by Lorraine Ball
A strategic plan is like a GPS for your business. Without it, you’re driving aimlessly, hoping to reach your destination. With it, you have clear directions, a way to measure progress, and the flexibility to navigate unexpected detours. Here’s why every small business owner needs one:
It Keeps You Focused – Running a business can feel like juggling flaming torches while riding a unicycle—there’s always something demanding your attention. A strategic plan helps you focus on what truly matters, cutting through distractions so you can make progress toward your goals.
It’s a Map for Your Resources – Time, money, and energy are precious commodities in a small business. A plan ensures you’re spending them where they’ll have the biggest impact, avoiding the dreaded “throwing spaghetti at the wall” approach.
It Helps You Stay on Track – With a plan, you can measure your progress. Are you hitting your milestones? If not, what needs to change? It’s like checking your map along the way to make sure you haven’t missed a turn.
It Prepares You for the Unexpected – Markets shift, competitors pop up, and surprises happen. A strategic plan gives you a framework to adapt without losing sight of your long-term goals. Think of it as your business’s safety net.
It Rallies Your Team – A clear plan helps your team understand the “why” behind what they’re doing. It fosters a sense of purpose and makes everyone feel like they’re rowing in the same direction.
It Simplifies Decisions – Should you launch a new product? Hire more staff? A strategic plan serves as a decision-making guide, helping you evaluate whether a choice aligns with your goals. It’s like having a cheat sheet for tough calls.
So what’s in your strategic plan? – Your plan should outline four simple elements:
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Your objective sets your vision.
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Your goals make it measurable.
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Your strategy points you in the right direction.
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Your tactics are the actionable steps you’ll take.
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Objectives
Objectives are the big-picture achievements you’re working toward. They answer the question: What do you want? Maybe it’s growing your business, expanding into a new market, or improving customer satisfaction. Think of objectives as your destination on the map.
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Goals
Goals are where things get measurable. They define how much you want to accomplish. For instance, if your objective is to grow your business, your goal might be increasing revenue by 20% this year or landing 50 new clients.
Here’s where a lot of business owners get stuck: objectives and goals sound similar, but they’re not the same. The objective is the what; the goal is the how much. You need both to chart a clear path forward.
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Strategies
Strategies outline your general approach for reaching those goals. They answer the question: How will you get there? If your objective is to increase brand awareness, your strategy might focus on boosting your social media presence or building partnerships with local businesses.
Strategies set the general direction, like deciding to drive east if you’re heading to Illinois. At this point, you’re not worrying about which highway to take—you’re just making sure you’re on the right track.
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Tactics
Tactics are the specific actions that bring your strategy to life. If your strategy is the general direction, tactics are the highways—like choosing I-70 or I-74 to get to Illinois.
In business terms, tactics might include scheduling a month of social media posts, running a local ad campaign, or hosting a customer appreciation event.
A common hang-up I see is mixing up strategy and tactics. Strategy is the plan; tactics are the steps. And just like on a road trip, there’s usually more than one way to get where you’re going.
When all these pieces work together, it’s easier to make decisions, track progress, and pivot when the unexpected happens. Whether you’re a solo entrepreneur or running a small team, a simple plan helps you move from winging it to working with purpose.
