As we approach another New Year, the festive period is an ideal time for business owners to spend a little of their down time thinking about their achievements from 2024 and look at their plans for 2025. Planning for the future is crucial for a small business, and, though Strategic Planning can seem daunting, it doesn’t have to be.

The Background…

A well-crafted strategic plan can act as a roadmap and guide any size business over the coming months, making it easier to achieve its long-term goals, and help you negotiate the challenges and opportunities that might occur along the way.

Strategic planning can help you:

• Clarify your business vision and objectives.

• Allocate resources more effectively.

• Identify and take advantage of new opportunities.

• Anticipate and avoid potential risks.

• Improve decision-making .

There are some common pitfalls around Strategic Planning though, so let’s break them down, look at how to avoid them and get the most out of your planning process.

1. Making the plan too complex

Many business owners fall into the trap of creating overly complicated strategic plans. This can lead to confusion and difficulty in implementation.

How to avoid it:

• Keep it simple. Focus on a few key goals that will make the biggest impact on your business.

• Use clear, straightforward language that everyone in your team can understand.

• Break down your goals into smaller, manageable tasks with deadlines to keep you focussed.

2. Ignoring current problems

It’s easy to get caught up in future planning and overlook issues that are affecting your business right now. Many could simply be amplified as you grow if you don’t solve them first!

How to avoid it:

• Take stock of your current challenges before planning for the future.

• Ask your team to identify bottlenecks or problems in their daily work.

• Address these issues as part of your strategic plan.

3. Focussing too much on Budget

While financial planning is important, and we’d usually encourage business owners to focus more on their Budget, your strategic plan should be about more than just allocating funds.

How to avoid it:

• Think beyond the numbers. Consider your business goals, market position, and growth opportunities.

• Use your budget as a tool to support your strategy, not as the strategy itself.

• Set goals that aren’t just financial, such as improving customer satisfaction or developing new products.

4. Lack of Accountability

Without clear responsibility for tasks, even the best plans can fall apart.

How to avoid it:

• Assign specific tasks to team members.

• Set clear deadlines for each task.

• Regularly check in on progress and offer support where needed.

• Lead by example and take responsibility for your own tasks.

5. Relying too much on spreadsheets

While spreadsheets are useful, they can become cumbersome and outdated quickly.

How to avoid it:

• Consider using simple project management tools designed for small businesses.

• Look for software that allows real-time updates and easy sharing among team members. Many are App-based so can be updated in the move.

• Choose tools that integrate with your other business systems if possible.

6. Not involving the right people

Planning in isolation can lead to unrealistic goals or missed opportunities, while involving others can increase the quality of the information you’re working on and the eventual buy-in from others.

How to avoid it:

• Involve key team members in the planning process.

• Consider input from frontline staff who interact with customers daily.

• If possible, get feedback from trusted advisors or mentors outside your business.

7. Being too rigid

The business world changes quickly, and your plan needs to be flexible enough to adapt.

How to avoid it:

• Review your plan regularly – quarterly is often a good interval for small businesses.

• Be prepared to adjust your goals if circumstances change.

• Celebrate small wins along the way to keep motivation high.

Conclusion…

Strategic planning doesn’t have to be overwhelming or intimidating. By avoiding the pitfalls above, you can create a plan that’s realistic, achievable, and drives your business forward. The goal is to have a roadmap that guides your decisions and helps your business grow, rather than anything fancy or complicated.

If you’re feeling unsure about your strategic planning, and would like to discuss the process, the outcomes or any other aspects of your business, please get in touch. We’ve worked with numerous businesses of all sizes over many years to help them devise, implement and refine their plans, and would love to help you too!

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