe what you do today, your audience, and your approach as you work toward your vision.

Core Values: In this section, list the beliefs and behaviors that will enable you to achieve your mission and, eventually, your vision.

Goals: Provide a few statements of how you will achieve your vision over the long term.

Objectives: Each long-term goal should have a few one-year objectives that advance the plan. Make objectives SMART (specific, measurable, achievable, and time-based) to get the most out of them.

Budget and Operating Plans: Highlight resources you will need and how you will implement them.

Monitoring and Evaluation: In this section, describe how you will check your progress and determine when you achieve your goals.

One of the first steps in creating a strategic plan is to perform both an internal and external analysis of the company’s environment. Internally, look at your company’s strengths and weaknesses, as well as the personal values of those who will implement your plan (managers, executives, board members). Externally, examine threats and opportunities within the industry and any broad societal expectations that might exist.

You can perform a SWOT (strengths, weaknesses, opportunities, and threats) analysis to sum up where you are currently and what you should focus on to help you achieve your future goals. Strengths shows you what you do well, weaknesses point out obstacles that could keep you from achieving your objectives, opportunities highlight where you can grow, and threats pinpoint external factors that could be obstacles in your way.

You can find more information about performing a SWOT analysis and free templates in this article . Another analysis technique, STEEPLE (social, technological, economic, environmental, political, legal, and ethical), often accompanies a SWOT analysis.

Basics of Strategic Planning

How you navigate the strategic planning process will vary. Several tools and techniques are available, and your choice depends on your company’s leadership, culture, environment, and size, as well as the expertise of the planners.

All include similar sections in the final plan, but the ways of driving those results differ. Some tools are goals-based, while others are issues- or scenario-based. Some rely on a more organic or rigid process.

Hofmeyer summarizes what goes into strategic planning:

Understand the stakeholders and involve them from the beginning.

Agree on a vision.

Hold successful meetings and sessions.

Summarize and present the plan to stakeholders.

Identify and check metrics.

Make periodic adjustments.

Items That Go into Strategic Planning

Strategic planning contains inputs, activities, outputs, and outcomes. Inputs and activities are elements that are internal to the company, while outputs and outcomes are external.

Remember, there are many different names for the sections of strategic plans. The key is to agree what terms you will use and define them for everyone involved.

Inputs are important because it is impossible to know where you are going until you know what is around you where you are now.

Companies need to gather data from a variety of sources to get a clear look at the competitive environment and the opportunities and risks within that environment. You can think of it like a competitive intelligence program.

Data should come from the following sources:

Interviews with executives

A review of documents about the competition or market that are publicly available

Primary research by visiting or observing competitors

Studies of your industry

The values of key stakeholders

This information often goes into writing an organization’s vision and mission statements.

Activities are the meetings and other communications that need to happen during the strategic planning process to help everyone understand the competition that surrounds the organization.

It is important both to understand the competitive environment and your company’s response to it. This is where everyone looks at and responds to the data gathered from the inputs.

The strategic planning process produces outputs. Outputs can be as basic as the strategic planning document itself. The documentation and communications that describe your organization’s strategy, as well as financial statements and budgets, can also be outputs.

The implementation of the strategic plan produces outcomes (distinct from outputs). The outcomes determine the success or failure of the strategic plan by measuring how close they are to the goals and vision you outline in your plan.

It is important to understand there will be unplanned and unintended outcomes, too. How you learn from and adapt to these changes influence the success of the strategic plan.

During the planning process, decide how you will measure both the successes and failures of different parts of the strategic plan.

Sharing, Evaluating, and Monitoring the Progress of a Strategic Plan

After companies go through a lengthy strategic planning process, it is important that the plan does not sit and collect dust. Share, evaluate, and monitor the plan to assess how you are doing and make any necessary updates.

“[Some] leaders think that once they have their strategy, it’s up to someone else to execute it. That’s a mistake I see,” Stockmal says.

The process begins with distributing and communicating the plan. Decide who will get a copy of the plan and how those people will tell others about it. Will you have a meeting to kick off the implementation? How will you specify who will do what and when? Clearly communicate the roles people will have.

“Before you communicate the plan [to everyone], you need to have the commitment of stakeholders,” Hofmeyer recommends. Have the stakeholders be a part of announcing the plan to everyone — this keeps them accountable because workers will associate them with the strategy. “That applies pressure to the stakeholders to actually do the work.”

Once the team begins implementation, it’s necessary to have benchmarks to help measure your successes against the plan’s objectives. Sometimes, having smaller action plans within the larger plan can help keep the work on track.

During the planning process, you should have decided how you will measure success. Now, figure out how and when you will document progress. Keep an eye out for gaps between the vision and its implementation — a big gap could be a sign that you are deviating from the plan.

Tools are available to assist with tracking performance of strategic plans, including several types of software. “For some organizations, a spreadsheet is enough, but you are going to manually enter the data, so someone needs to be responsible for that,” Stockmal recommends.

Remember: strategic plans are not written in stone. Some deviation will be necessary, and when it happens, it’s important to understand why it occurred and how the change might impact the company's vision and goals.

Deviation from the plan does not mean failure, reminds Hofmeyer. Instead, understanding what transpired is the key. “Things happen, [and] you should always be on the lookout for that. I’m a firm believer in continuous improvement,” he says. Explain to stakeholders why a change is taking place. “There’s always a sense of re-evaluation, but do it methodically.”

Build in a schedule to review and amend the plan as necessary; this can help keep companies on track.

What Is Strategic Management?

Strategic planning is part of strategic management, and it involves the activities that make the strategic plan a reality. Essentially, strategic management is getting from the starting point to the goal effectively and efficiently using the ongoing activities and processes that a company takes on in order to keep in line with its mission, vision, and strategic plan.

“[Strategic management] closes the gap between the plan and executing the strategy,” Stockmal of ASP says. Strategic management is part of a larger planning process that includes budgeting, forecasting, capital allocation, and more.

There is no right or wrong way to do strategic management — only guidelines. The basic phases are preparing for strategic planning, creating the strategic plan, and implementing that plan.

No matter how you manage your plan, it’s key to allow the strategic plan to evolve and grow as necessary, due to both the internal and external factors.

“We get caught up in all of the day-to-day issues,” Stockmal explains, adding that people do not often leave enough time for implementing the plan and making progress. That’s what strategic management implores: doing things that are in the plan and not letting the plan sit on a shelf.

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Strategic Planning

The art of formulating business strategies, implementing them, and evaluating their impact based on organizational objectives

What is Strategic Planning?

Strategic planning is the art of creating specific business strategies, implementing them, and evaluating the results of executing the plan, in regard to a company’s overall long-term goals or desires. It is a concept that focuses on integrating various departments (such as accounting and finance, marketing, and human resources) within a company to accomplish its strategic goals. The term strategic planning is essentially synonymous with strategic management.

The concept of strategic planning originally became popular in the 1950s and 1960s, and enjoyed favor in the corporate world up until the 1980s, when it somewhat fell out of favor. However, enthusiasm for strategic business planning was revived in the 1990s and strategic planning remains relevant in modern business.

CFI’s Course on Corporate & Business Strategy is an elective course for the FMVA Program.

Strategic Planning Process

The strategic planning process requires considerable thought and planning on the part of a company’s upper-level management. Before settling on a plan of action and then determining how to strategically implement it, executives may consider many possible options. In the end, a company’s management will, hopefully, settle on a strategy that is most likely to produce positive results (usually defined as improving the company’s bottom line) and that can be executed in a cost-efficient manner with a high likelihood of success, while avoiding undue financial risk.

The development and execution of strategic planning are typically viewed as consisting of being performed in three critical steps:

1. Strategy Formulation

In the process of formulating a strategy, a company will first assess its current situation by performing an internal and external audit. The purpose of this is to help identify the organization’s strengths and weaknesses, as well as opportunities and threats ( SWOT Analysis ). As a result of the analysis, managers decide on which plans or markets they should focus on or abandon, how to best allocate the company’s resources, and whether to take actions such as expanding operations through a joint venture or merger.

Business strategies have long-term effects on organizational success. Only upper management executives are usually authorized to assign the resources necessary for their implementation.

2. Strategy Implementation

After a strategy is formulated, the company needs to establish specific targets or goals related to putting the strategy into action, and allocate resources for the strategy’s execution. The success of the implementation stage is often determined by how good a job upper management does in regard to clearly communicating the chosen strategy throughout the company and getting all of its employees to “buy into” the desire to put the strategy into action.

Effective strategy implementation involves developing a solid structure, or framework, for implementing the strategy, maximizing the utilization of relevant resources, and redirecting marketing efforts in line with the strategy’s goals and objectives.

3. Strategy Evaluation

Any savvy business person knows that success today does not guarantee success tomorrow. As such, it is important for managers to evaluate the performance of a chosen strategy after the implementation phase.

Strategy evaluation involves three crucial activities: reviewing the internal and external factors affecting the implementation of the strategy, measuring performance, and taking corrective steps to make the strategy more effective. For example, after implementing a strategy to improve customer service, a company may discover that it needs to adopt a new customer relationship management (CRM) software program in order to attain the desired improvements in customer relations.

All three steps in strategic planning occur within three hierarchical levels: upper management, middle management, and operational levels. Thus, it is imperative to foster communication and interaction among employees and managers at all levels, so as to help the firm to operate as a more functional and effective team.

Benefits of Strategic Planning

The volatility of the business environment causes many firms to adopt reactive strategies rather than proactive ones. However, reactive strategies are typically only viable for the short-term, even though they may require spending a significant amount of resources and time to execute. Strategic planning helps firms prepare proactively and address issues with a more long-term view. They enable a company to initiate influence instead of just responding to situations.

Among the primary benefits derived from strategic planning are the following:

1. Helps formulate better strategies using a logical, systematic approach

This is often the most important benefit. Some studies show that the strategic planning process itself makes a significant contribution to improving a company’s overall performance, regardless of the success of a specific strategy.

2. Enhanced communication between employers and employees

Communication is crucial to the success of the strategic planning process. It is initiated through participation and dialogue among the managers and employees, which shows their commitment to achieving organizational goals.

Strategic planning also helps managers and employees show commitment to the organization’s goals. This is because they know what the company is doing and the reasons behind it. Strategic planning makes organizational goals and objectives real, and employees can more readily understand the relationship between their performance, the company’s success, and compensation. As a result, both employees and managers tend to become more innovative and creative, which fosters further growth of the company.

3. Empowers individuals working in the organization

The increased dialogue and communication across all stages of the process strengthens employees’ sense of effectiveness and importance in the company’s overall success. For this reason, it is important for companies to decentralize the strategic planning process by involving lower-level managers and employees throughout the organization. A good example is that of the Walt Disney Co., which dissolved its separate strategic planning department, in favor of assigning the planning roles to individual Disney business divisions.

An increasing number of companies use strategic planning to formulate and implement effective decisions. While planning requires a significant amount of time, effort, and money, a well-thought-out strategic plan efficiently fosters company growth, goal achievement, and employee satisfaction.

Additional Resources

Thank you for reading CFI’s guide to Strategic Planning. To keep learning and advancing your career, the additional CFI resources below will be useful:

• Broad Factors Analysis
• Scalability
• Systems Thinking
• See all management & strategy resources
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More Like this

What is the difference between a business plan and a strategic plan.

It is not uncommon that the terms ‘strategic plan’ and ‘business plan’ get confused in the business world. While a strategic plan is a type of business plan, there are several important distinctions between the two types that are worth noting. Before beginning your strategic planning process or strategy implementation, look at the article below to learn the key difference between a business vs strategic plan and how each are important to your organization.

Definition of a business plan vs. a strategic plan

A strategic plan is essential for already established organizations looking for a way to manage and implement their strategic direction and future growth. Strategic planning is future-focused and serves as a roadmap to outline where the organization is going over the next 3-5 years (or more) and the steps it will take to get there.

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A strategic plan serves 6 functions for an organization that is striving to reach the next level of their growth:.

• Defines the purpose of the organization.
• Builds on an organization’s competitive advantages.
• Communicates the strategy to the staff.
• Prioritizes the financial needs of the organization.
• Directs the team to move from plan to action.
• Creates long-term sustainability and growth impact

Alternatively, a business plan is used by new businesses or organizations trying to get off the ground. The fundamentals of a business plan focus on setting the foundation for the business or organization. While it looks towards the future, the focus is set more on the immediate future (>1 year). Some of the functions of a business plan may overlap with a strategic plan. However, the focus and intentions diverge in a few key areas.

A business plan for new businesses, projects, or organizations serves these 5 functions:

• Simplifies or explains the objectives and goals of your organization.
• Coordinates human resource management and determines operational requirements.
• Secures funding for your organization.
• Evaluates potential business prospects.
• Creates a framework for conceptualizing ideas.

In other words, a strategic plan is utilized to direct the momentum and growth of an established company or organization. In contrast, a business plan is meant to set the foundation of a newly (or not quite) developed company by setting up its operational teams, strategizing ways to enter a new market, and obtaining funding.

A strategic plan focuses on long-term growth and the organization’s impact on the market and its customers. Meanwhile, a business plan must focus more on the short-term, day-to-day operational functions. Often, new businesses don’t have the capacity or resources to create a strategic plan, though developing a business plan with strategy elements is never a bad idea.

Business and strategic plans ultimately differ in several key areas–timeframe, target audience, focus, resource allocation, nature, and scalability.

While both a strategic and business plan is forward-facing and focused on future success, a business plan is focused on the more immediate future. A business plan normally looks ahead no further than one year. A business plan is set up to measure success within a 3- to 12-month timeframe and determines what steps a business owner needs to take now to succeed.

A strategic plan generally covers the organizational plan over 3 to 5+ years. It is set with future expansion and development in mind and sets up roadmaps for how the organization will reach its desired future state.

Pro Tip: While a vision statement could benefit a business plan, it is essential to a strategic plan.

Target Audience

A strategic plan is for established companies, businesses, organizations, and owners serious about growing their organizations. A strategic plan communicates the organization’s direction to the staff and stakeholders. The strategic plan is communicated to the essential change makers in the organization who will have a hand in making the progress happen.

A business plan could be for new businesses and entrepreneurs who are start-ups. The target audience for the business plan could also be stakeholders, partners, or investors. However, a business plan generally presents the entrepreneur’s ideas to a bank. It is meant to get the necessary people onboard to obtain the funding needed for the project.

A strategic plan provides focus, direction, and action to move the organization from where they are now to where they want to go. A strategic plan may consist of several months of studies, analyses, and other processes to gauge an organization’s current state. The strategy officers may conduct an internal and external analysis, determine competitive advantages, and create a strategy roadmap. They may take the time to redefine their mission, vision, and values statements.

Alternatively, a business plan provides a structure for ideas to define the business initially. It maps out the more tactical beginning stages of the plan.

Pro Tip: A mission statement is useful for business and strategic plans as it helps further define the enterprise’s value and purpose. If an organization never set its mission statement at the beginning stages of its business plan, it can create one for its strategic plan.

A strategic plan is critical to prioritizing resources (time, money, and people) to grow the revenue and increase the return on investment. The strategic plan may start with reallocating current financial resources already being utilized more strategically.

A business plan will focus on the resources the business still needs to obtain, such as vendors, investors, staff, and funding. A business plan is critical if new companies seek funding from banks or investors. It will add accountability and transparency for the organization and tell the funding channels how they plan to grow their business operations and ROI in the first year of the business.

The scalability of a business plan vs. strategic plan

Another way to grasp the difference is by understanding the difference in ‘scale’ between strategic and business plans. Larger organizations with multiple business units and a wide variety of products frequently start their annual planning process with a corporate-driven strategic plan. It is often followed by departmental and marketing plans that work from the Strategic Plan.

Smaller and start-up companies typically use only a business plan to develop all aspects of operations of the business on paper, obtain funding and then start the business.

Why understanding the differences between a business plan vs a strategic plan matters

It is important to know the key differences between the two terms, despite often being used interchangeably. But here’s a simple final explanation:

A business plan explains how a new business will get off the ground. A strategic plan answers where an established organization is going in the future and how they intend to reach that future state.

A strategic plan also focuses on building a sustainable competitive advantage and is futuristic. A business plan is used to assess the viability of a business opportunity and is more tactical.

10 Comments

I agree with your analysis about small companies, but they should do a strategic plan. Just check out how many of the INC 500 companies have an active strategic planning process and they started small. Its about 78%,

Strategic management is a key role of any organization even if belong to small business. it help in growth and also to steam line your values. im agree with kristin.

I agree with what you said, without strategic planning no organization can survive whether it is big or small. Without a clear strategic plan, it is like walking in the darkness.. Best Regards..

Vision, Mission in Business Plan VS Strategic Plan ?

you made a good analysis on strategic plan and Business plan the difference is quite clear now. But on the other hand, it seems that strategic plan and strategic management are similar which I think not correct. Please can you tell us the difference between these two?. Thanks

Thank you. I get points to work on it

super answer Thanking you

Hi. I went through all the discussions, comments and replies. Thanks! I got a very preliminary idea about functions and necessity of Strategic Planning in Business. But currently I am looking for a brief nice, flowery, juicy definition of “Business Strategic Planning” as a whole, which will give anyone a fun and interesting way to understand. Can anyone help me out please? Awaiting replies…… 🙂

that was easy to understand,

Developing a strategic plan either big or small company or organization mostly can’t achieve its goal. A strategic plan or formulation is the first stage of the strategic management plan, therefore, we should be encouraged to develop a strategic management plan. We can develop the best strategic plan but without a clear plan of implementation and evaluation, it will be difficult to achieve goals.

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How To Create A Strategic Plan For Your Business

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No doubt you’ve heard the word “strategy” being thrown around like a frisbee at a cookout. It’s easy to say “we need a strategy” but not so easy to create one. Strategy is a big word, with big meaning. It’s not an easy thing to do, which is why it’s so valuable.

Building a strategy can get very involved, but if you take a look at these five things, you’ll be well on your way to creating a strong strategy for your business.

Discover - When you’ve gathered all of the information you can, it’s time to pull out what you’ve discovered. 

Gathering all of your data, it’s time to pull out the key insights. What did you hear over and over? What was the feedback that really piqued curiosity for you? What was a major barrier you uncovered?

Here is McDonald’s vision statement:  “To be the best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.”

It’s easy to understand where they are going and what they can measure. They outline what “best” means so no one is left in the dark. Employees, customers and share holders all understand this and can see if it’s being accomplished or not. Your vision statement should be clear, specific, relevant, and meaningful, so you can start to create objectives. If you can add in measurability, it’s even better.

Tactics - These are the action steps you’ve laid out to accomplish your objectives. 

When you’ve locked down the objectives that you believe will lead you towards your strategic vision, it’s time to execute. The tactics are the actions steps you and your team will take to make sure the objectives are met. Tactics are all about measurable action with KPI’s attached. KPI (key performance indicators) are the signposts that show you are on the right path. Creating a tactical plan is how you start to execute your strategic plan.

Related: How To Create A Tactical Plan

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How to Create a Winning Business Plan in 9 Critical Steps

• September 7, 2024
• by steven-austin

Starting a business without a plan is like building a house without blueprints – success is largely left to chance. That‘s why over 82% of startups fail in the first year without a business plan guiding activities and goals.

This comprehensive 9-step guide will outline exactly what a business plan is, why you need one, and how to craft a strategic plan tailored to your company‘s needs – no matter the size or stage.

What is a Business Plan and Why It‘s Essential

A business plan is a written document describing your company‘s objectives and how you intend to achieve them. It lays out your products and services, target customers, operations, marketing channels, competitive landscape, management team, financial situation – basically the entire strategy.

In essence, a solid business plan translates your vision on paper into an actionable model for activities. It not only shows potential investors that your venture will deliver substantial ROI but also keeps your internal team aligned.

According to Forbes , companies with a formal business plan grow 30% faster on average than competitors without one. And those seeking investments through pitch competitions often raise 7X more capital with them.

Simply put, no serious business should be without a strategic plan guiding high-level direction – especially in the early days. It brings discipline, focus, and coordination to turning ideas into reality.

Now let‘s dive into the key pieces that come together to create a winning business plan.

Step 1 – Craft a Compelling Executive Summary

The Executive Summary is one of the most critical pieces of a strategic business plan, appearing right up front before any other section. It‘s often the first part investors read to decide if they should continue exploring the opportunity further.

You‘ll want to open with 1-2 concise paragraphs covering:

• Business Concept: Brief yet intriguing explanation of the company‘s purpose, products/services offered, and basic operations.
• Target Customers: Summary of who you plan to sell to.
• Market Opportunity: The problem you’re solving, estimated market size, and competitive advantages you leverage.
• Management Team: Founders’ industry experience and what makes this team equipped to capitalize on the opportunity where others have failed.
• Financial Highlights: Capital needed to get started, projected revenue growth and profitability, expected 5-year ROI for investors.

The goal of the Executive Summary is to intrigue readers enough to continue through your entire strategic plan – while also establishing credibility around key business facets upfront.

Step 2 – Describe Products/Services Offered

With high-level concepts and opportunity framed, the next section expands on your actual business operations and product details.

Here you‘ll want to explain:

• Company Overview: Official registered name, founders and management bios, headquarters location, legal business entity structure chosen (LLC, S-Corp, C-Corp etc.)
• Company History: Origins story, key developmental milestones achieved, past funding rounds and amounts raised.
• Vision Statement: What eventual success looks like for the company and its place in the industry.
• Products/Services Details: Technical specs, photos, competitive advantages versus alternatives – explaining precisely how and why customers will choose you.

Remember to clearly identify how your offerings uniquely solve target customer pain points better than competitors. Use visuals like product images when possible for added clarity.

Step 3 – Define The Target Customer Profile

Now that readers understand your actual business, you need to help them identify the target customer base you’ll market and sell to.

Outlining addressable demographics is especially important for B2C companies, but also applies to B2B. Be sure to segment users into buyer personas based on real-world data.

Elements to cover include:

• Market Size Estimates: Current industry revenue as well as expected market growth in coming years. This quantifies the total pursuitable opportunity.
• Market Trends: Recent developments, emerging technologies, regulatory changes, or other macro factors driving industry shifts – and how your company will capitalize on them.
• Competitor Analysis: Summary of major players, their relative market share, areas of strength and weakness compared to your offerings.
• Customer Personas: Details on your ideal buyer demographics like gender, age brackets, income levels, common pain points, and reasons they would buy from you.

Thorough market opportunity analysis demonstrates you understand existing customers down to a persona level and crafted your products strategically based on true needs. It signals doing the homework required to compete and win market share.

Step 4 – Map Out Your Go-To-Market Plan

With target users and buying factors framed, smart investors next want to understand how you’ll reach those customers with a sound go-to-market strategy.

This core piece of the strategic puzzle should outline exactly how you plan to attract customers across stages:

• Customer Acquisition Channels: Specific outreach pathways like search ads, referrals, trade shows etc. that align to buyer journey stages
• Lead Nurturing Tactics: How you will develop inbound leads through email, content offers, appointments etc. to become sales qualified. Should map to each persona path.
• Revenue Models: Such as recurring subscriptions, wholesale, marketplace commissions etc. including pricing tiers and structures.
• Sales Projections: Expected customer conversions from investments across growth levers in a multi-year forecast based on conversion rate assumptions.

Investors want to see well-planned, integrated strategies tailored to getting the right messaging to mapped personas, guiding them from unawareness to purchase and retention.

Step 5 – Introduce Your Management Team & Staffing

Even the most impressive market opportunity and well-devised strategy is theoretical without capable hands to execute it daily.

That’s why readers need confidence in the key leaders who will drive growth. For each member of your core team, aim to include:

• Name, Title, Responsibilities: What tactical areas of the business each person owns.
• Relevant Past Experience: Their credentials, training, and previous positions that qualify them to fulfill this role successfully.
• Ownership Stake: What equity share of the company this leader holds. This demonstrates their financial incentives are tied directly to performing well in accelerating business growth.

Essentially, this management team section puts faces to names and proves why they deserve trust to make the opportunity a success using their skills and experience. As a rule of thumb, include biographies for all C-level roles plus department leads.

Step 6 – Map Out Operational Execution

Even if your products and market strategy seem promising on paper, investors want to understand how you‘ll coordinate the complex timing of actions required to build the company.

These execution plans for turning your idea into reality should include:

• Milestones Schedule: Key timeline for dates reaching company growth milestones. Examples may include product development stages, expanding to second office, securing patents, new vertical market launches etc.
• Physical Locations: Whether you‘ll operate a distributed workforce or leasing corporate offices and warehouses. Should link to milestones.
• Mission-Critical Partners: Any third party vendors, suppliers, agencies etc. crucial for delivering your products or services. Investors want to ensure these relationships are reliable.
• Ongoing Operations: Specific schedules and workflows for essential functions like manufacturing, QA testing, maintaining inventory, order fulfillment etc. to meet demand.

Detailing this coordination capability upfront is crucial for investors to understand how you‘ll manage moving parts required to establish real businesses infrastructure beyond just sales.

Step 7 – Develop Current and Future Financial Estimates

What smart investors most want to quantify is how quickly and profitably their money can grow in the opportunity. That’s why no business plan is complete without financial modeling.

Elements to include are:

• Startup Costs: Expected one-time purchases for initial product development, corporate formation, branding etc. even before selling.
• Income Statements: Conservative, realistic projections of multi-year revenue growth, expense ratios, and profitability. Tip: use industry average ratios as a starting point.
• Balance Sheets: Estimating asset and liability changes over time from company equity, debt issuances, inventory builds etc.
• Cash Flow Statements: Multi-year estimates of cash inflows and outflows by business function. This determines how much operating capital infusion might be needed even if profitable on paper.
• Capital Requirements: Articulating exactly how much money you require upfront and any future funding rounds from investors or lenders given financial model assumptions.
• Anticipated ROI: What annual returns investors can expect during the projected investment time horizon based on exit value opportunities.

Advisors caution entrepreneurs to be realistic with early assumptions since most investors understand revenue projections in emerging spaces involve lots of guesswork. Focus valuations on addressing clear market problems. You can always overdeliver for stakeholders if you underpromise at the start!

Step 8 – Define Your Company Mission, Vision and Values

While the preceding sections focus mainly on logistical details, many modern business plans also outline softer elements like:

• Mission Statement: A short paragraph summarizing the company’s reason for being beyond financial motivations. It reminds the founding team why they show up to work each day.
• Vision Statement: Where the company aspires to go in coming years. This is broader and more conceptual than business milestones – more akin to the legacy it strives to leave on the world related to their defined mission.
• Core Values: 4-5 guiding principles that inform daily decisions as the company scales. What behaviors does it expect from staff? What does it stand for in business practices? Conveying values builds confidence you’ll grow sustainably.

With these three pieces combined, investors better understand the heart of your organization beyond spreadsheet numbers. It sets you apart from profit-driven competitors just satisfying shareholders short-term. Think Patagonia’s mission to save the outdoors or Toms Shoes donating to impoverished communities. Defining deeper purpose matters for attracting top talent and loyal brand advocates.

Step 9: Outline How You‘ll Track Meaningful Growth Metrics

As a final section, detail how your leadership team intends to regularly review performance relative to your plan using key growth indicators. This ties results back to original projections and ensures you stay on track or can course correct.

Relevant elements could include setting quarterly targets for:

• Marketing: Web traffic, lead volume, email subscriber gains
• Sales Activity: Calls made, deals won, average deal size
• Financial: Cash runway, net revenue retention
• Customer Success: Product usage, churn rate, NPS scores

Choose 2-5 metrics per department that best indicate business health and growth. Schedule monthly reviews of each – then revisit progress against targets during quarterly planning sessions.

This creates built-in accountability to stick to activities that directly fuel expansion. It also gives investors confidence you won‘t lose focus. If needed, tie compensation and bonuses to these success markers.

Regularly Review and Revise the Strategic Plan

Your business plan provides immense initial value in focusing efforts and clarifying direction across stakeholders – but don‘t just stick it on a shelf once completed!

Treat strategic plans as living documents requiring revision every 6-12 months at minimum. Set calendar reminders accordingly. As your business grows and strategies must adapt, review the plan again to confirm it still reflects realities on the ground.

Done consistently over time, a well-structured business plan both communicated the viability of ideas to investors and guides internal activities. It‘s the blueprint laying foundation to turn entrepreneurial aspirations into game-changing success stories.

So what are you waiting for? Grab the template provided and start crafting a focused, strategic plan tailored to your venture today!

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Write a Business Plan: Essential Tips and Strategies for Entrepreneurs

When starting a new venture or expanding an existing one, it's crucial to write a business plan . A business plan serves as a roadmap for your company's future, outlining your goals and strategies for achieving them. It's a vital tool for attracting investors and securing funding, demonstrating your understanding of your market and industry. Additionally, a well-crafted business plan can help you identify potential challenges and opportunities, allowing you to make informed decisions.

Importance of a Business Plan

The importance of a business plan cannot be overstated. It provides clarity and direction for your business, helping you stay focused on your objectives and navigate any obstacles that may arise. A well-written business plan also serves as a valuable communication tool, allowing you to articulate your vision to potential stakeholders and partners.

Benefits When you Write a Business Plan

When you write a business plan offers numerous benefits beyond securing funding. It forces you to conduct thorough research and analysis, giving you deep insights into your market, competition, and target audience. Moreover, it helps you set realistic financial projections and milestones for measuring success.

Key Components of a Business Plan

A comprehensive business plan typically includes critical components such as an executive summary, company description, market analysis, organization and management structure, product or service line, marketing strategy, financial projections, and funding requirements.

Understanding the Basics

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To start, let's understand what is a business plan. A business plan is a written document that outlines your business's goals and how you plan to achieve them. It serves as a roadmap for your company, guiding decision-making and setting the direction for growth and success.

The purpose of a business plan is to provide a clear vision for your business and communicate that vision to potential investors, partners, and employees. It helps you articulate your strategy, identify potential challenges, and establish measurable goals.

A business plan typically includes an executive summary, company description, market analysis, organization and management structure, product or service line, marketing and sales strategy, funding request, financial projections, and an appendix with supporting documents.

Now that we've got a good grasp of why a business plan is important, let's dive into the different components that make up this crucial document. Understanding each element will help you create a comprehensive and effective business plan that sets you up for success. So, let's take a closer look at what goes into writing a business plan and how each section contributes to the overall success of your business.

Research and Analysis

Quantum Template from Strikingly

Market research is essential for business planning . It is crucial for understanding your target market, identifying customer needs, and assessing the demand for your products or services. Conducting surveys, analyzing industry reports, and gathering data on consumer behavior are crucial steps in this process.

Competition analysis involves studying your competitors' strengths and weaknesses, identifying potential threats, and finding opportunities to differentiate your business. This helps you position your products or services effectively in the market and develop strategies to gain a competitive edge.

SWOT analysis for business planning involves evaluating the strengths, weaknesses, opportunities, and threats that can impact your business. Identifying internal strengths and weaknesses as well as external opportunities and threats helps make informed decisions and develop a robust business strategy.

How to Write a Business Plan

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When you write a business plan is essential for any entrepreneur or business owner. It provides a roadmap for the future of your business and helps you communicate your vision to potential investors or partners. Creating a compelling business plan can also help you identify pitfalls and opportunities, giving you a better chance at success.

Executive Summary

The executive summary is a brief overview of your business plan, covering the key points such as your company's mission, goals, and financial projections. It should be concise yet compelling, grabbing the reader's attention and giving them a clear understanding of what your business is all about.

Company Description

In this section, you'll need to provide detailed information about your company, including its history, mission statement, and legal structure. You also highlighted what sets your company apart from others in the industry and why customers should choose your products or services over those of competitors.

Products and Services

This part of the business plan outlines what you offer customers and how it fulfills their needs or solves their problems. You'll need to describe each product or service in detail, including its features, benefits, and pricing strategy. It's important to demonstrate how your offerings provide value to potential customers clearly.

Remember that creating a business plan is not just about getting funding; it's also about setting goals for yourself and building a roadmap for future success. By carefully crafting each section of your business plan with these keywords in mind - write a business plan, how to write business plan - you can ensure that it effectively communicates the value of your business and its growth potential.

Financial Projections

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When you write a business plan, it's crucial to include financial statements and projections to demonstrate your business's financial viability. This section should include income statements, balance sheets, and cash flow statements that clearly show your company's financial health. By projecting future financial performance based on historical data and market trends, you can showcase your business's potential profitability to investors and stakeholders.

Financial Statements and Projections

In this section, you'll need to present detailed financial statements such as profit and loss, balance sheets, and cash flow projections. These documents provide an overview of your company's financial position and performance over a specific period. By including these statements in your business plan, you can give potential investors insight into how your business is expected to perform financially.

Break-even Analysis

Another essential component of financial projections is the break-even analysis, which helps you determine the point at which your total revenue equals your total costs. This analysis lets you understand how much product or service you need to sell to cover all expenses and generate profits. By including a break-even analysis in your business plan, you can demonstrate a clear understanding of your cost structure and pricing strategy.

Funding Requirements

This section outlines the funding requirements for launching or growing your business. Whether you're seeking investment from venture capitalists or applying for a small business loan, it's essential to clearly state how much funding you need and how it will be utilized within your business operations. By providing detailed information about funding requirements in your business plan, you can show potential investors that their capital will be put to good use.

Implementation and Review

After you have written your business plan, the next step is to implement it. The action plan for execution outlines the specific steps you need to take to achieve your business goals. This includes assigning responsibilities, setting deadlines, and allocating resources effectively. It's essential to have a clear roadmap for implementation to ensure that your business plan translates into real-world success.

Action Plan for Execution

Your action plan should detail the tasks that need to be completed, who will be responsible for each task, and the timeline for completion. This will help you stay organized and focused as you work towards achieving your business objectives. By breaking down larger goals into smaller actionable steps, you can make progress more manageable and trackable.

Milestones and Metrics

Setting milestones and metrics is crucial for monitoring the progress of your business plan implementation. Milestones are vital achievements or events that indicate progress toward your goals, while metrics are quantifiable measures to track performance. By establishing clear milestones and metrics, you can assess whether your business is on track and make any necessary adjustments along the way.

Regular Review and Updates

Regularly reviewing and updating your business plan is essential for keeping it relevant and effective. As your business evolves, market conditions change, or new opportunities arise, you must revisit your strategy and make necessary adjustments. By staying proactive in reviewing and updating your business plan, you can ensure that it remains a valuable tool for guiding your business toward success.

Strikingly Features for Business Planning

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Strikingly is an excellent platform for creating business plans because of its user-friendly interface and intuitive design tools. Whether you're a seasoned entrepreneur or just starting, Strikingly makes it easy to write a business plan that is both professional and visually appealing.

Using Strikingly for Creating Business Plans

In today's competitive business landscape, a well-crafted business plan is essential for outlining your vision, securing funding, and guiding your entrepreneurial journey. Strikingly, with its user-friendly platform and powerful features, empowers you to create comprehensive and professional business plans that effectively communicate your ideas.

• Executive Summary. Provide a concise overview of your business, including your mission, vision, products or services, target market, and financial projections. Strikingly's platform allows you to create a visually appealing executive summary.
• Market Analysis. Conduct thorough market research to understand your industry, target market, competitors, and trends. Strikingly's analytics tools can help you gather market data.
• Company Description. Clearly articulate your company's purpose, values, and unique selling proposition (USP). Strikingly's platform allows you to create a compelling company description.
• Products or Services. Detail your offerings, including their features, benefits, and pricing. Strikingly's e-commerce features can be used to showcase your products or services.
• Marketing and Sales Strategy. Outline your marketing and sales plan, including your target audience, marketing channels, and sales tactics. Strikingly's platform allows you to create landing pages and capture leads.
• Operations Plan. Describe your business operations, including your team, facilities, and supply chain.
• Financial Projections. Develop realistic financial projections, including income statements, balance sheets, and cash flow statements. Strikingly's integration with financial tools can help you create financial projections.
• Management Team. Introduce your management team and their qualifications. Strikingly's platform allows you to create team profiles.
• Funding Request. If seeking funding, outline your funding requirements and how the funds will be used.
• Appendix. Include supporting documents, such as resumes, permits, or licenses. Strikingly's platform allows you to upload supporting documents.

Strikingly's Advantages for Business Plan Creation

• User-Friendly Interface. Strikingly's platform is easy to use, even for those without technical expertise.
• Customizable Templates. Choose a template that aligns with your business plan's structure and create a professional presentation.
• Content Creation Tools. Easily create and edit your business plan's content, including text, images, and charts.
• Collaboration Features. Collaborate with your team members to develop and refine your business plan.
• Analytics Integration. Track your progress and measure the effectiveness of your business plan using Strikingly's analytics tools.
• Presentation Features. Create visually appealing presentations to showcase your business plan to investors or stakeholders.
• Lead Capture. Capture leads from potential investors or partners using Strikingly's lead generation forms.
• Mobile Optimization. Ensure your business plan is accessible on mobile devices, as many investors and stakeholders review plans on their smartphones or tablets.
• Scalability. As your business grows, Strikingly's platform can scale to accommodate your expanding needs.
• Customer Support. Receive assistance and support from Strikingly's dedicated customer service team.

By leveraging Strikingly's platform and following these steps, you can create a comprehensive and persuasive business plan that effectively communicates your vision and attracts the support you need to succeed. Remember, a well-crafted business plan is an essential tool for any entrepreneur.

Templates for Business Plans

Strikingly offers a variety of fully customizable business plan templates. From traditional text-based layouts to more visual, infographic-style designs, there's something for everyone. These templates provide a solid foundation and can be easily tailored to reflect your unique business concept.

Customization and Collaboration Features

One of Strikingly's standout features is its customization options, which allow you to personalize every aspect of your business plan to align with your brand identity . Additionally, the platform supports collaboration among team members or stakeholders, making it easy to gather feedback and input from others while working on your business plan.

Mannheim Template from Strikingly

As you write a business plan, remember to keep it concise and focused on your goals. Communicate your ideas effectively using clear and straightforward language. Avoid using jargon or technical terms that may confuse your audience.

When you write a business plan, it's important to highlight the unique value proposition of your business and how it will address the needs of your target market . Clearly outline your financial projections, marketing strategies, and operational plans to demonstrate the potential success of your business. Remember to regularly review and update your business plan as your company grows and evolves to ensure that it remains relevant and aligned with your goals.

Final Tips When You Write a Business Plan

Conduct thorough research and analysis to support your strategies and projections when creating a business plan. Be realistic in your financial projections and consider various scenarios to prepare for potential challenges.

Resources for Creating a Business Plan

Many online tools and templates are available to help you create a professional business plan. Look for reputable sources that offer guidance on writing different sections of the plan and examples of successful plans for reference.

After completing your business plan, it's crucial to revisit and revise it regularly to reflect changes in the market or your business environment. Track your progress and update the plan accordingly to stay aligned with your objectives.

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Self Storage Business Plan

Many people tend to want to find a place where they can store anything, may it be cold food items, grain, or even household items they may not have space to store at home. Even when it means that the production or the work they do can be stored somewhere else, they will find a way for that. It goes without saying to be able to do this as a form of business venture, you have to at least be prepared for anything. As they will always say it is best to have all your plans from A to Z. It is no secret that having a place to store the things you want and need is quite helpful as well. But before you are going to do that, do you have a business plan to back up the reason for having a self-storage business? You know you need one. So here are examples you can download for such use. 

8+ Self-Storage Business Plan Examples

1. free self-storage business plan template.

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2. Self-Storage Business Marketing Plan Template

3. Cold-Chain Self Storage Business Plan

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4. Editable Self-Storage Business Planning

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5. Portable Self-Storage Business Plan

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6. Sample Self-Storage Business Plan

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7. Self Cold Storage Business Plan

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8. Self-Storage Business operation plan

9. Self-Storage Facility Development Business Plan

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What Is a Self-Storage Business Plan?

We know that a business plan is a helpful tool used wherein a summary of your strategies is going to be written. A self-storage business plan is a kind of business plan that shows the strategic, comprehensive, and simplest ways to write down what you want to happen for your self-storage business. A management plan. The contents of your business plan will show you the big picture of how your business will grow in the future or at a specific time. In addition to that, a self-storage business plan also helps you write down your goals, objectives, and strategies and how you are going to achieve them. Milestones are also written in order to see how far you have achieved. For a self-storage business owner, a self-storage business plan is a tool they need in order to attain this goal.

How to Construct a Self-Storage Business Plan

Making a self-storage business plan is useful. You may already have heard of that reason before, but it is true. Working on any kind of business plan for your business is useful. Now, you may also already have an idea set in mind for making that self-storage business plan of yours. But it won’t hurt to take a look at these other guidelines to set it up.

1. Draft and Outline Your Self Storage Business Plan

Making a draft and outlining your business plan will be a great help for you. It is also going to be easier if you do this step first before going through the final output. Drafting out your business plan does not mean you are wasting time on it, it simply means that you are meticulous with what you want to happen. To make it even better while you draft it out, use the SMART method for your business plan.

2. List the Tools and the Strategies

Make a checklist or list down the tools and the strategies you are going to be doing for your self-storage business. Making a checklist for the tools is going to be easier for you to list down the necessary things you may need and the right tools to make it work as well. As for the strategies, your strategies must be doable and can help you make your storage business a success. This is why when you think about your strategies, think about how they can make your business a success.

3. Define Your Goals and Objectives

Define the goals and objectives in your business plan. When in doubt, remember the SMART method for your business plan. The goal of your business plan has to be what your self-storage is about. The same goes for your objectives. It should be doable, possible, and well-rounded objectives.

4. Set Up Milestones for Your Business Plan

Milestones for your business plan help maintain where you are in the business plan. It also helps you in a way that gives you a bigger picture of how well the business plan is going. In addition to that, the milestone is also going to be the stepping stone for making your self-storage business flourish.

What is a self-storage business plan?

A self-storage business plan is a kind of business plan that provides an outline of a strategic tool to make your business flourish. It is a roadmap to do your self-storage business without having to go through a lot of risks that go with the job.

Why is it always important to have a business plan?

The reason why a lot of business owners use a business plan is to help them avoid risks that go with the business. It also helps them by giving them a guide to what works and what does not. Without a business plan, most businesses may not be as successful as those with business plans.

What should not be in a self-storage business plan?

What should not be in a self-storage business plan is strategies that are too impossible to do. Strategies should be doable. These strategies help you with your business.

A self-storage business is like any other kind of business. It will need a business plan that will help it flourish. When you have no idea as to how to start one, you can always outline and draft. Define your goals and objectives; you must know what you want to expect in your business plan and go from there.

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3 Business Strategy Examples to Inspire Your Own

• 03 Nov 2022

Successful businesses often change the way the world lives. Consider Apple, Google, and Netflix and the immense value each offers customers. Despite ambitious profit margins, the companies' business strategies didn't stem solely from financial goals. Each prioritized consumer value through innovations such as smartphones, faster search engines, and video streaming.

If you want to develop a successful business strategy, here's an overview of value creation, how to create value, and examples of companies successfully implementing it into their business models.

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What Is a Value-Based Business Strategy?

Creating value for the customer and company determines whether a business strategy is successful. According to Harvard Business School Professor Felix Oberholzer-Gee in the HBS Online course Business Strategy , "These companies don't win by having the best product or most impressive service. They win by creating the most value."

While this can be difficult to visualize, the value stick framework illustrates how a company can maximize profit while creating more value for its customers, suppliers, and stakeholders.

The value stick is a graph comprised of four components: willingness to pay (WTP), price, cost, and willingness to sell (WTS). Each segment represents how a sale's value is split between a firm, its customers, and suppliers. While each component leads to value, two levers create it: WTP and WTS.

To better understand how these components aid value-based business strategies , here are examples of how you can implement them in your organization.

Raising WTP

Willingness to pay (WTP) refers to the highest price a customer is willing to pay for a product or service. This calculation determines the threshold at which customers are more likely to make a purchase. Any slight imbalance in this number can deter, or even dissuade, consumers from purchasing. Only when a customer is delighted by a product or service are they willing to pay more.

Companies need to know their customer's WTP to remain profitable. According to HBS Online's Business Strategy course, it's influenced by the functional attributes of the product or service and other considerations, including:

• Business sustainability: Is the product or service environmentally sound?
• Social status: Does the media give your product or service additional value?
• Market influence: Does your product or service inspire your competition?

Raising WTP can be an effective strategy for companies interested in increasing profit margins. This difficult balancing act requires an understanding of the product and target consumer. Business Strategy identifies three main mechanisms for raising WTP:

• Conferring status: Earning "status" granted by media and the consumers to gain more value through public attention and brand legitimacy
• Reducing uncertainty: Ensuring quality and purpose within an organization, so customers know what to expect with your product and service every time
• Forming tastes: Taking the time to get your brand to the consumer as soon as possible because of nostalgic drivers

Lowering WTS

Willingness to sell (WTS) is the lowest price suppliers are willing to accept in exchange for materials needed to create products or services. Just as customers must weigh personal versus monetary value in determining whether they want to participate in a transaction, so do suppliers.

Another way to measure WTS is by considering employee engagement and retention. One of the most valuable assets a company has is its talent. Effective leaders nurture and develop employees to ensure salary isn't their only motivator.

Lowering WTS for one or both of these groups can be an effective business strategy for companies that can't raise their WTP. For example, companies that can motivate employees to work for a lower cost by providing value in other ways—such as benefits packages, flexible work hours, and generous paid time off—can lower WTS. Another method of lowering WTS is creating value for suppliers. This can take the form of additional warehouse space or long-term contracts.

3 Companies With Successful Business Strategies

One of the best ways to learn about business strategy is from real-world examples. Here are three companies that faced numerous challenges but overcame them through value-based business strategies.

1. Best Buy

Best Buy, the multinational electronics retailer, is an excellent example of how a shift in business strategy can lead to rapid growth. In 2012, Best Buy faced fierce market competition with online platforms like Amazon and big-box stores like Walmart and Home Depot. As a result, the company lost over a billion dollars in revenue in a single quarter.

Rather than closing stores or developing new products, Best Buy's leadership decided to leverage an existing asset not being utilized to its full potential: its storefronts. Best Buy started using its stores as "mini warehouses," providing faster shipping times, easier customer pick-up, and improved product availability. As a result of enhancing convenience for the customer, Best Buy increased its WTP.

Best Buy is an exceptional example of a value-based business strategy because it subsequently lowered WTS with this initiative. By keeping the vast network of stores intact and allowing vendors to build showrooms within its stores, Best Buy provided a cost-effective option for its vendors. This additional value lowered vendors' WTS, leading to product discounts.

As the largest sportswear manufacturer of shoes, clothing, and accessories, Nike has become one of the world's leading global sports brands. While much of Nike's success has come from its iconic products, it's also resulted from effective business strategies that out-compete in today's crowded sportswear market.

Value-based pricing greatly contributed to the company's reported global revenue of more than $44 billion in 2021 . For example, Nike has consistently leveraged consumers' perceptions of its products to drive prices up within their WTP. Nike can do this by creating the highest quality products to justify charging a premium price.

Many of Nike's competitors struggle to follow this same business model because of Nike's most valuable asset: its image. Company leadership at Nike has long understood that its pricing model isn't just reflected in the quality of its products but in the influence of its logo. By understanding its social and market influence, Nike's exclusive products, such as Air Jordans, have contributed to driving its perceived value to an even higher level. As a result, brand value and customer loyalty are two major pillars of Nike's long-term success at consistently raising its customer's WTP.

3. Starbucks

The world's largest coffeehouse chain, Starbucks, also needed to adopt a value-based strategy to gain market domination. In 2008, Starbucks faced immense financial pressure from increasing fast-food chain competition, rising prices in food and supplies, and global strains on coffee trading. In fact, by March 30, 2008, its profits had fallen nearly 28 percent compared to the previous year, leading to 300 closed stores and 6,700 employee layoffs.

To combat these challenges, Starbucks focused on better understanding the company's WTP. According to a letter by Starbucks CEO Howard Shultz, "The company must shift its focus away from bureaucracy and back to customers. We need to reignite the emotional attachment with our customers."

One method of doing this was the "My Starbucks Idea." Its goal was to create a space for customers to exchange ideas with each other and the company about Starbucks' products, services, stores, and corporate social responsibility . With nearly 93,000 ideas recorded and 1.3 million newly generated on social media, Starbucks tapped into what their customers cared about most.

Understanding what drives customer value led to many business model changes synonymous with Starbucks today. For example, free Wi-Fi, lounge chairs, and Starbucks' rewards program all sparked from customer feedback and forums. As a result, Starbucks is widely known as one of the fast-food chains with the highest WTP because of its loyal customer base.

Making Profits the Outcome, Not the Goal

Companies considering a shift in business strategy are often facing financial hardships. Whether an impending bankruptcy, decreasing profit margins, or increasing employee turnover, business strategies are meant to solve these problems. Yet, this isn't where your strategy should start.

"Profit is not the goal," says Oberholzer-Gee in HBS Online's Business Strategy course. "You treat it as an outcome. It's people first, then business."

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Hedge fund turned to a wargame to plan for a Chinese invasion of Taiwan

• A Chinese takeover of Taiwan risks investments there and far beyond.
• A hedge fund turned to a tabletop wargame to see how the crisis could play out.
• It made clear a war would swamp tech stocks and rattle the global economy.

As China's fleets and bombers stalk the narrow strait and threaten Taiwan's seven decades of de facto self-rule, a British hedge fund commissioned a wargame to answer an increasingly pressing question: What is the optimum strategy for investors if China invades?

Taiwan is the world's leading supplier of the semiconductor chips essential to electronics of all kinds, from fighter jets and supercomputers to dishwashers, and a Chinese takeover of Taiwan's industry would immediately buzzcut exposed investors. But the wargame makes clear that would be the first wave in an economic tsunami.

"The conclusion was that most investing entities would take a huge hit and keep being hit for months to follow, with many likely collapsing," Finley Grimble, president of Knightsbridge Strategic Group, the British consultancy that designed and ran the game, told Business Insider. "Opportunities could follow a bit later though for those who survive."

Wargaming is a common technique in government and military circles to explore issues and assess potential responses. But it also is becoming popular in business as a way to prepare for crises like this that would send tremors through the world's economy and short-circuit tech stocks.

In the case of the British hedge fund, which Knightsbridge did not identify, the tabletop game began with China invading Taiwan on May 2, 2025 — two years before a reported Chinese mandate to be ready. The hedge fund players (played by actual officials of the hedge fund in question) responded by "liquidating as many of its investments as possible in all adjacent countries to the South China Sea, and rapidly reducing its exposure to investments reliant on South China Sea freedom of navigation," according to KSG's summary report.

But this still left the fund with substantial exposure to its global investment, including those in the US and Europe. The next step was to shift investments toward US government bonds, buying US dollars, and investing in South America. "The major short- to medium-term decision taken was to pull out of high-tech companies given semiconductor chip shortages were likely on the horizon, which would harm the share price of tech giants," KSG noted.

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In the second phase of the game, soon after the Chinese invasion began , US forces were said to have engaged and stopped the Chinese amphibious assault, though China continued to bombard Taiwan.

In the economic sphere, the EU, as well as the US, Japan, South Korea and Australia imposed sanctions on China.

This caught the hedge fund players by surprise: they had assumed EU sanctions were unlikely because of the depth of China-Europe trade , which reached $815 billion annually in 2023. The hedge fund "agreed that any room for avoiding a total divestment from China and the South China Sea was now completely lost, and market re-entry was probably many years away."

The final phase of the wargame began a month into the war. Global trade was said to be in crisis, the US had imposed a blockade on goods headed toward China, and there was a global rush to buy gold as a safe haven, along with US Treasury bills and high-quality US dollar assets. There was also stress on the global financial systems, including more and larger stock margin calls, more hedging, stiffer demands for collateral, higher credit spreads and deteriorating credit quality.

"Experts in finance assessed that this scenario did not look so dissimilar to the early stages of the 2008 financial crisis, the impact of Covid-19, the First Gulf War, and the Russian invasion of Ukraine," KSG noted. To be sure, China's economy is nearly nine times the size of Russia's as estimated by GDP.

The hedge fund responded by choosing to invest heavily in semiconductors manufactured in regions not affected by the war. The fund also boosted investments in the defense industry and, on the assumption that the war would drive up energy prices, also invested in oil and alternative energy.

A post-game analysis by former British government economists and security experts, as well as a former investment banker, concluded that a Chinese invasion of Taiwan would devastate the world economy far more than even the 2008 meltdown .

Governments would pump liquidity into their economies for years to come, including investing in semiconductor manufacturing. If an invasion of Taiwan resulted in sanctions on China, this might be a boon to Western manufacturers who would no longer have Chinese competition (though consumers might be unhappy as lack of competition drives up prices).

An interesting side effect would be that Chinese investment in the so-called Global South — which includes Africa, the Middle East and Southeast Asia — would probably be slashed, leaving space for other lenders to step in. "This would provide potential opportunities for new players to emerge in the Global South, particularly if loans can be collateralized," Knightsbridge noted. "A major example of this would be mining in Zimbabwe."

In the end, the value of business wargames is that they give companies and investors a chance to go beyond theory and explore the consequences of making various choices.

"It's easy to think about consequences in your own head, or in a regular meeting," Grimble said. "But a wargame allows for consequences to be examined, and that is vital for entities looking to invest enormous sums of money and compare options, or prepare mitigations and alternatives in a time of urgency."

Michael Peck is a defense writer whose work has appeared in Forbes, Defense News, Foreign Policy magazine, and other publications. He holds an MA in political science from Rutgers Univ. Follow him on Twitter and LinkedIn .

Watch: China shows how it would attack Taiwan as tensions rise

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BLM Tucson Field Office Recreation Fee Sites and Areas Draft Business Plan

This draft business plan was prepared by the Bureau of Land Management’s Tucson Field Office pursuant to the Federal Lands Recreation Enhancement Act of 2004 (16 U.S.C. 6801-6814) and BLM recreation fee program policies. It establishes future management goals and priorities for the Gila River Recreation Sites , Las Cienegas National Conservation Area , Ironwood Forest National Monument and San Pedro Riparian National Conservation Area within the Tucson Field Office .

Public comment period now open

We announced a public comment period on Sept. 6, 2024.

You can provide comment on this draft business plan by emailing  [email protected]  with the subject line "TFO Business Plan" or by delivering/mailing comments to: 

BLM Tucson Field Office

3201 E Universal Way

Tucson, AZ 85756

Comments must be received by Oct. 21, 2024.

To learn more about draft business plans across the state, read the announcement and visit our  interactive StoryMap .

Click the link below to read the draft business plan.

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