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10 Key Elements of a Strategic Plan
The strategic planning process explores essential questions about the purpose of being in business. To help you succeed, we have put together the key components of a Strategic Plan.
10 Key Elements of a Strategic Plan
- 1. 10 Key Elements ofa Strategic Plan
- 2. Your Strategic Planis a critical document in determining the success of your business. It is a guide to help achieve your business goals and objectives. It also serves as a tool for problem solving, market planning and product development.
- 3. The strategic planningprocess explores essential questions about the purpose of being in business. To help you succeed, we have put together the key components of a Strategic Plan.
- 4. NEED HELP WITHYOUR STRATEGIC PLAN ?
- 5. Executive Summary Your ExecutiveSummary should sum up your entire strategic plan and includes: 1. An overview of what your company does and why it will be successful 2. A brief synopsis of all the other sections of the plan 3. MUST answer why you business is unique
- 6. Elevator Pitch An elevatorpitch is a brief description of your business. A quality elevator pitch gives a concise and consistent explanation of your business. It provides a precise understanding of what your business is and its key objectives.
- 7. Mission Statement A missionstatement explains what your business is trying to achieve. The critical thing is to figure out the one thing you are trying to do better than anyone else. Key decisions should be made with regards to how well they help the company progress in achieving its mission.
- 8. SWOT Successful entrepreneurs judgenew ideas by determining their feasibility and market potential. They conduct either formal or informal SWOT analyses, looking at the idea in the context of the company’s strengths and weaknesses, and in the context of market opportunities and threats.
- 9. Setting and achievingSMART goals is the hallmark of successful companies: • Specific: your goals need to be very specific vs. being being vague • Measurable: You should be able to measure whether you are meeting the goals or not to measure whether you achieved your goal or not). • Achievable and Realistic: making sure the objectives are achievable and realistic within the allotted time period • Time-Bound: making sure you set a date by which the objectives will be achieved. Goals
- 10. Key Performance Indicators KPIs arethe metrics that judge your business’ performance based on the success you would like to succeed. They include a series of numbers that judge the financial health and the performance of your business AND to keep you focused towards achieving your goals.
- 11. Target Customers Successful businessessolve the problems of their customers. You need to identify: • Target Customers • Customer Needs • Your solution • Competitive Advantage
- 12. Industry Analysis Your industry(or market) analysis: • Confirms that there is a market need for your products and/or services • Confirms that there is a substantial market size (so you can successfully grow) • Confirms that industry trends support your company’s strategy • Helps you identify new opportunities for success
- 13. Competitive Analysis Conducting yourcompetitive analysis: • Defines your competition • Describes your competition and their strengths & weaknesses • Determines your current competitive advantages • Identifies new opportunities for competitive advantage
- 14. Marketing Plan Your MarketingPlan demonstrates how your company will penetrate the market and generate revenues, through a detailed discussion of your: • Products and/or Services • Promotions and Branding • Place/Distribution Methods • Customer Value Maximization • Marketing Partnerships & Joint Ventures
- 15. Management Team TheTeam sectionofyourstrategicplan ensuresthat you have thehuman resourcesto executeon theopportunities you’veidentified. Include yourbiography and biographies ofother team members, ideally showingwhy yourteam is uniquely qualified to succeed.
- 16. Your Operations Planwill help you transform your goals and opportunities into reality. It will include the following: • Identifying the projects to be completed • Breaking up the project into smaller pieces • Identifying key details of how the projects will be completed • Plotting the projects on a Gantt chart Operations Plan
- 17. Discuss key resultsfrom your P&L model, answering the following questions: • Which products/services added the most to total revenue? Gross margins? • What are the key marketing expenses? • How will your HR costs rise over time? • How will your G&A expenses rise, and what line items most impact G&A costs? • What will your gross profit percentages be and how will they change over the next five years? Financial Plan
- 18. BusinessPlanTemplate.com helps entrepreneurs, businessowners and executives create plans to grow their organizations. Learn more about our strategic plan template at www.businessplantemplate.com
Editor's Notes
- #14 There are several specific steps we can take to maximize the benefits of our diverse workforce. First, learn the names of your co-workers and others with whom you conduct business. Use them frequently when you work together to give a personal touch that shows you recognize everyone’s individuality. When time permits, show interest in your co-workers beyond the job at hand. Ask them about their cultural celebrations or traditions. Never assume stereotypes about specific groups of people. You wouldn’t appreciate co-workers assuming something about you. When you’re in meetings, use discussion guidelines to keep on topic and avoid potentially exclusive behavior that keeps minorities out of the discussion. And, avoid personal comments of a derogatory nature. Supervisors need to deal with any personal attacks they witness or have reported to them immediately. Take advantage of the variety of experience among your co-workers. Respect differences—any differences. Look at co-workers’ abilities, not their disabilities. Never go along with insensitive comments. Speak up. Finally, think inclusive—never exclusive.