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Limit this entire section to two or absolute maximum of three pages by focusing on major and long-term issues. Use succinct, affirmative statements and make every noun, adjective and verb important. After the summary section, this is probably the most important element in the entire plan as it sets the direction, tone and framework for the detail that follows. If the proposed strategies and their rationale are flawed then the whole direction of the business may be wrong. To compile this section, considerable research needs to have been completed particularly on markets, competition and sales potential. See 6. Profiles of Target Markets. For further guidance, see the white papers on Devising Venture Strategies and Developing a Business Strategy. Also, have a look at the free Online Strategic Planner, which could be used to help draft this entire section as illustrated by the Sample Strategic Plan.
Note: Free-Plan, a comprehensive 150-page Business Plan Guide and Template based on this business plan guide, can
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3.1. VisionDescribe what your business will look like in, say, five years time. Indicate its likely size and the nature, breadth and depth of its operations etc. For example, start your vision with the following:
For further guidance, see the white paper on Developing a Business Strategy. Also, have a look at the free Online Strategic Planner that could be used to help draft this entire section as illustrated by the Sample Strategic Plan. 3.2. MissionIn one succinct paragraph, describe the central purposes and activities ("mission") of your business. Explain concisely what the business is about - along the lines of a so-called "elevator pitch". For example:
3.3. ValuesDescribe the business's values and the ethical standards it will apply in dealings with stakeholders, customers, suppliers etc. A sentence or two should suffice for most businesses. If your organization is NFP (not-for-profit), you may wish to expand on its values using bullet points. 3.4. ObjectivesBriefly, explain the promoters' (or shareholders', management's) underlying long-term objectives in setting up (or expanding) the business. For example:
For further guidance, see the white paper on Developing a Business Strategy. 3.5. SWOTsSWOTs ( Strengths, Weaknesses, Opportunities and Threats) are mentioned here to highlight the importance of addressing them in the 3.6. Strategies subsection that follows. What are the business’s real SWOTs? Be very honest about identifying any major strengths, weaknesses and threats and justify opportunities based on market analysis and research rather than on wishful thinking or supposition.
It may not be appropriate to tabulate SWOTs within the final version of your plan in view of the fact that your proposed strategies presented in 3.6 Strategies below are designed to resolve shortcomings identified in this table. One solution would be to add a closing subsection to this main section to serve as a wrap-up statement (or an overall assessment) that describes how the proposed strategies/plans will:
- resolve its internal weaknesses (name the areas) - fully exploit its external opportunities (identify them) and - avoid major external threats (explain how). Alternatively, an item along these lines could be included as part of the overall 14. Conclusion towards the back of the plan. For further guidance, see the white papers on Devising Venture Strategies and Developing a Business Strategy. 3.6. StrategiesUse bullets to highlight up to eight (or so) key strategies (actions, programs, projects, operating methods etc.) in relation to major functional areas - markets, sales, products/services, technology, finance, management, operations etc. Be sure you are presenting realistic, medium-term strategies and not merely short-term tactics. The following table highlights differences between strategic and tactical issues when planning a holiday:
Clearly, it would not make much sense when planning a holiday to address the tactical issues without first having resolved the strategic matters. This also applies to strategic planning for a business plan. Your strategies are critically important, as they become the road map for all the (tactical) detail presented in the balance of the plan. In essence, set out the basic strategies in this subsection and then use the remainder of your plan to flesh out the detail. Use 3.5. SWOTs above to prompt thinking on internal and external issues as indicated in the table below and explain how your plan will deal with them in strategic terms.
Here are some possible strategies for a newly formed handbag designer/producer/distributor:
For further guidance, see the white papers on Devising Venture Strategies and Developing a Business Strategy. 3.7. Goals/TargetsSummarize the prime goals/targets - for sales, profits, employment, market shares etc. – to be achieved within the life of your plan i.e. three to five years. For example, the handbag firm might have the following third-year targets:
For further guidance, see the white paper on Developing a Business Strategy. Also, have a look at the free Online Strategic Planner that could be used to help draft this entire section as illustrated by the Sample Strategic Plan. Additional HelpFor further guidance, review the white papers on Devising Business Strategies and Developing a Strategic Business Plan. You can use the free Online Strategic Planner or view the Sample Strategic Plan.
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