Business Strategy vs Business Planning

Posted by brandstad in Oct, 2015

WHAT IS A STRATEGIC BUSINESS PLAN VS A BUSINESS PLAN

When we suggest to our clients that they need a strategic business plan often we receive blank looks then ‘oh you mean a business plan?’ Then the question; ‘what is the difference between a strategic business plan and a business plan?’ This post will hopefully answer that question and if you need more specific in-depth information please contact us.

A business plan focuses on the “who” and “what” of your business. It looks at the aims and objectives.

The strategic plan gives us the “how” and “when.” It is an action plan for your business with deadlines and timelines

Many people in business know and understand what a business plan is and see the value of having one. If you are a start up business or you are seeking external finance.  It is a key component of the business loan process and serves as a foundation for your organization.

But what about a strategic business plan? Not many people know or understand what a strategic plan is and simply assume that having a business plan is enough to expand and grow their business.

What is a Business Plan?

A business plan provides a written direction/route a company intends to take to maintain and grow its income from its’ business’ operations. This plan identifies the business’ models being used, its’ vision, missions and objectives.

What does a business plan contain?

It includes location, operational requirements, staffing, marketing plan, market research, promotional strategies and financing requirements that are needed to meet those objectives.  It also includes the competitive industry research and the competitive advantages of the business. The business plan should provide a strong case for the business’ potential for success. A good business plan should highlight any weaknesses or gaps and how the business owner plans to plug the gaps & overcome the weaknesses.

How often should the business plan be updated and reviewed?

A good business plan is a working document which usually projects three to five years into the future.

Your business plan should be reviewed regularly (quarterly or every six months) by top management to benchmark and to ensure the business is still on course. At least annually an in depth review/ analysis should be done to assess whether the Business Plan needs to change or the business activities need to change based on the current environment.

Uses of a business plan

A good business plan has several purposes some of which are;

• raising capital,
• expansion,
• reengineering of resources and activities,
• downsizing, and/or preparation for sell-out.

What is a Strategic Business Plan

The strategic plan is a focused action plan that identifies the steps and strategies that a business will use to meet and potentially exceed, its specific objectives. A business can have more than one strategic plan to address various issues in the business.

A good strategic business plan can be for the entire business in general or just focus on specific areas of the business you want to strengthen, such as export, customer retention, new product or service introduction.

What does a Strategic Business Plan contain?

As mentioned above a strategic business plan has a more specific focus and so some examples of strategic plans are below.

• A strategic management plan addresses how to strengthen the operational aspects of a business to achieve the business objectives as laid out in the Business Plan. The primary focus is on the management team and its personnel. It will include the development of manuals and documents for procedures, policies, skills requirements, IT technology requirements, etc.  The objective of the Strategic Management plan is to maintain or improve productivity, maximize internal control of resources, and enhance relationships (internally and/or externally).
• A strategic marketing/customer plan main objective is to improve customer retention and increase the customer base or/and volume of sales per customer. The primary focus would be to raise awareness of the business products/services and engage with more potential customers. It will include various methods of marketing and sales techniques, skills requirements, IT technology requirements, etc.

Other strategic plans would be;

• Strategic Finance plan
• Strategic IT Plan

Please contact us today for more information on how you can develop and document a strategy to grow your business.