The first in our two-part series about Strategic Planning for Small Businesses, this article deals with the fundamentals: what strategic planning actually is and why we (as small business owners) should embrace it.

Strategic planning is for big companies, right?

Well… no. No it really isn’t.

Strategic planning is, at its most basic, simply a process to set objectives and priorities; to consider where we want the business to go and how we might get there. It gives owners (and employees or other stakeholders) high-level direction. It helps focus resources and energy, as well as define and improve processes.

These things are important for businesses of all sizes; all business owners need to know where we’re headed, and how we’re going to get there most successfully.

Crucially, it’s not just about the good stuff – growth, transformation, profit – it’s  also about what else we may find across our path along the way. Recognising, mitigating and managing potential risks – business and personal – is something every single business owner must do. A fact we should all be hyper-aware of at this moment in 2020.

However, even with all these business-critical factors, things that are overtly called “strategy” are often shied away from in smaller companies.

It’s not that the information doesn’t exist – most small businesses owners hold the “strategic” information in their heads. But either (a) it all feels too hard (b) we don’t see the value in setting it out in a structured way, (c) we actually don’t know how to formalise it or (d) we simply feel we don’t have the time for this.

Others actually haven’t thought about objective-setting, strategy or planning. They’re busy. Working hard, getting on with it, growing (if they’re lucky!) and that’s that.

So how to make that change? How do small business owners engage themselves in that process of strategic planning?

On the business, in the business

One of the light-bulb moments we have with clients is the need to work ON the business. Not IN the business. It’s not a new concept but it can be a challenging cultural and professional shift for many.

A lot of small business owners are used to being doers within their own company. It’s hard to step into something that feels theoretical, when “real” work needs to be done.

And for many it is very much outside our comfort zone: small business owners mostly start their companies because they’re good at something specific, and/ or are passionate about something specific. That doesn’t mean we’re necessarily good at business strategy, or running and growing a business – these are things we all need to learn on the job!

To be clear, we’re not suggesting business owners stop being hands-on. But the investment of 5-10% of an owner’s time on reviewing, thinking and planning – yes, strategising! – yields a lot of value in terms of the well-being of a small business and its future success.

Ask yourself: how much of your working time every week or month do YOU spend working on your business, rather than in it?

NEXT WEEK… Three actionable steps to make it a reality in your small business