Strategic Planning is Really making a Big Difference for three Home Businesses
Written by Erica Olsen
business management
Start of the Year is the Best Time to Chart the Right Course for Your Business
You have two choices when it comes to running your home business in 2007: Be intentional about the path your business follows. Or run your business on autopilot.
Turning on autopilot is kind of like hopping in your Hummer, turning on the satellite navigation system, and following its exact directions from your home to, say, Las Vegas. As you may have experienced, computers aren’t the best at making decisions. You’ll get to Las Vegas eventually, but it may take twice as long. In fact, you might not even get there. You could just as easily end up in Las Vegas, New Mexico, instead of Las Vegas, Nevada.
Many people deliberately plan their personal lives, but when it comes to business, for some reason, we don’t take the same approach. If you’re running your home business without a plan of some sort, you’re just using the auto-navigation system. To be intentional, you need to map out your path and then you’ll be a lot more likely to get to your destination. This may seem overly simplified, but it’s really straightforward.. The fact is 90% of us are running our businesses without a plan. 90% of us are hoping our OnStar system will gets us there. But why not join the elite 10% that have a strategic plan and are reaping the benefits? The beginning of the year is the best time to turn off the auto-pilot and be intentional about the direction of your business. Let’s get started. Clearing Up the Confusion about Strategic Planning Many people are confused by the terms strategy, strategic plan, and strategic planning. Well, I am here to help you get a clear picture. For the moment, forget what you’ve heard about this subject. I promise that strategic planning makes a huge difference to your organization both tangibly and intangibly, so keep reading! What is strategy? Strategy and being strategic is about consciously choosing to be clear about your company’s direction in relation to what’s happening in the dynamic environment. With this knowledge you’re in a much better position to respond proactively to the changing environment. What is a strategic plan? Simply put, a strategic plan is the formalized roadmap that describes how your company executes the chosen strategy. A plan spells out where an organization is going over the next year or more, and how it’s going to get there. Typically, the plan is organization-wide or focused on a major function such as a division, department, or other major function. A strategic plan is a management tool that serves the purpose of helping an organization do a better job, and it improves organizations because a plan focuses the energy, resources, and time of everyone in the organization in the same direction.
Specifically, a strategic plan: · Is for established businesses and business owners who are serious about growth · Helps build your competitive advantage · Keeps you focused on the right opportunities · Prioritizes your financial needs · Provides focus and direction to move from plan to action
Erica Olsen () is a principal of M3 Planning, making strategy a reality for growth-oriented organizations. Her company runs MyStrategicPlan, an online strategic planning software for business owners, executive directors, and department managers. Specifically designed for small organizations with less than 50 employees, MyStrategicPlan is a cost-effective, do-it-yourself solution for anyone who wants to develop and execute their business strategy. Her company also offers strategic planning consulting, facilitation, articles, and assessment tools. She is also the author of the new book Strategic Planning For Dummies.
Previously published in the February 2007 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($15.00 for 1 year, six issues). Visit www.homebusinessmag.com
