Why you need both to grow your business
If you’re a small business owner, you’ve probably heard of a business plan. It’s the guide you create early on to figure out what your business will do and how it will make money. But what about a strategic plan? How is it different?
Let’s break it down in simple terms to understand why you need both plans to grow your business.
What Is a Business Plan?
A business plan is a roadmap for your business. It outlines:
- Mission and Vision: What your business wants to do and where it’s going.
- Market Research: Who your customers are, who your competitors are, and what’s going on in your industry.
- Operational Plan: How your business runs day-to-day, like staffing and logistics.
- Financial Projections: How much money you expect to make and spend.
Usually, a business plan helps you get started and can even help you get money to fund your business. It focuses on what you plan to do and how you’ll do it.
What Is a Strategic Plan?
A strategic plan focuses on the why and where of your business. Is all about the big picture, helping you:
- Set long-term goals that go beyond just making money right now.
- Find opportunities to grow and avoid threats.
- Use resources wisely to reach your goals.
- Measure progress and change plans when necessary.
Unlike the business plan, a strategic plan keeps changing as your business grows and helps you make decisions along the way.
If you don’t think about the why and where, your business growth may stall. Take Amanda, for example—she was juggling everything in her business and believed better marketing was the key to growth. But without a clear plan for how and when to scale her business or handle changes, her marketing efforts didn’t lead to the long-term success she wanted. Instead, it added to her already overwhelming workload. Without a big-picture plan, working hard isn’t always working smart.
Key Differences Between a Business Plan and a Strategic Plan
| Aspect | Business Plan | Strategic Plan |
|---|---|---|
| Purpose | Getting started and funded | Long-term growth and flexibility |
| Focus | What and how | Why and where |
| Timeframe | 1-3 years | 3-5 years or more |
| Flexibility | Less flexible | Changes as needed |
Why You Need Both
- Start Strong and Stay Focused: Your business plan helps you get started, while your strategic plan keeps you on track with your big goals and long-term vision.
- Adapt to Change: The world of business changes quickly. Your strategic plan helps you adjust when needed.
- Measure and Refine: The business plan gets you going, and the strategic plan helps you see if you’re on the right path and adjust when necessary.
- Communicate Effectively: Together, both plans help everyone—your team, investors, and customers—understand where your business is going
Is Your Business Plan Aligned With Your Strategic Plan?
If your business plan and strategic plan don’t match, it can cause confusion. Here are three ways to make sure they work together:
- Review and Update Regularly: Check your business plan every few months to see if it still matches your big goals.
- Integrate Feedback: Update your business plan with insights from your strategic plan.
- Engage Your Team: Make sure your team knows both plans and how they can help achieve your goals.
The Bottom Line
A business plan sets the stage, but a strategic plan makes sure you stay on the right track. Together, they provide what your business needs to grow and succeed.
Ask yourself: Is my business plan in line with my strategic plan? If not, it’s time to fix that. Aligning your actions with your big picture goals will help your business thrive.
Need help? Let’s talk about how to make sure both plans work for you!
