Yes, it is true. Many entrepreneurs, including those identified as home-based businesses, don’t have a business plan, let alone, a working strategic plan. There is a long list of reasons why owners don’t implement plans for their business. They include excuses such as, “It is overwhelming” and “I don’t know where to start.” They got hung up on the stress of the unknown, and they never get out of their comfort zone to develop one.
A strategic plan should not be an overwhelming task. It is simply a guide to make good decisions regarding the future of the company. It is typically developed by the business leader and reassessed often. Entrepreneurs and small business owners, like you, need a plan for your future, regardless whether your office is located on the 30th floor in the corner suite or it is a tiny space in your bedroom, declared as your office.
If you plan to be successful, developing a strategic plan is a must. The sooner you put one in place, the sooner you can reap the rewards from it.
Here are a few examples of what you will gain from implementing a strategic plan for your business.
1. Building Confidence
When you don’t have a roadmap to dream, create, and profit; it is difficult to be optimistic about your future.
A strong leader’s confidence develops from a defined vision. Picturing yourself in the future is the best way to do this. Decipher what will feel like, look like, smell like, etc. Then, capture the detailed image on paper or electronically.
Use this image as your destination point and begin to build a roadmap to your blueprinted target. Just, focus on the first couple of steps toward your dream. You do not need to map out the entire journey. The next couple of moves will be enough to begin to build your confidence because you will know, you are headed in the right direction.
2. Creating Accountability
When you are the leader, it is challenging to hold yourself accountable for poor decision-making or failing to make one at all. Strategic objectives or goals act as your guide to make better decisions. They will encourage you to move forward, if for no other reason than, to meet the goals you established for yourself. As the leader of your company, it will be tougher when you have a written plan, to say to yourself, “I will make the needed decision to complete this task next week.” The commitment you have made in writing to yourself will create a stronger aversion response when you leave the task unfinished. Thus, you will be more motivated to find a way to finish it.
3. Reducing Your Desire to Chase the Wrong Opportunity
Chasing poorly vetted opportunities distracts you from your true goals. They do not create an efficient journey to success. Time is an important asset you must protect. When you have a clear roadmap established for your business, you will be able to determine if something is worth your time, effort, and money by evaluating what you are already planning to do and comparing it with new opportunities that arise.
4. Developing Clarity
The planning process will help you determine where it is you will spend your time and efforts. It will allow you to identify good options for success and implement the vision you developed. It will highlight the incongruities in what you say is your mission and brand, versus what you are doing to share your brand and bring your mission to life.
The clearer you can be about your future; the clearer customers will be about who you are and how you can help them.
5. Encourages Growth
A plan to achieve long-term goals encourages you to strive for them. A good business strategy pushes you to elevate your business by scaling it, adding more value, or increasing the scope of your business.
This can be tougher for the home-based business owner who walks five feet to work and often shows up in jeans or sweatpants. It does not mean the traditional method of planning for business growth should be forgotten. Rather, planning for growth will push you to set aside time and effort to ensure a quality path for growth exists and happens.
6. Supports Funding Opportunities
Many small businesses and entrepreneurs grossly underestimate the time it will take to build their business and as a result, they will run out of money. If you assume your profit forecasts will fall short, you can plan to ask for money by having a good business plan and a defined strategic plan in place.
7. Establish Benchmarks
If your business is going to reach the level of success you desire, it must establish standards and expectations. These benchmarks will serve as a marker to measure your progress toward your business goals. All businesses should have a few key performance indicators, they will use across their business, such as identifying a number of new customers, costs to acquire a new customer, and your visitor to lead ratio. These indicators can be tracked to assess the health of your business and the progress you are making or not making toward your goals.
You should carefully select the right key performance indicators for your business and use them.
8. Defines Priorities
By thoughtfully determining your business strategy before distractions and as new opportunities arise, you give yourself more power in the decision-making process and increase your leadership capabilities. This proactive approach will save you time, energy, money, and stress. It will always be difficult to determine what should be your highest priority as a business owner, but this process will make those determinations easier.
9. Depicts Your Ideal Client
The strategic planning process will require you to develop details about your outlook and understand your clients better. A good plan will include an alignment with your customer’s experience processes and procedures and your capture clients’ predicted response to any shifts in the company’s products or branding.
10. Comprehend Your Industry
A business strategy would not be effective if it didn’t include an assessment, from time to time, framing how you created a business class of your own in the industry. When you can find your unique place, and keep tabs on the shifts and trends with your competition, you can continue to strive for more.
Businesses who don’t take the time to understand their positioning will find themselves losing out on profitable opportunities and unable to understand how to clearly differentiate themselves from the competition.
Get Out of Your Comfort Zone
If you don’t have a strategic plan established, now is your time to establish one. Good leaders and successful business owners do. There are many tools and organizations who can help you dial down any overwhelming feelings you may have and guide you to develop a powerful plan for your business.
When you can be more proactive and future-focused, you will find your business is easier to run and you can capitalize on your talents. If you are putting in all this time and energy it takes to run a home-based business, then, you deserve to have a business you can lead and get to the success you desire.
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