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How to Write a Business Plan, Step by Step

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What is a business plan?

1. write an executive summary, 2. describe your company, 3. state your business goals, 4. describe your products and services, 5. do your market research, 6. outline your marketing and sales plan, 7. perform a business financial analysis, 8. make financial projections, 9. summarize how your company operates, 10. add any additional information to an appendix, business plan tips and resources.

A business plan outlines your business’s financial goals and explains how you’ll achieve them over the next three to five years. Here’s a step-by-step guide to writing a business plan that will offer a strong, detailed road map for your business.

ZenBusiness

A business plan is a document that explains what your business does, how it makes money and who its customers are. Internally, writing a business plan should help you clarify your vision and organize your operations. Externally, you can share it with potential lenders and investors to show them you’re on the right track.

Business plans are living documents; it’s OK for them to change over time. Startups may update their business plans often as they figure out who their customers are and what products and services fit them best. Mature companies might only revisit their business plan every few years. Regardless of your business’s age, brush up this document before you apply for a business loan .

» Need help writing? Learn about the best business plan software .

This is your elevator pitch. It should include a mission statement, a brief description of the products or services your business offers and a broad summary of your financial growth plans.

Though the executive summary is the first thing your investors will read, it can be easier to write it last. That way, you can highlight information you’ve identified while writing other sections that go into more detail.

» MORE: How to write an executive summary in 6 steps

Next up is your company description. This should contain basic information like:

Your business’s registered name.

Address of your business location .

Names of key people in the business. Make sure to highlight unique skills or technical expertise among members of your team.

Your company description should also define your business structure — such as a sole proprietorship, partnership or corporation — and include the percent ownership that each owner has and the extent of each owner’s involvement in the company.

Lastly, write a little about the history of your company and the nature of your business now. This prepares the reader to learn about your goals in the next section.

» MORE: How to write a company overview for a business plan

The third part of a business plan is an objective statement. This section spells out what you’d like to accomplish, both in the near term and over the coming years.

If you’re looking for a business loan or outside investment, you can use this section to explain how the financing will help your business grow and how you plan to achieve those growth targets. The key is to provide a clear explanation of the opportunity your business presents to the lender.

For example, if your business is launching a second product line, you might explain how the loan will help your company launch that new product and how much you think sales will increase over the next three years as a result.

» MORE: How to write a successful business plan for a loan

In this section, go into detail about the products or services you offer or plan to offer.

You should include the following:

An explanation of how your product or service works.

The pricing model for your product or service.

The typical customers you serve.

Your supply chain and order fulfillment strategy.

You can also discuss current or pending trademarks and patents associated with your product or service.

Lenders and investors will want to know what sets your product apart from your competition. In your market analysis section , explain who your competitors are. Discuss what they do well, and point out what you can do better. If you’re serving a different or underserved market, explain that.

Here, you can address how you plan to persuade customers to buy your products or services, or how you will develop customer loyalty that will lead to repeat business.

Include details about your sales and distribution strategies, including the costs involved in selling each product .

» MORE: R e a d our complete guide to small business marketing

If you’re a startup, you may not have much information on your business financials yet. However, if you’re an existing business, you’ll want to include income or profit-and-loss statements, a balance sheet that lists your assets and debts, and a cash flow statement that shows how cash comes into and goes out of the company.

Accounting software may be able to generate these reports for you. It may also help you calculate metrics such as:

Net profit margin: the percentage of revenue you keep as net income.

Current ratio: the measurement of your liquidity and ability to repay debts.

Accounts receivable turnover ratio: a measurement of how frequently you collect on receivables per year.

This is a great place to include charts and graphs that make it easy for those reading your plan to understand the financial health of your business.

This is a critical part of your business plan if you’re seeking financing or investors. It outlines how your business will generate enough profit to repay the loan or how you will earn a decent return for investors.

Here, you’ll provide your business’s monthly or quarterly sales, expenses and profit estimates over at least a three-year period — with the future numbers assuming you’ve obtained a new loan.

Accuracy is key, so carefully analyze your past financial statements before giving projections. Your goals may be aggressive, but they should also be realistic.

NerdWallet’s picks for setting up your business finances:

The best business checking accounts .

The best business credit cards .

The best accounting software .

Before the end of your business plan, summarize how your business is structured and outline each team’s responsibilities. This will help your readers understand who performs each of the functions you’ve described above — making and selling your products or services — and how much each of those functions cost.

If any of your employees have exceptional skills, you may want to include their resumes to help explain the competitive advantage they give you.

Finally, attach any supporting information or additional materials that you couldn’t fit in elsewhere. That might include:

Licenses and permits.

Equipment leases.

Bank statements.

Details of your personal and business credit history, if you’re seeking financing.

If the appendix is long, you may want to consider adding a table of contents at the beginning of this section.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are some tips to write a detailed, convincing business plan:

Avoid over-optimism: If you’re applying for a business bank loan or professional investment, someone will be reading your business plan closely. Providing unreasonable sales estimates can hurt your chances of approval.

Proofread: Spelling, punctuation and grammatical errors can jump off the page and turn off lenders and prospective investors. If writing and editing aren't your strong suit, you may want to hire a professional business plan writer, copy editor or proofreader.

Use free resources: SCORE is a nonprofit association that offers a large network of volunteer business mentors and experts who can help you write or edit your business plan. The U.S. Small Business Administration’s Small Business Development Centers , which provide free business consulting and help with business plan development, can also be a resource.

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The Importance of Market Research

Creating a business plan, legal requirements, exploring funding options, crafting a marketing strategy, managing and growing your business, how do i start a small business for beginners, how do i create a business plan, what are six ways to grow and scale a business, the bottom line.

• Small Business
• How to Start a Business

Starting a Small Business: Your Complete How-to Guide

From market research to managing growth

The U.S. is home to 33.2 million small businesses, which drive over 43% of GDP.   If you are looking to start a business, there are key factors to consider—from market research and creating a business plan to scaling your business. These factors are critical to your journey and can make a big difference no matter what stage of the process you are in.

Entrepreneurs who take concrete action can differentiate themselves from competitors, innovate, and grow. For successful entrepreneurs, the execution of the business is often what means the most. 

Key Takeaways

• Starting a small business involves extensive market research of your target audience, competitors, and gaining a deep understanding of the industry.
• It is important to build a comprehensive business plan that includes the product or service description, your target customers, financial projections, and all other key details.
• Understanding the legal requirements of starting your business involves knowledge of business registration, permits, licensing, and other regulatory requirements.
• There are various types of funding channels for starting a business, including financing it yourself, securing external funding from your network, and applying for government and corporate grants and loans. 

Being clear about your business goals involves doing your research. Successful entrepreneurs often do extensive research on their field. This includes understanding their prospective customers, the technical aspects of the industry, and the challenges other businesses are facing. 

Understanding how other players operate in an industry is important. Attending conferences, joining associations, and building a network of people involved in the field can help you learn how decisions are made. Often, comprehensive market research takes six months to a year. 

Understanding Your Target Audience

Knowing your target market is critical for many reasons. These are the customers who are most likely to purchase your product, recommend it to friends, and become repeat buyers. Apart from driving your bottom line, having a strong understanding of your target audience will allow you to tailor your offering more effectively, reach your customers more efficiently, and manage customer expectations.

Compiling demographic data on age, family, wealth, and other factors can give you a clearer understanding of market demand for your product and your potential market size.

It’s important to ask, “Why would someone buy this and part with their discretionary income?” or “Will someone love this enough to tell someone about it?” At the heart of these questions is understanding whether your business solves a key problem, as well as whether it delivers the “more” that connects to your audiences’ human emotions.

Assessing Market Trends and Opportunities

To find an advantage in a given market, look at key market trends in customer behavior and the business landscape. Explore the state of business conditions and consumer spending, along with the economic environment and how interest rates may affect financing and business growth.

Several resources are available to dive into market trends across industries, such as Statistics of U.S. Businesses and the U.S. Census Business Builder . To analyze the competitive landscape, and in turn, identify key opportunities, Porter's 5 Forces is a classic model to help businesses build their competitive strategy.

A business plan is a road map for achieving your business goals. It outlines the capital that you need, the personnel to make it happen, and the description of your product and prospective customers.

There are a number of models for creating a business plan. The Small Business Administration (SBA) , for instance, provides a format that includes the following nine sections:

• Executive summary: This should be a description of your company and its potential for success. The executive summary can cover your mission statement, employees, location, and growth plan.
• Company description: This is where you detail what your business offers, its competitive advantages, and your strengths as a business.
• Market analysis: Lay out how your company is positioned to perform well in your industry. Describe market trends and themes and your knowledge of successful competitors.
• Organization and management: Who is running your company, and how is your business structured? Include an organizational chart of your management team. Discuss if your business will be incorporated as a business C or S corporation, a limited partnership, a limited liability company, or a sole proprietorship. 
• Service or product line: Here is where you describe how your business will solve a problem and why this will benefit customers. Describe how your product lifecycle would unfold.
• Marketing and sales: Detail your marketing strategy and how this will reach your customers and drive return on investment. 
• Funding request: If you're looking for financing, lay out the capital you’re requesting under a five-year horizon and where, in detail, it will be allocated, such as salaries, materials, or equipment. 
• Financial projections: This section shows the five-year financial outlook for your company and ties these to your request for capital.

Having a coherent business plan is important for businesses looking to raise cash and crystallize their business goals.

Setting Goals and Strategies

Another key aspect of a business plan is setting realistic goals and having a strategy to make these a reality. Having a clear direction will help you stay on track within specified deadlines. In many ways, it allows companies to create a strategic plan that defines measurable actions and is coupled with an honest assessment of the business, taking into account its resources and competitive environment. Strategy is a top-down look at your business to achieve these targets.

Financial Projections and Budgeting

Often, entrepreneurs underestimate the amount of funding needed to start a business. Outlining financial projections shows how money will be generated, where it will come from, and whether it can sustain growth. 

This provides the basis for budgeting the costs to run a business and get it off the ground. Budgeting covers the expenses and income generated from the business, which include salaries and marketing expenses and projected revenue from sales.

Another important aspect of starting a business are the legal requirements that enable you to operate under the law. The legal structure of a business will impact your taxes, your liability, and how you operate.

Businesses may consider the following structures in which to operate:

• Corporation
• Limited Liability Company (LLC)
• Partnership
• Sole Proprietorship

Each has different legal consequences, from regulatory burdens to tax advantages to liability being shifted to the business instead of the business owner.

Registering Your Business

Now that you have your business structure outlined, the next step is registering your business . Your location is the second key factor in how you’ll register your business. In many cases, small businesses can register their business name with local and state government authorities. 

If your business is being conducted under your legal name, registration is not required. However, such a business structure may not benefit from liability protection, along with certain legal and tax advantages. Often, registering your businesses costs $300 or less.

Before filing, a business structured as a corporation, LLC, or partnership requires a registered agent in its state. These agents handle the legal documents and official papers on your behalf.

Businesses that are looking to trademark their product, brand, or business, can file with the United States Patent and Trademark Office.

Understanding Permits and Licenses

If your business conducts certain activities that are regulated by a federal agency, you’re required to get a permit or license. A list of regulated activities can be found on the SBA website, and includes activities such as agriculture, alcoholic beverages, and transportation.

There are many different ways to fund a business. One of the key mistakes entrepreneurs make is not having enough capital to get their business running . The good news is that there are several channels to help make this happen, given the vital role entrepreneurs play in creating jobs and boosting productivity in the wider economy.

Self-Funding vs. External Funding

Bootstrapping, the term commonly used to describe self-funding your business, is where companies tap into their own cash or network of family and friends for investment. While the advantage of self-funding is having greater control, the downside is that it often involves more personal risk.

External funding involves funding from bank loans, crowdfunding, or venture capital , among other sources. These may provide additional buffers and enable you to capture growth opportunities. The drawback is less freedom and more stringent requirements for paying back these funds.

Grant and Loan Opportunities

Today, there are thousands of grants designed especially for small businesses from the government, corporations, and other organizations. The U.S. Chamber of Commerce provides a weekly update of grants and loans available to small businesses. 

For instance, Business Warrior offers loans between $5,000 and $50,000 to small business owners. As another example, Go. Be. Elevate Fund offers $4,000 to grant recipients who are women and/or people of color business owners to help them grow their businesses.

When it comes to marketing, there is a classic quote from Milan Kundera: “Business has only two functions—marketing and innovation." In order to reach customers, a business needs a marketing strategy that attracts and retains customers and expands its customer base.

To gain an edge, small businesses can utilize social media, email marketing, and other digital channels to connect and engage with customers.

Branding Your Business

Building a successful brand goes hand in hand with building a great experience for the customer. This involves meeting the expectations of your customer. What is your brand offering? Is it convenience, luxury, or rapid access to a product? Consider how your brand meets a customer's immediate need or the type of emotional response it elicits. Customer interaction, and in turn loyalty to your brand, is influenced, for example, by how your brand may align with their values, how it shifts their perception, or if it resolves customer frustration.

Digital Marketing and Social Media

We live in a digital-first world, and utilizing social media channels can help your business reach a wider audience and connect and engage in real time. Given that a strong brand is at the heart of successful companies, it often goes without saying that cultivating a digital presence is a necessity in order to reach your customers. 

According to HubSpot’s 2023 report, The State of Consumer Trends, 41% of the 600-plus consumers surveyed discovered new products on social media and 17% bought a product there in the past three months.

Managing a business has its challenges. Finding the right personnel to run operations, manage the day-to-day, and reach your business objectives takes time. Sometimes, businesses may look to hire experts in their field who can bring in specialized knowledge to help their business grow, such as data analysts, marketing specialists, or others with niche knowledge relevant to their field.

Hiring and Training Staff

Finding the right employees involves preparing job descriptions, posting on relevant job boards such as LinkedIn, and effectively screening applicants. Careful screening may involve a supplemental test, reviewing a candidate's portfolio, and asking situational and behavioral questions in the interview. These tools will help you evaluate applicants and improve the odds that you'll find the people you are looking for.

Once you have hired a new employee, training is the next essential step. On average, it takes about 62 hours to train new employees. Effectively training employees often leads to higher retention. While on-the-job training is useful, consider having an onboarding plan in place to make the transition clear while outlining expectations for the job.

Scaling Your Business

Growing your business also requires strategy. According to Gino Chirio, executive vice president at the consultancy group Maddock Douglas, there are six ways that companies can grow their business to drive real growth and expansion:

• New processes: Boost margins by cutting costs.
• New experiences: Connect with customers in powerful ways to help increase retention.
• New features: Provide advancements to your existing product or service.
• New customers: Expand into new markets, or find markets where your product addresses a different need.
• New offerings: Offer a new product.
• New models: Utilize new business models, such as subscription-based services, fee-for-service, or advertising-based models.

With these six ways to grow a business, it is important to consider the risk, investment, and time involved. Improving your margins through new processes is often the most straightforward way to grow. Offering new features is also effective since it is tailored to your existing market with products you have already delivered.

By contrast, offering new products may involve higher risk since these have not been tested in the market. However, they may offer higher reward, especially if you have a first-mover advantage and release your product in the market before the competition.

A good place to start building a business is to understand the following core steps that are involved in an entrepreneur's journey : market research, creating a business plan, knowing the legal requirements, researching funding options, developing a marketing strategy, and business management.

A business plan is made up of a number of primary components that help outline your business goals and company operations in a clear, coherent way. It includes an executive summary, company description, market analysis, organization and management description, service or product line description, marketing and sales plan, funding requests (optional), and financial projections.

Business growth can fall into the following six categories, with each having varying degrees of risk and investment: new processes, new experiences, new features, new customers, new offerings, and new models.

Knowing how to start a small business involves the key steps of market research, setting up a business plan, understanding the legal requirements, exploring funding options, crafting a marketing strategy, and managing your business. 

For aspiring small business owners, these steps can help you successfully deliver your product or service to the market, and ultimately grow. While it can take a considerable amount of work, the payoffs are manifold: independence of work, personal fulfillment, financial reward, and following your passion.

U.S. Chamber of Commerce. " The State of Small Business Now ."

U.S. Small Business Administration. " Market Research and Competitive Analysis ."

U.S. Small Business Administration." Write Your Business Plan ."

U.S. Small Business Administration. " Choose a Business Structure ."

U.S. Small Business Administration. " Register Your Business ."

U.S. Small Business Administration. " Apply for Licenses and Permits ."

U.S. Small Business Administration. " Fund Your Business ."

U.S. Chamber of Commerce. " 52 Grants, Loans and Programs to Benefit Your Small Business ."

Ogilvy. " Behind Every Brand Is a Great Experience, and Vice Versa—Why Today's Customer Expects Synergy ."

HubSpot. " The State of Consumer Trends in 2023 ."

Training Magazine. " 2022 Training Industry Report ."

Harvard Business Review. " The Six Ways to Grow a Company ."

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How to Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
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• Business strategy |
• What is strategic planning? A 5-step gu ...

What is strategic planning? A 5-step guide

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. In this article, we'll guide you through the strategic planning process, including why it's important, the benefits and best practices, and five steps to get you from beginning to end.

Strategic planning is a process through which business leaders map out their vision for their organization’s growth and how they’re going to get there. The strategic planning process informs your organization’s decisions, growth, and goals.

Strategic planning helps you clearly define your company’s long-term objectives—and maps how your short-term goals and work will help you achieve them. This, in turn, gives you a clear sense of where your organization is going and allows you to ensure your teams are working on projects that make the most impact. Think of it this way—if your goals and objectives are your destination on a map, your strategic plan is your navigation system.

In this article, we walk you through the 5-step strategic planning process and show you how to get started developing your own strategic plan.

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What is strategic planning?

Strategic planning is a business process that helps you define and share the direction your company will take in the next three to five years. During the strategic planning process, stakeholders review and define the organization’s mission and goals, conduct competitive assessments, and identify company goals and objectives. The product of the planning cycle is a strategic plan, which is shared throughout the company.

What is a strategic plan?

A strategic plan is the end result of the strategic planning process. At its most basic, it’s a tool used to define your organization’s goals and what actions you’ll take to achieve them.

Typically, your strategic plan should include: 

Your company’s mission statement

Your organizational goals, including your long-term goals and short-term, yearly objectives

Any plan of action, tactics, or approaches you plan to take to meet those goals

What are the benefits of strategic planning?

Strategic planning can help with goal setting and decision-making by allowing you to map out how your company will move toward your organization’s vision and mission statements in the next three to five years. Let’s circle back to our map metaphor. If you think of your company trajectory as a line on a map, a strategic plan can help you better quantify how you’ll get from point A (where you are now) to point B (where you want to be in a few years).

When you create and share a clear strategic plan with your team, you can:

Build a strong organizational culture by clearly defining and aligning on your organization’s mission, vision, and goals.

Align everyone around a shared purpose and ensure all departments and teams are working toward a common objective.

Proactively set objectives to help you get where you want to go and achieve desired outcomes.

Promote a long-term vision for your company rather than focusing primarily on short-term gains.

Ensure resources are allocated around the most high-impact priorities.

Define long-term goals and set shorter-term goals to support them.

Assess your current situation and identify any opportunities—or threats—allowing your organization to mitigate potential risks.

Create a proactive business culture that enables your organization to respond more swiftly to emerging market changes and opportunities.

What are the 5 steps in strategic planning?

The strategic planning process involves a structured methodology that guides the organization from vision to implementation. The strategic planning process starts with assembling a small, dedicated team of key strategic planners—typically five to 10 members—who will form the strategic planning, or management, committee. This team is responsible for gathering crucial information, guiding the development of the plan, and overseeing strategy execution.

Once you’ve established your management committee, you can get to work on the planning process. 

Step 1: Assess your current business strategy and business environment

Before you can define where you’re going, you first need to define where you are. Understanding the external environment, including market trends and competitive landscape, is crucial in the initial assessment phase of strategic planning.

To do this, your management committee should collect a variety of information from additional stakeholders, like employees and customers. In particular, plan to gather:

Relevant industry and market data to inform any market opportunities, as well as any potential upcoming threats in the near future.

Customer insights to understand what your customers want from your company—like product improvements or additional services.

Employee feedback that needs to be addressed—whether about the product, business practices, or the day-to-day company culture.

Consider different types of strategic planning tools and analytical techniques to gather this information, such as:

A balanced scorecard to help you evaluate four major elements of a business: learning and growth, business processes, customer satisfaction, and financial performance.

A SWOT analysis to help you assess both current and future potential for the business (you’ll return to this analysis periodically during the strategic planning process). 

To fill out each letter in the SWOT acronym, your management committee will answer a series of questions:

What does your organization currently do well?

What separates you from your competitors?

What are your most valuable internal resources?

What tangible assets do you have?

What is your biggest strength? 

Weaknesses:

What does your organization do poorly?

What do you currently lack (whether that’s a product, resource, or process)?

What do your competitors do better than you?

What, if any, limitations are holding your organization back?

What processes or products need improvement? 

Opportunities:

What opportunities does your organization have?

How can you leverage your unique company strengths?

Are there any trends that you can take advantage of?

How can you capitalize on marketing or press opportunities?

Is there an emerging need for your product or service? 

What emerging competitors should you keep an eye on?

Are there any weaknesses that expose your organization to risk?

Have you or could you experience negative press that could reduce market share?

Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your company’s goals and objectives

To begin strategy development, take into account your current position, which is where you are now. Then, draw inspiration from your vision, mission, and current position to identify and define your goals—these are your final destination. 

To develop your strategy, you’re essentially pulling out your compass and asking, “Where are we going next?” “What’s the ideal future state of this company?” This can help you figure out which path you need to take to get there.

During this phase of the planning process, take inspiration from important company documents, such as:

Your mission statement, to understand how you can continue moving towards your organization’s core purpose.

Your vision statement, to clarify how your strategic plan fits into your long-term vision.

Your company values, to guide you towards what matters most towards your company.

Your competitive advantages, to understand what unique benefit you offer to the market.

Your long-term goals, to track where you want to be in five or 10 years.

Your financial forecast and projection, to understand where you expect your financials to be in the next three years, what your expected cash flow is, and what new opportunities you will likely be able to invest in.

Step 3: Develop your strategic plan and determine performance metrics

Now that you understand where you are and where you want to go, it’s time to put pen to paper. Take your current business position and strategy into account, as well as your organization’s goals and objectives, and build out a strategic plan for the next three to five years. Keep in mind that even though you’re creating a long-term plan, parts of your plan should be created or revisited as the quarters and years go on.

As you build your strategic plan, you should define:

Company priorities for the next three to five years, based on your SWOT analysis and strategy.

Yearly objectives for the first year. You don’t need to define your objectives for every year of the strategic plan. As the years go on, create new yearly objectives that connect back to your overall strategic goals . 

Related key results and KPIs. Some of these should be set by the management committee, and some should be set by specific teams that are closer to the work. Make sure your key results and KPIs are measurable and actionable. These KPIs will help you track progress and ensure you’re moving in the right direction.

Budget for the next year or few years. This should be based on your financial forecast as well as your direction. Do you need to spend aggressively to develop your product? Build your team? Make a dent with marketing? Clarify your most important initiatives and how you’ll budget for those.

A high-level project roadmap . A project roadmap is a tool in project management that helps you visualize the timeline of a complex initiative, but you can also create a very high-level project roadmap for your strategic plan. Outline what you expect to be working on in certain quarters or years to make the plan more actionable and understandable.

Step 4: Implement and share your plan

Now it’s time to put your plan into action. Strategy implementation involves clear communication across your entire organization to make sure everyone knows their responsibilities and how to measure the plan’s success. 

Make sure your team (especially senior leadership) has access to the strategic plan, so they can understand how their work contributes to company priorities and the overall strategy map. We recommend sharing your plan in the same tool you use to manage and track work, so you can more easily connect high-level objectives to daily work. If you don’t already, consider using a work management platform .  

A few tips to make sure your plan will be executed without a hitch: 

Communicate clearly to your entire organization throughout the implementation process, to ensure all team members understand the strategic plan and how to implement it effectively. 

Define what “success” looks like by mapping your strategic plan to key performance indicators.

Ensure that the actions outlined in the strategic plan are integrated into the daily operations of the organization, so that every team member's daily activities are aligned with the broader strategic objectives.

Utilize tools and software—like a work management platform—that can aid in implementing and tracking the progress of your plan.

Regularly monitor and share the progress of the strategic plan with the entire organization, to keep everyone informed and reinforce the importance of the plan.

Establish regular check-ins to monitor the progress of your strategic plan and make adjustments as needed. 

Step 5: Revise and restructure as needed

Once you’ve created and implemented your new strategic framework, the final step of the planning process is to monitor and manage your plan.

Remember, your strategic plan isn’t set in stone. You’ll need to revisit and update the plan if your company changes directions or makes new investments. As new market opportunities and threats come up, you’ll likely want to tweak your strategic plan. Make sure to review your plan regularly—meaning quarterly and annually—to ensure it’s still aligned with your organization’s vision and goals.

Keep in mind that your plan won’t last forever, even if you do update it frequently. A successful strategic plan evolves with your company’s long-term goals. When you’ve achieved most of your strategic goals, or if your strategy has evolved significantly since you first made your plan, it might be time to create a new one.

Build a smarter strategic plan with a work management platform

To turn your company strategy into a plan—and ultimately, impact—make sure you’re proactively connecting company objectives to daily work. When you can clarify this connection, you’re giving your team members the context they need to get their best work done. 

A work management platform plays a pivotal role in this process. It acts as a central hub for your strategic plan, ensuring that every task and project is directly tied to your broader company goals. This alignment is crucial for visibility and coordination, allowing team members to see how their individual efforts contribute to the company’s success. 

By leveraging such a platform, you not only streamline workflow and enhance team productivity but also align every action with your strategic objectives—allowing teams to drive greater impact and helping your company move toward goals more effectively. 

Strategic planning FAQs

Still have questions about strategic planning? We have answers.

Why do I need a strategic plan?

A strategic plan is one of many tools you can use to plan and hit your goals. It helps map out strategic objectives and growth metrics that will help your company be successful.

When should I create a strategic plan?

You should aim to create a strategic plan every three to five years, depending on your organization’s growth speed.

Since the point of a strategic plan is to map out your long-term goals and how you’ll get there, you should create a strategic plan when you’ve met most or all of them. You should also create a strategic plan any time you’re going to make a large pivot in your organization’s mission or enter new markets. 

What is a strategic planning template?

A strategic planning template is a tool organizations can use to map out their strategic plan and track progress. Typically, a strategic planning template houses all the components needed to build out a strategic plan, including your company’s vision and mission statements, information from any competitive analyses or SWOT assessments, and relevant KPIs.

What’s the difference between a strategic plan vs. business plan?

A business plan can help you document your strategy as you’re getting started so every team member is on the same page about your core business priorities and goals. This tool can help you document and share your strategy with key investors or stakeholders as you get your business up and running.

You should create a business plan when you’re: 

Just starting your business

Significantly restructuring your business

If your business is already established, you should create a strategic plan instead of a business plan. Even if you’re working at a relatively young company, your strategic plan can build on your business plan to help you move in the right direction. During the strategic planning process, you’ll draw from a lot of the fundamental business elements you built early on to establish your strategy for the next three to five years.

What’s the difference between a strategic plan vs. mission and vision statements?

Your strategic plan, mission statement, and vision statements are all closely connected. In fact, during the strategic planning process, you will take inspiration from your mission and vision statements in order to build out your strategic plan.

Simply put: 

A mission statement summarizes your company’s purpose.

A vision statement broadly explains how you’ll reach your company’s purpose.

A strategic plan pulls in inspiration from your mission and vision statements and outlines what actions you’re going to take to move in the right direction. 

For example, if your company produces pet safety equipment, here’s how your mission statement, vision statement, and strategic plan might shake out:

Mission statement: “To ensure the safety of the world’s animals.” 

Vision statement: “To create pet safety and tracking products that are effortless to use.” 

Your strategic plan would outline the steps you’re going to take in the next few years to bring your company closer to your mission and vision. For example, you develop a new pet tracking smart collar or improve the microchipping experience for pet owners. 

What’s the difference between a strategic plan vs. company objectives?

Company objectives are broad goals. You should set these on a yearly or quarterly basis (if your organization moves quickly). These objectives give your team a clear sense of what you intend to accomplish for a set period of time. 

Your strategic plan is more forward-thinking than your company goals, and it should cover more than one year of work. Think of it this way: your company objectives will move the needle towards your overall strategy—but your strategic plan should be bigger than company objectives because it spans multiple years.

What’s the difference between a strategic plan vs. a business case?

A business case is a document to help you pitch a significant investment or initiative for your company. When you create a business case, you’re outlining why this investment is a good idea, and how this large-scale project will positively impact the business. 

You might end up building business cases for things on your strategic plan’s roadmap—but your strategic plan should be bigger than that. This tool should encompass multiple years of your roadmap, across your entire company—not just one initiative.

What’s the difference between a strategic plan vs. a project plan?

A strategic plan is a company-wide, multi-year plan of what you want to accomplish in the next three to five years and how you plan to accomplish that. A project plan, on the other hand, outlines how you’re going to accomplish a specific project. This project could be one of many initiatives that contribute to a specific company objective which, in turn, is one of many objectives that contribute to your strategic plan. 

What’s the difference between strategic management vs. strategic planning?

A strategic plan is a tool to define where your organization wants to go and what actions you need to take to achieve those goals. Strategic planning is the process of creating a plan in order to hit your strategic objectives.

Strategic management includes the strategic planning process, but also goes beyond it. In addition to planning how you will achieve your big-picture goals, strategic management also helps you organize your resources and figure out the best action plans for success. 

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• Strategic planning for small business: A guide to success

by Waymaker | Jun 6, 2023

Understanding the Importance of Strategic Planning

Defining strategic planning, benefits of strategic planning for small businesses, common challenges in small business strategic planning, assessing your small business’s current situation, conducting a swot analysis, evaluating your business’s financial health, identifying your target market and competitors, setting clear goals and objectives, creating smart goals, aligning goals with your business’s mission and vision, prioritizing goals for maximum impact, developing a comprehensive strategy, choosing the right business model, crafting a unique value proposition, establishing key performance indicators (kpis).

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Small business owners often find themselves with their hands full – managing operations, employees, finances, and customer relationships, just to name a few. With so much on their plates, it can be easy to overlook the importance of strategic planning. However, failing to think ahead can leave a business with no clear direction, making it difficult to achieve growth and success. This article will explore the benefits of strategic planning and guide small business owners through the process of developing a solid strategy.

At its core, strategic planning is about charting a course for the future of your business. It involves setting goals, analyzing your current situation, and identifying opportunities and threats that lie ahead. By taking the time to develop a st rategic plan , you can ensure that your efforts are aligned with your long-term objectives and that you are making the most efficient use of your resources.

Strategic planning is a process that involves the following steps:

• Assessing your current situation
• Setting clear goals and objectives
• Developing a comprehensive strategy

Assessing your current situation involves taking a hard look at your business and the larger market. You’ll want to analyze your strengths and weaknesses, as well as any opportunities or threats that may be on the horizon. This will help you to identify areas where you can improve and opportunities that you can take advantage of.

Setting clear goals and objectives is essential for any strategic plan. You’ll want to define what you want to achieve and when you want to achieve it. This will help you to stay focused and motivated as you work towards your long-term goals.

Developing a comprehensive strategy involves outlining the specific actions that you’ll take to achieve your goals. This may involve developing new products or services, expanding into new markets, or improving your existing operations.

Why is strategic planning so important for small businesses? There are several key benefits:

• Improved decision-making: A strategic plan provides a framework for making decisions that align with your long-term goals. This can help you to avoid short-term thinking and make decisions that will benefit your business in the long run.
• Increased efficiency: By identifying your priorities and allocating your resources accordingly, you can make the most efficient use of your time and money. This can help you to achieve your goals more quickly and with less waste.
• Better communication: A well-crafted strategic plan can help you to communicate your vision and goals to employees, investors, and other stakeholders. This can help to build buy-in and support for your business.
• Greater adaptability: As your business environment changes, a strategic plan can help you to pivot and adjust your approach accordingly. This can help you to stay ahead of the curve and remain competitive.

While the benefits of strategic planning are clear, many small business owners struggle to develop and implement a solid strategy. Some of the most common challenges include:

• Time constraints: Small business owners have a lot on their plates, and finding the time to plan for the future can be difficult. However, investing time in strategic planning can ultimately save you time in the long run by helping you to avoid costly mistakes and inefficiencies.
• Lack of expertise: Developing a strategic plan requires a deep understanding of your business and the larger market, which many small business owners may lack. Consider seeking out outside expertise or partnering with a consultant to help you develop a solid plan.
• Resistance to change: Sometimes, it can be difficult to convince employees or partners to embrace a new strategy or way of doing things. Communication and transparency are key here – be sure to explain the reasoning behind your strategy and involve others in the planning process as much as possible.

Despite these challenges, it’s important for small business owners to remember that strategic planning is a critical component of long-term success. With the right tools and mindset, any business can develop a clear and effective strategy.

Before you can start developing your strategic plan, it’s important to take a step back and assess your current situation. This involves conducting a comprehensive analysis of your business’s strengths, weaknesses, opportunities, and threats (SWOT analysis), as well as evaluating your financial health and understanding your target market and competitors.

Assessing your small business’s current situation is crucial to ensure that you have a clear understanding of where your business stands in the market. By conducting a SWOT analysis, you can identify your business’s internal strengths and weaknesses, such as your unique selling proposition and areas where you may be falling behind your competitors. Additionally, you can identify external opportunities and threats, such as potential areas for growth or new competition.

A SWOT analysis is a useful tool for identifying your business’s internal strengths and weaknesses as well as external opportunities and threats. To conduct a SWOT analysis, consider the following questions:

• Strengths: What are your business’s unique strengths? What do you do better than your competitors?
• Weaknesses: What are your business’s current weaknesses? Are there areas where you are falling behind your competitors?
• Opportunities: What are some potential opportunities for growth or expansion in your industry?
• Threats: What are some external threats that could impact your business, such as changes in the regulatory environment or new competition?

By answering these questions, you can gain a better understanding of your business’s current situation and develop strategies to improve your strengths and address your weaknesses.

Fiscal responsibility is critical to the success of any small business. Before developing a strategic plan, it’s important to evaluate your business’s financial health. This includes analyzing your cash flow, profitability, and overall financial stability.

By evaluating your business’s financial health, you can identify areas where you may need to cut costs or increase revenue. This can help you make informed decisions about your business’s future and ensure that you have the resources you need to achieve your goals.

Understanding your target market and competitors is critical to developing a successful strategy. To do this, consider the following questions:

• Who are your target customers? What are their needs and preferences?
• What sets you apart from your competitors? What do they do well, and where are there opportunities for you to differentiate yourself?
• What are some potential barriers to entry or competition?

By identifying your target market and competitors, you can tailor your marketing and sales efforts to reach the right customers and stand out from your competitors. This can help you build a loyal customer base and increase your revenue over time.

Setting clear goals and objectives is an essential step in achieving success for any business. It is important to have a solid understanding of your current situation and then create specific, measurable, achievable, relevant, and time-bound (SMART) goals that align with your business’s mission and vision.

When you set SMART goals, you are creating a roadmap for your business that will help you stay focused and on track. These goals will provide you with a clear direction and a way to measure your progress towards success.

Creating SMART goals requires careful planning and consideration. To make sure your goals are effective, you should follow these guidelines:

• Specific:  Your goals should be clearly defined and specific. This means that you should avoid setting vague or general goals that are difficult to measure or achieve.
• Measurable:  Establish quantifiable targets or metrics to track progress toward your goals. This will help you to measure your progress and determine whether you are on track to achieving your goals.
• Achievable:  Your goals should be challenging but attainable. Setting goals that are too easy will not provide you with the motivation to achieve them, while setting goals that are too difficult will only lead to frustration and disappointment.
• Relevant:  Your goals should be aligned with your business’s mission and vision. This means that you should consider your business’s values and purpose when setting your goals.
• Time-bound:  Set a deadline or timeline for achieving each goal. This will help you to stay focused and motivated, and will also provide you with a sense of urgency to achieve your goals.

Aligning your goals with your business’s mission and vision is essential to ensure that you are working towards the right objectives. This involves understanding your business’s values and purpose and identifying key areas of focus.

By aligning your goals with your business’s mission and vision, you can ensure that you are working towards the right objectives and that you are making progress towards achieving your overall business goals.

Once you have identified your goals and objectives, it’s important to prioritize them based on their potential impact on your business. This involves considering the resources required to achieve each goal and the potential return on investment.

By prioritizing your goals, you can ensure that you are focusing your resources on the most important objectives and that you are making the most of your time and effort.

In conclusion, setting clear goals and objectives is an essential step in achieving success for any business. By creating SMART goals, aligning them with your business’s mission and vision, and prioritizing them for maximum impact, you can ensure that you are working towards the right objectives and making progress towards achieving your overall business goals.

With your goals and objectives established, it’s time to develop a comprehensive strategy for achieving them. This involves choosing the right business model, crafting a unique value proposition, and establishing key performance indicators (KPIs).

Your business model defines how your business creates, delivers, and captures value. To choose the right business model, think about your target market, your products or services, and your revenue streams.

Your value proposition is what sets you apart from your competitors and defines your business’s unique identity. To craft a strong value proposition, focus on your customers’ needs and preferences and identify what sets you apart from your competitors.

KPIs are a way to measure progress toward your goals and objectives. The specific KPIs you choose will depend on your business’s unique situation and goals. Some examples of KPIs include revenue, customer acquisition, customer retention, and employee satisfaction.

Strategic planning is a critical component of long-term success for small businesses. By taking the time to assess your current situation, set clear goals and objectives, and develop a comprehensive strategy, you can ensure that your business is headed in the right direction. While the process of strategic planning may seem daunting, the benefits are clear – improved decision-making, increased efficiency, better communication, and greater adaptability. With the right mindset and tools, any small business can chart a course for growth and success.

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Business tips

Do sweat the small stuff: Why planning the little things matters for your business

A pilot-turned-business-owner's view on small business planning.

When people talk about planning, it's often broken down into four types: strategic, operational, tactical, and contingency. I'm a business owner and a pilot, and all four types of planning are crucial for both of those roles. I'll get into that a little more, but first, I want to tell you a story.

The opposite of planning is complacency

One time, a fellow pilot and I planned a flight down to a local airport known for its food. The plan was for me to fly solo out of my home airport and pick them up on my way, at an airport closer to their house.

After my shift at the flight school that day, I completed my basic flight planning. This consists of weight and balance calculations and checking the weather and operational notices. I made the flight over to pick up my friend, and we headed to the destination. My buddy was a newer pilot, so I was mentoring a little during the flight. For example, I made a point of checking the weather before every departure. Don't get me wrong, you are absolutely supposed to do that regardless of your experience level, but...well, I'll tell the rest of the story.

We made the trip down and back (the food was as good as promised), and after a short delay dropping them off, I spun up the engine for the last time. The sun had just set on the Bluegrass, it was a lovely night, and I was looking forward to the quiet jump home.

In a combination of fatigue and complacency, I didn't consider checking the weather this time.

I should have. For starters, it's required. But beyond that, the sunset would have undoubtedly produced some change in the weather. And sure enough, that evening, the wind at altitude had picked up. 

The departure took me out over a cliff at the end of the runway, where the wind was now very turbulent. I'd been confident I had a good picture of the situation, so it caught me off completely off guard. Less than a minute after departing, the airplane was violently shaking and hard to control. 

My mind fell back to my training: aviate, navigate, communicate. I maintained control and track while communicating with the approach controller.

Was it a mechanical failure? What else could explain the rapid degradation in control authority?

As I was trying to work out what I could do to troubleshoot, it was over. Almost as fast as it started, I had flown out of the turbulence. I made some extra maneuvers performing flight control tests before making a normal approach. The response from the tower when I requested clearance to land: "November 123, cleared to land runway 22, be advised a CRJ-700 reported a 20-knot gain and loss on a 3-mile final."

I checked my airspeed and ground speed, finding a 35-knot discrepancy.

It all became clear: I didn't have any mechanical issues. My issue was, as the mechanics say, "located between the pilot's seat and the flight controls."

I got lucky. If I had checked the weather, I likely wouldn't even remember that flight now, years later. Some simple planning— very simple planning—would have put me in a much better position.

Small planning for small businesses

Any business owner can relate to this story. Not directly, of course, but think about all the times you've sat down with your accountant, a client, a vendor, or even a coworker. At least once, I bet, you missed something that was crystal clear in hindsight, right? We all do. That's why some amount of planning is vital, regardless of how minor a task is.

I now own my own web development and marketing consulting company. Not long ago, I sent a quote to a client that was an order of magnitude higher than I'd led the client to expect. I failed to do my planning on multiple levels before a client meeting and tried to just feel my way through it. 

I'm sure everyone knows how that story ends.

Business plans, financial plans, or the planning and consideration around buying large-ticket items might feel obvious. But something as simple as jumping into a quick meeting with a vendor should be afforded some planning as well. 

How big planning can help small planning

Let's take a look at the four kinds of planning I mentioned earlier, and how they can make your smaller-scale planning a lot simpler.

Strategic planning. Everything starts with strategic planning—looking years down the road. What's the big picture? You can think of this as planning for your planning, but you need to always revisit this level of planning as time passes and the environment changes. In the story of my flight, a strategic planning failure happened when I decided to make the trip after a long day at work and to conduct the last leg on my own. Had I made better strategic decisions, I probably would have ended up checking the weather.

Operational planning. In aviation, we have a standard operating procedure (SOP) for almost everything. It, like your operational planning, explains how to do something, not why . Businesses should also have SOPs. What are the actionable steps we need to take to get from here to there? 

Tactical planning. The rubber is on the road now. How are the operational plans going to be executed? Tactical planning always uses the most up-to-date information and is the most specific type of planning. In business, this is usually project-based planning based on the unique needs of a project. You might even make a tactical plan before heading into a meeting to ensure the meeting serves to advance your other, higher-level plans. (You've probably already identified my failure to check the weather, or perform any tactical planning at all, as the ultimate failure on the last leg of my day.)

Contingency planning. All these plans we've come up with are great, but does anything really go down the way we expected it to? No. And that's where contingency planning comes in. One of the most common contingency plans I make with every client is what we'll do if we miss deadlines or budget . They really appreciate this kind of forethought, and in the cases when it does come up, they can relax a bit. Happy customers! In the airline industry, we have whole books of contingency plans pre-engineered for any situation. We often carefully discussed, step-by-step, what each member of the team would do if and when the play went left. And that's exactly why I made it through the turbulence.

The most important part: OODA

It's one thing to plan. It's another thing to act in a way that makes those plans worth something. If we don't remain attentive and flexible, the plan we worked hard to make is useless.

Colonel John Boyd of the U.S. Air Force pioneered a decision-making loop called OODA : observe, orient, decide, act. We aren't working in a vacuum, and if we don't constantly re-evaluate, our planning goes to waste. Observe the environment, orient yourself to what you see, decide how to respond, and then act. Then observe the result of your actions—and keep going through the loop. 

Without planning, OODA won't do much good, but plans never go exactly the way you imagine, and OODA can help you adapt.

I hope you're as excited about planning as I am. 

If so, don't keep those plans in your head. Write them down. Talk about them with coaches and employees, clients and vendors. You never know when someone is going to have a better idea than you— it might even be the new guy . Planning for the big stuff makes the small stuff easier. And planning for the small stuff makes the tiny stuff run like clockwork. Don't get complacent, or you'll end up with those face-palmy mistakes. 

And, please, always check the weather.

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Hayden Young

After working as a pilot, consultant, and instructor, I found myself made redundant in 2020 at 23 years old. I decided to take the money in my 401k and start my own business. In my time off, I enjoy cooking, biking, photography, and a cold Ale-8-One.

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Small business strategic planning: 10 tips to transform your company

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Within our strategic planning practice we have worked with every conceivable type of business, large and small. Larger companies are more likely to engage in strategic planning, not because it is more relevant for them but because they tend to hire professional managers who understand the dramatic impact that a strategic plan can have on profitability and morale.

About half of Vistage members (I have worked with more than 50) engage in some type of strategic planning process, with varying degrees of formality. You may be wondering, why wouldn’t everybody want a plan?

One has to start by understanding the underlying psychology. We get caught in a trap, where the urgent nature of today’s work always takes precedence over strategy. We feel greater accomplishment from finishing routine tasks than attacking larger projects that deliver enterprise value but may require months to complete.

To be fair, small businesses are more strained for resources than larger companies. They do not have dedicated people for things such as research and development. But regardless of size, every entrepreneur should find time to be thoughtful about the future of their company.  I have a vivid memory of sitting with a really smart young entrepreneur who wept in her office out of fear she could lose it all. The pressure on small business owners is immense, and a thoughtful planning process can chart a course to a successful future, one with more clarity and less stress.

One thing I have found is that many entrepreneurs have a plan in their head, and they are under the impression that is good enough; it isn’t.  Lack of clarity manifests in poor decision making about new products, who to hire, where to staff a sales team and what equipment to buy. When these decisions are made in a vacuum and without sufficient data and context, a management team has to spend a lot of time unwinding mistakes. This is why the notion that we don’t have time to plan is really just a rationalization (one could even call it an excuse). The greater proportion of our time we spend planning (instead of reacting), the less time we expend.

Other small business owners will rationalize that they can’t plan because the world is a volatile place; and it is. But the businesses that plan what they can control, are in better position to react to the things that they can’t.

So here are 10 steps for small businesses to build a successful strategic planning process:

1. Include the right people

Often business owners are resistant to share information out of fear that it will end up in the wrong hands. So they keep a tight circle on who they have strategic conversations with. The problem with this is that the people closest to the customers are the ones with the most information about their problems, and potential solutions. In many companies, capable employees are unwilling to share their opinions. We encourage our clients to include as many people who they can trust (and who can think strategically) in their strategic planning process, and that tends to be a wider circle than they might expect.

2. Gather the data

Having access to pertinent market data is the number one barrier for most small businesses. Like investment bankers, we access industry reports on behalf of our clients but that is not practical for most businesses. However, there is a wealth of free information available at sources such as the Bureau of Labor Statistics, Bureau of Economic Analysis and low cost consumer research tools at sites such as gutcheckit.com.

Also, companies often do a poor job capturing and mining internal data. Every company should segment their reporting by channel, customer, product categories, etc. Surveying your strategy participants is also a useful way to gather information and rank strategic issues by importance.

If you are a really small company, these principles may be executed with five people but it is still the same.

3. Expect preparation

Strategic planning is garbage in, garbage out. Every person participating in strategic planning should be expected to prepare for a strategy conversation, whether that be by developing information or learning more about the mechanics of the business.

4. Create the right environment

Creating a safe harbor, a place where people feel safe about having strategy conversations is as important as making sure the physical environment (such as an off-site location) is suited to creativity. Many companies hire facilitators to keep the meeting on track.

5. Build your plan

Entrepreneurs have a lot of anxiety about writing a plan but it is actually the easy part if you have done your homework.  Components of a strategic plan usually include things like an executive summary, financial projections, SWOT analysis, external factors, market/competitive analysis, vision map and action plan.

6. Focus on growth and value

Often companies engage in operational planning and call it strategic planning. Continuing to do what you have always done is not strategy at all (unless you have weighed alternatives). Focus on how you will grow the business, and in particular what product or service innovations will improve the customer experience.

7. Organize around strategic objectives and an actionable plan

The number one thing that should come out of a strategic plan is unity about four or five overarching objectives that serve as a script for the management team. They should be illustrated in some form of vision map that can be shared with managers (and perhaps all employees) throughout the company.

I get to clean up after a lot of companies who hold strategy sessions and fail to put their strategy into action. Don’t even bother doing strategic planning if you don’t come out of it with an actionable plan with an assigned champion and due dates. When action items are organized by objectives, the objectives remain alive even after action items are completed.

The most successful companies I have been around are the ones with clear intention about converting their strategic plan into their corporate DNA. They do this by:

• Sharing their vision map with a broad group of people
• Building a corporate scorecard
• Tie their performance management (including incentive plans) back to the strategy
• Celebrate wins and engage their employees in the process.

9. Execute relentlessly

As Mike Tyson once said, “everyone has a plan until they get punched in the mouth.”

If you only take one thing from this post it should be this: MEET WITH YOUR TEAM EVERY MONTH OR QUARTER TO REVIEW THE STRATEGY AND ACTION PLAN, PERIOD.

10. Think of strategic planning as a process and not an event

Companies operate on all types of cycles. Whether you engage in strategic planning annually or quarterly, it must be a repeatable process (strategy, budget, scorecard, performance management, action plan). Rinse and repeat every year.

Great leaders inspire others with their vision. They don’t get caught in the trap of being operators every day without connection to the broader strategy. Reinforce your plan every day, until every employee understands it and buys in to your vision.

Read more about small business

Vistage for Small business leaders

Discover the most effective sounding board for your toughest decisions. As a small business owner, you may be so busy with urgent matters that you neglect the strategic decisions that drive long-term growth. Vistage helps you get out of the weeds, identify your blind spots and push your business forward. Get started here.

Category: Strategic Planning

Tags:   Business Strategy , National Small Business Week , small buisness

Marc Emmer is President of Optimize Inc., a management consulting firm specializing in strategic planning. Emmer is a sixteen-year Vistage member and a Vistage speaker. The release of his second book, “Momentum, Ho

Planning is essential for the success of any business. In business circles, strategic planning refers to a process in which an organization construes its strategies and makes decisions concerning the allocation of resources to plans set forth by the business. A strategic plan can break or make your enterprise; thus you must put in lots of effort in the development stage.

Anyways, read the below. This might help. http://www.namasteui.com/tips-for-creating-a-strategic-plan-for-your-business/

— Regards, Sourav Basak Namaste UI

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550+ Business Plan Examples to Launch Your Business

Need help writing your business plan? Explore over 550 industry-specific business plan examples for inspiration.

Find your business plan example

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View all sample business plans

Example business plan format

Before you start exploring our library of business plan examples, it's worth taking the time to understand the traditional business plan format . You'll find that the plans in this library and most investor-approved business plans will include the following sections:

Executive summary

The executive summary is an overview of your business and your plans. It comes first in your plan and is ideally only one to two pages. You should also plan to write this section last after you've written your full business plan.

Your executive summary should include a summary of the problem you are solving, a description of your product or service, an overview of your target market, a brief description of your team, a summary of your financials, and your funding requirements (if you are raising money).

Products & services

The products & services chapter of your business plan is where the real meat of your plan lives. It includes information about the problem that you're solving, your solution, and any traction that proves that it truly meets the need you identified.

This is your chance to explain why you're in business and that people care about what you offer. It needs to go beyond a simple product or service description and get to the heart of why your business works and benefits your customers.

Market analysis

Conducting a market analysis ensures that you fully understand the market that you're entering and who you'll be selling to. This section is where you will showcase all of the information about your potential customers. You'll cover your target market as well as information about the growth of your market and your industry. Focus on outlining why the market you're entering is viable and creating a realistic persona for your ideal customer base.

Competition

Part of defining your opportunity is determining what your competitive advantage may be. To do this effectively you need to get to know your competitors just as well as your target customers. Every business will have competition, if you don't then you're either in a very young industry or there's a good reason no one is pursuing this specific venture.

To succeed, you want to be sure you know who your competitors are, how they operate, necessary financial benchmarks, and how you're business will be positioned. Start by identifying who your competitors are or will be during your market research. Then leverage competitive analysis tools like the competitive matrix and positioning map to solidify where your business stands in relation to the competition.

Marketing & sales

The marketing and sales plan section of your business plan details how you plan to reach your target market segments. You'll address how you plan on selling to those target markets, what your pricing plan is, and what types of activities and partnerships you need to make your business a success.

The operations section covers the day-to-day workflows for your business to deliver your product or service. What's included here fully depends on the type of business. Typically you can expect to add details on your business location, sourcing and fulfillment, use of technology, and any partnerships or agreements that are in place.

Milestones & metrics

The milestones section is where you lay out strategic milestones to reach your business goals.

A good milestone clearly lays out the parameters of the task at hand and sets expectations for its execution. You'll want to include a description of the task, a proposed due date, who is responsible, and eventually a budget that's attached. You don't need extensive project planning in this section, just key milestones that you want to hit and when you plan to hit them.

You should also discuss key metrics, which are the numbers you will track to determine your success. Some common data points worth tracking include conversion rates, customer acquisition costs, profit, etc.

Company & team

Use this section to describe your current team and who you need to hire. If you intend to pursue funding, you'll need to highlight the relevant experience of your team members. Basically, this is where you prove that this is the right team to successfully start and grow the business. You will also need to provide a quick overview of your legal structure and history if you're already up and running.

Financial projections

Your financial plan should include a sales and revenue forecast, profit and loss statement, cash flow statement, and a balance sheet. You may not have established financials of any kind at this stage. Not to worry, rather than getting all of the details ironed out, focus on making projections and strategic forecasts for your business. You can always update your financial statements as you begin operations and start bringing in actual accounting data.

Now, if you intend to pitch to investors or submit a loan application, you'll also need a "use of funds" report in this section. This outlines how you intend to leverage any funding for your business and how much you're looking to acquire. Like the rest of your financials, this can always be updated later on.

The appendix isn't a required element of your business plan. However, it is a useful place to add any charts, tables, definitions, legal notes, or other critical information that supports your plan. These are often lengthier or out-of-place information that simply didn't work naturally into the structure of your plan. You'll notice that in these business plan examples, the appendix mainly includes extended financial statements.

Types of business plans explained

While all business plans cover similar categories, the style and function fully depend on how you intend to use your plan. To get the most out of your plan, it's best to find a format that suits your needs. Here are a few common business plan types worth considering.

Traditional business plan

The tried-and-true traditional business plan is a formal document meant to be used for external purposes. Typically this is the type of plan you'll need when applying for funding or pitching to investors. It can also be used when training or hiring employees, working with vendors, or in any other situation where the full details of your business must be understood by another individual.

Business model canvas

The business model canvas is a one-page template designed to demystify the business planning process. It removes the need for a traditional, copy-heavy business plan, in favor of a single-page outline that can help you and outside parties better explore your business idea.

The structure ditches a linear format in favor of a cell-based template. It encourages you to build connections between every element of your business. It's faster to write out and update, and much easier for you, your team, and anyone else to visualize your business operations.

One-page business plan

The true middle ground between the business model canvas and a traditional business plan is the one-page business plan . This format is a simplified version of the traditional plan that focuses on the core aspects of your business.

By starting with a one-page plan , you give yourself a minimal document to build from. You'll typically stick with bullet points and single sentences making it much easier to elaborate or expand sections into a longer-form business plan.

Growth planning

Growth planning is more than a specific type of business plan. It's a methodology. It takes the simplicity and styling of the one-page business plan and turns it into a process for you to continuously plan, forecast, review, and refine based on your performance.

It holds all of the benefits of the single-page plan, including the potential to complete it in as little as 27 minutes . However, it's even easier to convert into a more detailed plan thanks to how heavily it's tied to your financials. The overall goal of growth planning isn't to just produce documents that you use once and shelve. Instead, the growth planning process helps you build a healthier company that thrives in times of growth and remain stable through times of crisis.

It's faster, keeps your plan concise, and ensures that your plan is always up-to-date.

Download a free sample business plan template

Ready to start writing your own plan but aren't sure where to start? Download our free business plan template that's been updated for 2024.

This simple, modern, investor-approved business plan template is designed to make planning easy. It's a proven format that has helped over 1 million businesses write business plans for bank loans, funding pitches, business expansion, and even business sales. It includes additional instructions for how to write each section and is formatted to be SBA-lender approved. All you need to do is fill in the blanks.

How to use an example business plan to help you write your own

How do you know what elements need to be included in your business plan, especially if you've never written one before? Looking at examples can help you visualize what a full, traditional plan looks like, so you know what you're aiming for before you get started. Here's how to get the most out of a sample business plan.

Choose a business plan example from a similar type of company

You don't need to find an example business plan that's an exact fit for your business. Your business location, target market, and even your particular product or service may not match up exactly with the plans in our gallery. But, you don't need an exact match for it to be helpful. Instead, look for a plan that's related to the type of business you're starting.

For example, if you want to start a vegetarian restaurant, a plan for a steakhouse can be a great match. While the specifics of your actual startup will differ, the elements you'd want to include in your restaurant's business plan are likely to be very similar.

Use a business plan example as a guide

Every startup and small business is unique, so you'll want to avoid copying an example business plan word for word. It just won't be as helpful, since each business is unique. You want your plan to be a useful tool for starting a business —and getting funding if you need it.

One of the key benefits of writing a business plan is simply going through the process. When you sit down to write, you'll naturally think through important pieces, like your startup costs, your target market , and any market analysis or research you'll need to do to be successful.

You'll also look at where you stand among your competition (and everyone has competition), and lay out your goals and the milestones you'll need to meet. Looking at an example business plan's financials section can be helpful because you can see what should be included, but take them with a grain of salt. Don't assume that financial projections for a sample company will fit your own small business.

If you're looking for more resources to help you get started, our business planning guide is a good place to start. You can also download our free business plan template .

Think of business planning as a process, instead of a document

Think about business planning as something you do often , rather than a document you create once and never look at again. If you take the time to write a plan that really fits your own company, it will be a better, more useful tool to grow your business. It should also make it easier to share your vision and strategy so everyone on your team is on the same page.

Adjust your plan regularly to use it as a business management tool

Keep in mind that businesses that use their plan as a management tool to help run their business grow 30 percent faster than those businesses that don't. For that to be true for your company, you'll think of a part of your business planning process as tracking your actual results against your financial forecast on a regular basis.

If things are going well, your plan will help you think about how you can re-invest in your business. If you find that you're not meeting goals, you might need to adjust your budgets or your sales forecast. Either way, tracking your progress compared to your plan can help you adjust quickly when you identify challenges and opportunities—it's one of the most powerful things you can do to grow your business.

Prepare to pitch your business

If you're planning to pitch your business to investors or seek out any funding, you'll need a pitch deck to accompany your business plan. A pitch deck is designed to inform people about your business. You want your pitch deck to be short and easy to follow, so it's best to keep your presentation under 20 slides.

Your pitch deck and pitch presentation are likely some of the first things that an investor will see to learn more about your company. So, you need to be informative and pique their interest. Luckily, just like you can leverage an example business plan template to write your plan, we also have a gallery of over 50 pitch decks for you to reference.

With this gallery, you have the option to view specific industry pitches or get inspired by real-world pitch deck examples.

Ready to get started?

Now that you know how to use an example business plan to help you write a plan for your business, it's time to find the right one.

Use the search bar below to get started and find the right match for your business idea.

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70 Small Business Ideas for Anyone Who Wants to Run Their Own Business

Published: March 19, 2024

A good business idea may seem hard to come by, but with some planning and preparation, you can easily launch a small business to supplement your income — or become your own full-time boss.

Maybe you already have an idea of the business you’d like to start. But while you might feel ready for a new venture and passionate about your idea, you might be looking for some direction.

To help get you started, here's a list of small business ideas separated into a few sections:

• What makes a good small business?

Best Small Business Ideas

Best businesses to start with little money, home business ideas.

• Online Businesses Ideas

Easy Businesses to Start

Business ideas for students, creative small business ideas, how to start a small business at home, starting a small business: faq.

The first step to becoming a successful entrepreneur is finding a business idea that works for you. In this article, you’ll find dozens of small business ideas you can start from home and scale up as your clientele grows. Let’s get started.

What makes a good small business idea?

Not all small business ideas are made equal: Some require more effort and funding than others, while some can be launched with few resources — or resources you already have. As a potential small business owner, you’ll want to save as much money as possible on training, rent, supplies, and other necessities.

Let’s go over what makes a good business idea:

• Requires little to no training . A good small business idea will ideally leverage your existing field of expertise and require little to no training. That will not only shorten your time-to-launch, but also lessen your expenses, since training courses can cost a significant amount of money. Plus, you’ll be more confident offering services that you feel prepared to deliver.
• Requires low setup costs. Your business should be cheap to start. Maybe you only need to purchase a website domain or buy a desk for your garage.
• Requires little hands-on inventory or supply management . A great business idea needs few supplies and little inventory management. If you want to sell physical goods, you can either try drop-shipping and manually make goods in small batches.
• Is based online . The best small business ideas are based online and can be carried out from your personal computer. This will automatically lower your commuting costs and give you greater flexibility over your personal and work life.
• Can sustainably be managed by few people . As a small business owner, you won’t have the funds to hire other people to help you run your business — at least not at first. A good business idea should give you the ability to run your business on your own.

Free Business Startup kit

9 templates to help you brainstorm a business name, develop your business plan, and pitch your idea to investors.

• Business Name Brainstorming Workbook
• Business Plan Template
• Business Startup Cost Calculator

You're all set!

Click this link to access this resource at any time.

Airbnb Co-founder, Brian Chesky, said, “If we tried to think of a good idea, we wouldn’t have been able to think of a good idea. You just have to find the solution for a problem in your own life.”

If you’re like Brian and you’ve already thought about a solution for a problem you encounter in your life — or you’re on the path to doing so — then starting a small business may be in your future. It may also be for you if you dream of clocking out of your nine-to-five job for the last time and becoming your own boss.

Below, we include the best ideas for you to start your small business — with resources and examples to help you get started.

1. Handyman

8. Life/Career Coach

If you have experience navigating career, personal, and social transitions successfully, put it to good use as a life or career coach. Many of us are looking for guidance in our careers — and finding someone with the time to mentor us can be tough.

Life/career coaches don’t come cheap, but they are able to offer clients the intense and hands-on training and advice they need to make serious moves in their personal and professional lives. After all, everyone needs some uplifting advice from time to time.

To start your life/career coaching business with confidence, you can look for a certification program (like the Life Coach School’s or Diane Hudson’s ), then apply your skills as you acquire new clients.

A resume writing business is economical, has few overhead costs, and has few educational requirements. We still recommend having an Associate’s or Bachelor’s degree and a few resume samples on hand. If you still feel that you need to brush up on your resume writing skills, you can take a course like Coursera’s or LinkedIn Learning’s .

Once you’ve gotten resume writing down, you can expand your business to include cover letter writing and even offer career coaching services in conjunction with these services.

10. Freelance Writer

If you have writing skills , there’s someone out there willing to pay you for them. Write blog posts, magazine articles, and website copy galore — just make sure you have a body of work built up to share with potential clients. Even if you create a few sample pieces to have on hand, they’ll help exhibit your work and attract new business.

To become a freelance writer, it’s essential to choose a specialty. For instance, you might choose to only write for publications in the healthcare industry (maybe because you were previously a healthcare worker) or focus on lifestyle publications. Whatever the case, specializing will help you find your niche market and gain confidence as a new freelancer writer.

There are no educational requirements for freelance writing, but you do need strong writing skills. It also helps to enjoy writing. While certification may be beneficial, getting practice and writing every day is more important. Try these writing prompts to start.

11. Landscaper

Mowing, tree-trimming, and seasonal decor are all neighborhood needs. If you have or can acquire the equipment, a landscaping business can be a lucrative affair. It’s also a great choice if you enjoy doing it for your own home and have a good eye for landscape design.

The good news is that you can start small. For instance, you could offer your neighbors seasonal planting services and start with a few perennial plants, or simply offer mulching services.

To grow your landscaping business, you should consider taking some formal training. The following organizations offer courses:

• New York Botanical Gardens

After completing a course and getting enough experience, you can apply for a certificate from a landscaping organization. While a certificate isn’t necessary to work in the field, it can build your credentials and help you make industry connections to take your landscaping business to the next level. The Association of Professional Landscape Designers offers one potential certificate you could pursue.

Some states require licensure, especially if you’ll be using pesticides and fertilizers. Be sure to review the requirements for your state.

Learn some of the basics now with this video on landscape design from Lowe’s:

12. Videographer

Video production requires you to have invested in the equipment up front, which can be quite expensive. But that’s also what makes your services so valuable. Make sure you have a reel of your work to share or create a website with several selections of your work available for interested viewers.

There are no educational or licensure requirements for starting a video production business. As with writing and other creative arts, though, it pays to specialize. Real estate videos differ radically from wedding videos, and wedding videos differ radically from in-studio interviews and testimonials. By specializing, you target a highly specific customer who’ll benefit the most from your services, and you can also skill-up more effectively in one shooting style.

While you can find general classes on videography, you should consider taking a class in the type of videography you’d like to do. For instance, you could take The Complete Wedding Videography Course .

Hot tip: If you’re interested in specializing in video marketing, check out The Ultimate Guide to Video Marketing and download our starter pack below.

13. Photographer

Start by conducting photo shoots for your family and friends. As you build a body of work, ask for referrals and reviews. Photography businesses often grow by word of mouth, so create a Facebook page where you can tag recent clients. Photos where you tag those clients will show up in their friends’ newsfeeds, where they can view your work. You can also ask them to leave reviews on your Facebook business page.

Like with a video production small business, you’ll want to specialize. Will you do product shoots or portraits? How about wedding or fashion photo shoots? Once you specialize, you’ll be able to create a body of work that most accurately represents your strengths.

There are no educational or licensure requirements for starting a small photography business. Still, we recommend investing in a few photography courses, especially if you haven’t used your camera in a while. Some courses you might start with include:

• Cornell’s Digital Photography Certificate Program
• New York Institute of Photography’s Course

From there, seek courses that help you build skills in your chosen specialty.

If you’re not sure where to start with freelance photography, take a look at Erica Clayton’s journey into the business below. Her advice? Give yourself a firm deadline to turn a profit.

14. Bed and Breakfast Owner

15. Clothing Boutique Owner

If you dream of building your own fashion empire, why not start with a local boutique? Build buzz with impressive clothing styles, inspiring social media accounts, and heavy community involvement. While you can open a physical store, you can easily start online — and if that proves profitable, you can open up a local shop.

There are a few ways you can start a clothing boutique. First, you can make the clothes yourself if you already have experience in fashion design or know how to sew, knit, and curate colors and patterns.

Alternatively, you can design certain aspects of the clothing — such as a graphic or a logo — then send it to be printed on-demand at a local print shop when orders come in.

Lastly, you can dropship the items from a warehouse you’ve partnered with. This method is less reliable because there’s less quality assurance for each item, especially if you never visit the warehouses yourself. Regardless of your chosen method, starting a clothing boutique is highly doable, and you don’t need to have a fashion degree (though it certainly helps).

Take some inspiration from Sleep Ova , a luxury loungewear boutique based in Los Angeles, CA.

Some consulting industries are more competitive than others, so be sure to complete your research before starting a small consulting business. One way to find out how competitive a consulting niche is by doing keyword search . If your target niche is highly searched or is already dominated by big companies, you may have a harder time breaking in. You can use keyword research tools to uncover keyword volume and local demand.

12. Event Planner

An event planning business is an excellent choice if you have great organizational and interpersonal skills, and it’s relatively cheap to start. You might choose to specialize in a specific type of event — like weddings or company meetings — or set yourself up as an event planner of all trades.

The good news is that event planners are always in demand. It’s not an easily automated job, so this small business idea is set to thrive regardless of the digital landscape. To start, you’ll want to look for a platform that will easily allow you to advertise your availability, such as event planner directories like Eventective and WeddingWire .

If you’re highly organized, detail-oriented, and have experience planning large events, it might be time for others to benefit from your skills.

13. Personal Assistant

Personal assistants help business owners and executives take care of administrative tasks. To launch a freelance personal assistant business, you should leverage networking opportunities on LinkedIn and attend small business events at local chambers of commerce. Most local business owners might not even know they need a personal assistant until you market your services to them.

If you’re an organized, highly-detailed person, the life of a personal assistant might be for you. Don’t want to be tied to one office or person all day, every day? Consider becoming a virtual assistant, which allows you a more flexible work environment.

To become an assistant, choose a niche — will you be helping women business owners specifically? Do you have a specific field of expertise, like bookkeeping? A website can also go a long way, and be sure to print business cards for you to hand out during networking events.

14. Consignment Shop Owner

If you have an eye for style but don’t want to invest in the inventory of a brand-new boutique, consider starting a consignment shop. It will allow you to curate a collection of clothing that matches your goals and aesthetic without the overhead of a boutique selling entirely new garments.

The beauty of a small consignment business is that you can now start one online. You can sign up on a platform such as Poshmark , Depop , and even Etsy , then easily start selling your own used fashion from home.

Once you’ve defined your niche — such as vintage clothing, unique locally made art, or colorful shoes — you can begin sourcing new products from your local stores and thrift shops.

15. Caterer

If the personal chef gig is too restrictive for your schedule, consider catering instead. Pick your projects, work on fewer but larger events, and hone in on your time management skills.

Becoming a caterer is a natural step for those who are used to cooking for large events — for instance, you may have already catered your friend’s wedding or brought a 20-person meal to a potluck (that counts, too!).

It’s essential that you have enough temperature-regulated storage for the meals prior to each event, and that you arrange for reliable, temperature-controlled transportation to and from your home kitchen. Alternatively, you can lower your costs by inviting customers to pick up their order at your home.

16. Gym Owner

Kickboxing gyms, yoga studios, CrossFit, oh my! Turn your passion for fitness into a community for others by creating your own gym — start one from the ground up, become an affiliate, or open a franchise location.

Available franchise opportunities include Anytime Fitness, Orangetheory Fitness, Pure Barre, Planet Fitness, Crunch Fitness, and more. Be prepared to take out a loan to finance your franchise — most agreements start with fees upward of $20,000. But the payoff can be tremendous due to brand recognition. You’ll have no trouble recruiting new members as long as you use local marketing strategies .

Alternatively, you can create a local studio, but ideally, it should be for a specific activity instead of general fitness. Yoga, pilates, bootcamp-style gyms, and martial arts perform well as independent fitness studios.

17. Boutique Agency Owner

What’s your specialty? Whether it’s marketing, social media, or PR, it might be time to start your own agency. Many other small businesses need this type of help but don’t have the resources or volume to necessitate a full-time position.

To start an agency, you would ideally have worked in your specialty for a number of years. You should also be prepared to interface directly with clients, fulfill their requirements, and temper their expectations (if they want results in an unreasonably short amount of time).

Consider building a small team and learn from other entrepreneurs who’ve successfully started their own agencies, like Duane Brown of Take Some Risk .

18. Coffee Shop Owner

Turn your caffeine addiction into something a little more lucrative. Opening a franchise or buying an existing shop are lower-risk entry points to the coffee game, but they usually require a little more cash upfront. Starting a shop from scratch requires more planning and work — but it also maximizes your earning potential in the future.

A coffee shop is an excellent fit if you already have a full-time remote job and wish to supplement your income with a small business. You can manage the coffee shop as you work at one of the tables, but be sure to have the budget to hire an experienced barista who can pick up the slack.

If you would like to open a coffee shop and run it full-time on your own, you’ll need to undertake barista training, understand worldwide coffee sources, and have excellent customer service skills.

19. Moving Company

A truck, moving equipment, manpower, and the correct permits and insurance are the building blocks of starting your own moving company . Before you buy your first fleet of trucks, however, start small with a moving van and keep your costs low.

Still sound like too much of an initial investment? Consider offering packing services only, which have a much lower financial barrier to entry. You can partner with moving companies and offer to do their packing, or have them refer clients to you.

You could even take a niche approach to the industry as Astro International has by offering international moving services.

2. Vending Machine Owner

Since 2015, the growth rate for vending machine businesses has increased 1.4%. Even as social distancing restrictions are still in place, this business can still be lucrative if you choose the right locations. High-traffic is key — places like hospitals, schools, and community centers are smart places to start placing your machines to generate enough revenue to cover cost and turn a profit.

3. Social Media Manager

Do you have a knack for social media? As a social media manager, you can use your skills to manage the social media accounts for companies and even individual people. Influencer marketing has become more common and many influencers rely on marketing agencies or employees to help them run their social channels.

Online Business Ideas

If you want a business idea that you can run entirely online, check out the ones below. These ideas are ideal for those looking for a passive income stream. In other words, you shouldn’t need to do too much manual work to launch these businesses from your home or preferred business location.

1. Become an online reseller.

To become an online reseller, all you need is some business savvy and some funds to invest in product stock from manufacturers — or, of course,the willingness to sell your own used items. Generally, this is a low-touch but high-performance way of creating a passive income online business.

Online resellers usually use a platform, such as Facebook Marketplace or Amazon Sellers, to sell either their own or manufacturers’ stock. The benefit of using Facebook Marketplace is that you can begin today with your own Facebook account, and simply list items that you already own.

Interested buyers typically drive directly to your home for pick-up — but if you’re not interested in human interaction, you can leave it outside and have the buyer pay via an online platform.

Blogging is one of the most accessible small businesses to start, and there are countless niches to choose from. That said, because there are many blogs online, you’ll need to learn blog SEO and keyword research to ensure your audience finds you. That way, you actually make money out of your blogging efforts.

The great news is that a small blogging business has a ridiculously low overhead. All you need is a custom domain and your time for writing blog posts.

5. Home-Baked Goods Seller

Warehouse-made, store-bought chocolate chip cookies will never compare to a batch made with love in someone’s home. Simple desserts can be easily baked and packaged to sell at local events or around your neighborhood. Use custom labels and watch the word spread about your goods!

You can begin a baked goods business easily by opening a Facebook and Instagram profile. Facebook and Instagram are both excellent platforms to market your goods, show pictures of your previous baked products, and even showcase happy clients.

Build a loyal following slowly, and save on costs by asking clients to drive to your home to pick up their order. Choosing a niche can be helpful here, or baking in a specific style that can’t be found at grocery store bakeries. The overhead can be especially low if you already have most essential baking supplies.

6. Ecommerce Store Owner

Do you create, collect, or curate anything special? Consider starting an ecommerce store and turning your hobby into a full-time job. Whether you need somewhere to sell all that pottery you’ve been making, or an excuse to search for the sports memorabilia you love tracking down, an ecommerce store can make it financially viable for you to pursue your passion.

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Starting an ecommerce store is simple and easy. You can set up a shop using an ecommerce website builder , all of which start at a minimal monthly subscription (some even start at free). Be sure to take good photos of your products and write descriptive product pages .

If you don’t have inventory, you can always own an ecommerce store by using dropshipping . Instead of creating and shipping your products yourself, you’ll instead partner with a dropshipping website and have them mail out the orders directly to your client.

7. House Cleaner

With a low barrier to entry, house cleaning can be a great way to start doing what you love — soon. Consider advertising to homes in your neighborhood and get more bang for your buck by earning a few small businesses as clients as well. They’ll usually bring in a higher paycheck for a similar amount of work.

To become a house cleaner, you should be prepared to invest in cleaning supplies and accessories, or be willing to use your own. If you plan to serve small businesses, you should buy industrial janitorial supplies so you can get work done more effectively.

Need some inspiration? This small business cleaning service grew virtually overnight on Instagram after their content went viral during the pandemic.

Learn more about choosing the right structure for your business from the Small Business Administration.

6. Create a business bank account.

Once you have a legally formed business and have been issued an Employer Identification Number (EIN), open a bank account specifically for your business. Having a business bank account is essential for keeping your personal and business finances separate which can help you gain an accurate picture of your business’s cash flow and financial health.

Additionally, keeping your personal and business finances separate makes bookkeeping and tax preparation easier.

Many banks offer business checking and savings accounts. Business checking accounts typically do not have a limit on the number of transactions that can take place, and issue a debit card that can be used for making business purchases. However, these checking accounts do not accrue interest.

Business savings accounts typically earn interest over time but have a limited number of transactions that can occur each month. When you’re just starting out, look for a business bank account that does not have a minimum balance requirement so you are not penalized for having low funds as you work to build your business.

7. Determine if your business idea works well from home.

Ask yourself whether your business idea will work well from home. Some businesses simply aren’t suited to be based from home. If you want to run a dog boarding center but live in an apartment without a backyard, you might want to consider a dog walking business instead.

8. Set up an office.

If your business idea is well-suited for being run from home, it’s still important you have a designated workspace. While a home office might not be possible, consider setting aside a corner in your living room or putting a desk in your bedroom for a space that inspires you and creates the conditions for success.

Need a more professional space? If you conduct client-facing work requiring you to be on video calls, no one wants to see your rumpled sheets in the background. Check out local coworking spaces for memberships that earn you access to conference rooms, desk space, and more.

9. Get to work!

You’ve put in the hard work, but I’ve got bad news — it’s only going to get harder. But most entrepreneurs will agree that the payoff of being your own boss, making your own hours, and working on projects that you’re passionate about will pay dividends for the rest of your life.

What are the types of small businesses?

The types of small business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.

• Sole Proprietorship — The simplest type of business structure is a sole proprietorship, which is also the easiest to start. As a sole proprietor, you are personally responsible for the business's liabilities and profits, and you have complete control over your business. If you are a solopreneur, you are automatically considered a sole proprietor.
• Partnership — A partnership is a business model involving two or more individuals who agree to share the business‘s profits and liabilities. Each partner contributes to the business and shares the risks and rewards. It’s essential to have a partnership agreement that defines each partner's roles and responsibilities to ensure clarity and prevent potential misunderstandings.
• Limited Liability Company (LLC) — An LLC, or limited liability company, is a common option for small businesses because it protects its owners by separating personal assets from the company's liabilities. To form an LLC, the business owner must file the required paperwork with the state.
• Corporation — A corporation is an independent legal entity distinct from its owners. It provides limited liability protection to its shareholders, who are not held personally accountable for the company's debts. Corporations have formal requirements and often raise capital by issuing stocks or shares.

Which business type is best?

The best business type is a limited liability company (LLC). Operating as an LLC means that your personal assets are separate from your business assets. If your business goes bankrupt, your personal holdings won’t be affected. That said, it’s also one of the costlier types, requiring a fee paid to the state.

The easiest business type to start is a sole proprietorship. The main downside is that there’s no differentiation between you and your business.

It's crucial to seek advice from legal or accounting professionals to determine the best business structure based on your unique needs and objectives. Each structure has advantages, legal requirements, tax implications, and flexibility considerations.

How do I create a business idea?

To create a business idea, determine your skill set, work preferences, startup budget, and available resources. It’s important to strike the right balance between what you can feasibly offer and what you can feasibly afford in the short and long term.

We recommend starting with your skill set so that you can easily determine the niche in which you can effectively compete. For instance, if you have ample experience as a writer, you might consider starting a freelance writing business. But if you know you’d prefer to work with clients face-to-face, you might choose to start a ghostwriting business instead. That’s why it’s so important to take your work preferences into account, as well.

After that, take a look at your budget and determine the type of business you can start based on the resources at your disposal. For instance, you might not be able to afford a physical office or location, so a location-based business will likely not be a good fit. In that case, starting an online business is your best option.

What resources or tools can I use to refine and validate my business ideas during the brainstorming process?

Online market research tools like Google Trends, Keyword Planner, and SEMrush can provide insights into market demand, competition, and keyword trends related to your business niche. Industry reports and market analyses from reputable sources such as IBISWorld, Gartner, Statista, and industry-specific publications can offer valuable data and trends to inform your decision-making. Ensure you know the industry risk before embarking on your small business venture.

→ Download Now: Market Research Kit [Free Download]

Additionally, joining entrepreneurial communities, forums, and social media groups can provide opportunities to seek feedback, network with like-minded people, and gain insights from experienced entrepreneurs. Finally, consider conducting surveys or interviews with potential customers to gather feedback and validate your business concept before investing significant time and resources.

What are some of the most successful small businesses?

Every small business has the potential to be successful and profitable, provided it’s backed by a strong product-market fit and a robust business plan . These two elements are essential. Maybe postnatal services are one of the most successful small businesses to launch, but if you live in an area with declining population or a large elderly population, then that small business idea won’t yield a high return on investment.

Think carefully about the market where you’re launching your business, and you’ll be more than likely to see lasting success.

What are the top growing small businesses?

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Strategic Planning Secrets Every CEO Must Know

by Dave Lorenzo | Nov 2, 2023 | Business Strategy | 0 comments

Table of Contents

Strategic Planning for Small Businesses: Focus on the Ten Key Drivers of Enterprise Value

Strategic planning is a critical process for the success and growth of any business, regardless of its size. However, for small businesses, a strategic plan plays a particularly vital role in ensuring long-term sustainability and prosperity. In this business strategy article, we will delve into the concept of strategic planning for small businesses, emphasizing its significance and the ten key drivers of enterprise value that every CEO must assess and improve regularly.

1. Revenue Streams (Diversity and Quality)

Revenue is the lifeblood of any business, and small businesses are no exception. Assessing and improving revenue streams is the first step in strategic planning for small businesses. It involves not only increasing revenue but also diversifying it to reduce reliance on a single source. Additionally, ensuring the quality of your revenue streams is crucial for sustainable growth.

The Role of Revenue Diversity in Strategic Planning for Small Businesses

Revenue diversity refers to the distribution of income within a business and how it’s generated. In any business, there are four distinct types of revenue:

1. Ad Hoc Revenue: Ad Hoc Revenue is income derived from clients who engage with your business on a one-time basis for a specific project. These clients do not provide ongoing work and are typically project-based.

2. Repeat Revenue: Repeat Revenue is earned through multiple projects from the same client. These clients return for various services, establishing a more consistent income stream compared to ad hoc clients.

3. Recurring Revenue: Recurring Revenue stems from working with the same client on the same type of work repeatedly. It often involves long-term contracts or subscriptions that provide a reliable income source.

4. Passive Revenue: Passive Revenue is generated through referrals or without direct involvement from a member of the company. This type of income requires little ongoing effort but can be highly lucrative.

Benefits of Revenue Diversity in Strategic Planning for Small Businesses

Small businesses benefit greatly from revenue diversity, and strategic planning plays a crucial role in ensuring the right mix of revenue sources. The primary goal of strategic planning for small businesses is to have a revenue mix that consists of at least 80% repeat or recurring revenue. Here’s why this is important:

1. Stability: Having a substantial portion of your revenue coming from repeat or recurring sources provides financial stability. It reduces the risk associated with relying on one-time projects and minimizes revenue fluctuations.

2. Predictability: A steady stream of repeat or recurring revenue makes it easier to forecast future income, enabling better financial planning and investment decisions.

3. Customer Relationships: Building long-term relationships with clients through repeat and recurring revenue streams fosters trust and loyalty. Satisfied customers are more likely to refer your business, contributing to passive revenue.

4. Business Growth: By focusing on repeat and recurring revenue, small businesses can allocate resources more efficiently. This approach allows for gradual, sustainable growth rather than relying on sporadic income spikes.

5. Risk Mitigation: Diversifying your revenue sources reduces vulnerability to economic downturns or fluctuations in specific industries, making your business more resilient.

In the realm of small business strategic planning, revenue diversity is a critical factor that cannot be overlooked. Ensuring a significant portion of revenue comes from repeat or recurring sources contributes to financial stability, predictability, customer loyalty, and sustainable growth. Small businesses that aim for at least 80% of such revenue sources will find themselves better positioned to thrive and weather challenges in the ever-evolving landscape of entrepreneurship. Strategic planning for small businesses is the compass that guides them towards achieving this vital revenue diversity.

2. Leadership Development and Management Team Retention

Effective leadership is a cornerstone of business success and it must be addressed in your business strategy . Small business CEOs should focus on nurturing leadership skills within their organization and retaining a capable management team. Leadership development programs and strategies for retention of top talent are essential components of strategic planning for small businesses.

Key Aspects of Leadership Development in Strategic Planning

1. Identifying Leadership Gaps: Effective leadership development begins with identifying gaps in the existing team’s skills and competencies. For example, if a small tech company lacks expertise in digital marketing, the leadership team should prioritize hiring or training individuals with these skills.

2. Leadership Training Programs: Developing in-house leadership talent can be cost-effective and rewarding. Small businesses can implement training programs to cultivate leadership skills. For instance, offering leadership workshops or mentorship opportunities can empower employees to take on greater responsibilities.

3. Succession Planning: Succession planning is a critical element of leadership development . Small businesses must identify potential future leaders within the organization. For instance, a family-owned restaurant might groom the head chef to eventually take over as the general manager.

4. Leadership by Example: Small business leaders should lead by example. Their behavior and work ethic set the tone for the entire team. Demonstrating the values and skills expected from leaders can inspire and guide other team members.

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Important Elements of Management Team Retention as Part of a Small Business Strategic Plan

1. Competitive Compensation Packages: Small businesses should offer competitive compensation packages to attract and retain top talent. For example, a marketing agency can provide performance-based bonuses and benefits like health insurance to keep their key team members engaged.

2. Recognition and Appreciation: Regular recognition and appreciation of employees can significantly impact retention. Acknowledging outstanding contributions in team meetings or through awards can make employees feel valued and committed to the organization.

3. Professional Development Opportunities: Providing opportunities for professional growth is vital for team retention. Small businesses can offer tuition reimbursement, workshops, or certifications to help employees advance in their careers while contributing to the company.

4. Flexible Work Arrangements: In today’s work environment, flexibility is highly valued. Small businesses can improve team retention by offering flexible work arrangements such as remote work options or flexible hours, accommodating employees’ work-life balance needs.

The Role of Leadership Development and Management Team Retention in Strategic Planning

Leadership development and management team retention are integral to strategic planning for small businesses. An organized leadership development plan ensures that the team is equipped with the skills needed for growth, while a management succession plan that acts as a roadmap for retaining top talent is equally crucial. These aspects contribute to long-term success and sustainability.

Strategic planning for small businesses involves creating a well-defined roadmap that includes a structured approach to leadership development and talent retention. When executed effectively, this strategy fosters a resilient and thriving business, ready to navigate the challenges and opportunities that lie ahead. Strategic planning for small businesses requires a combination of short-term and long-term goals to ensure leadership development and talent retention are continuous priorities within the organization.

3. Operations Standard Operating Procedures (SOPs)

Efficiency in operations is key to small business success. Developing and implementing Standard Operating Procedures (SOPs) can streamline processes, reduce errors, and increase productivity. Regularly reviewing and improving SOPs is a crucial part of strategic planning.

Operations Standard Operating Procedures in Small Business Strategic Planning

Standard Operating Procedures are documented guidelines that outline specific processes and routines within a business. They provide step-by-step instructions to employees, ensuring tasks are consistently performed to meet predefined quality and efficiency standards.

The Role of SOPs in Strategic Planning

1. Enhancing Efficiency: SOPs are designed to streamline operations by establishing clear processes. When employees have well-defined steps to follow, it reduces the likelihood of errors, confusion, and inefficiency. For example, a small e-commerce business may have an SOP that outlines the steps for order fulfillment, from receiving an order to shipping the product, ensuring a smooth process every time.

2. Consistency and Quality: SOPs ensure that each task or process is executed consistently. This consistency contributes to the overall quality of products or services offered by the business. For instance, a small bakery can use SOPs to ensure that every batch of bread or pastry is baked to the same high standard.

3. Training and Onboarding: SOPs are invaluable for training new employees. They provide a structured way to teach new team members the essential procedures of the business. This is especially crucial for small businesses that may experience frequent turnover. A retail store can use SOPs to train new cashiers on how to handle transactions and customer interactions.

4. Risk Mitigation: SOPs help mitigate risks by ensuring that employees follow safety procedures, comply with industry regulations, and adhere to best practices. For instance, a small manufacturing company may use SOPs to ensure that employees use safety equipment correctly, reducing the risk of workplace accidents.

Strategic Planning and SOPs

Strategic planning for small businesses involves setting goals, defining priorities, and outlining the path to achieving them. Standard Operating Procedures are an integral part of this process for the following reasons:

1. Process Optimization: Strategic planning identifies areas where processes can be improved or new ones implemented. SOPs provide a detailed guide for implementing these changes efficiently.

2. Scalability: As small businesses grow, they must scale their operations. Standard Operating Procedures allow for a smooth transition, ensuring that new employees understand the processes and can adapt to increased workloads.

3. Resource Allocation: SOPs help identify areas where resources, including time and labor, can be allocated more efficiently. This aligns with the strategic goals of cost reduction and revenue growth.

4. Adaptability: In an ever-changing business landscape, small businesses need to be adaptable. SOPs can be updated to incorporate changes in technology, regulations, or market conditions, keeping the business aligned with its strategic objectives.

In the world of small business strategic planning, operations standard operating procedures are indispensable tools. They enhance efficiency, maintain consistency, facilitate training, and mitigate risks. Integrating SOPs into business strategy ensures that a small business remains nimble, efficient, and focused on achieving its long-term goals. Strategic planning for small businesses must recognize the significance of Standard Operating Procedures and leverage them as a means to drive growth and success in an ever-evolving marketplace.

4. Human Resources Best Practices in Strategic Planning for Small Businesses

Small businesses often operate with limited staff. Ensuring that human resources practices are optimized is vital. This includes recruitment, training, performance evaluation, and employee engagement. Small business CEOs must regularly assess and enhance HR practices to maintain a motivated and productive workforce.

Human Resources Best Practices in Small Business Strategic Planning

HR best practices are a set of guidelines, strategies, and principles that organizations adopt to manage their workforce efficiently, create a positive work environment, and maximize employee productivity. These practices encompass recruitment, training, performance management, compensation, and more.

The Role of HR Best Practices in Strategic Planning

1. Recruitment and Onboarding: Effective recruitment and onboarding processes are fundamental to HR best practices. When strategically planned, they ensure that small businesses attract the right talent and integrate new employees seamlessly. This aligns with the strategic goal of building a strong team. For instance, a small tech startup seeking to expand can implement streamlined recruitment processes to find the best software developers.

2. Employee Development and Training: Human Resources best practices emphasize continuous employee development and training. This supports strategic planning by ensuring that employees acquire new skills and knowledge required for the company’s growth. A small marketing agency, for example, might provide regular training to help employees stay updated on the latest marketing trends and technologies.

3. Performance Management and Feedback: Regular performance evaluations, feedback, and goal setting are integral parts of HR best practices. When incorporated into strategic planning, these practices help small businesses set clear performance objectives and assess progress towards their goals. A small retail store can use performance management to ensure its sales team meets specific sales targets, aligning with the strategic plan for revenue growth.

4. Compensation and Benefits: Compensation and benefits are key components of HR best practices. Properly structuring compensation packages ensures that employees are motivated and rewarded for their contributions. Strategic planning may involve setting financial objectives, and HR best practices can help design incentive programs to align employee performance with these objectives. For instance, a small manufacturing company may implement a performance-based bonus system to motivate its production team to increase output.

Strategic Planning and HR Best Practices

Strategic planning for small businesses involves setting clear objectives, defining a roadmap, and allocating resources to achieve long-term goals. Human resources best practices are essential in this process for several reasons:

1. Aligning the Workforce: HR practices ensure that the workforce is aligned with the strategic goals of the business. This means having the right people in the right positions with the necessary skills to execute the strategic plan.

2. Employee Engagement: Engaged and satisfied employees are more likely to contribute to the company’s success. HR best practices foster a positive work environment, which, in turn, supports the strategic goals of improved productivity, innovation, and customer satisfaction.

3. Adapting to Change: Small businesses often need to adapt to changing market conditions and industry trends. HR practices allow for workforce flexibility and can facilitate organizational changes, helping the company stay agile and responsive to evolving circumstances.

4. Retaining Talent: High employee turnover can be detrimental to small businesses. HR best practices help retain talent, which is essential to maintaining consistency and expertise within the organization, aligning with the strategic goals of long-term growth and stability.

In the realm of small business strategic planning, Human resources best practices are integral to achieving long-term objectives. By focusing on recruitment, training, performance management, and compensation, small businesses can strategically align their workforce with their goals, create a positive work environment, and maintain a competitive edge in the ever-evolving business landscape. Strategic planning for small businesses must recognize the significance of HR best practices and integrate them as a means to drive growth, success, and long-term sustainability.

5. Assessing Legal Exposure in Strategic Planning for Small Businesses

Legal compliance is a critical aspect of strategic planning for small businesses. Ensuring that your business adheres to local, state, and federal laws is essential. Regular legal audits can help identify potential risks and areas where improvements are needed.

Legal exposure refers to the potential legal risks and liabilities that a business may face due to its operations, transactions, or industry-specific factors. These risks can include issues related to contracts, compliance with laws and regulations, intellectual property, employment matters, and more.

The Role of Assessing Legal Exposure in a Strategic Plan

1. Identifying Potential Risks: Assessing legal exposure involves a comprehensive evaluation of a business’s operations to identify potential legal risks. For example, a small restaurant may assess legal exposure related to health and safety regulations, employee contracts, and food safety standards.

2. Compliance with Laws and Regulations: Ensuring that the business complies with all relevant laws and regulations is a crucial aspect of assessing legal exposure. This supports strategic planning by minimizing the risk of legal disputes and financial penalties. A small accounting firm, for instance, may focus on tax regulations and compliance when assessing legal exposure.

3. Contractual Agreements: Small businesses often engage in various contractual agreements, including partnerships, customer contracts, and vendor agreements. Assessing legal exposure involves reviewing these contracts to ensure that they are clear, fair, and legally sound. Small manufacturing companies, for example, may assess exposure related to supplier contracts.

4. Intellectual Property Protection: Protecting intellectual property, such as trademarks and patents, is vital for many businesses. Assessing legal exposure includes safeguarding these assets to support strategic planning objectives, like market expansion. A small software development company may focus on protecting its proprietary software code.

Strategic Planning and Assessing Legal Exposure

In the realm of small business strategic planning, assessing legal exposure is a critical step for several reasons:

1. Risk Mitigation: Strategic planning aims to identify and mitigate potential risks that could hinder business growth and sustainability. By assessing legal exposure, small businesses can proactively address legal risks, reducing the likelihood of costly litigation and damage to the company’s reputation.

2. Financial Stability: Legal disputes and non-compliance with laws and regulations can lead to significant financial burdens. Assessing legal exposure allows small businesses to allocate resources efficiently, ensuring that legal issues do not drain their financial resources.

3. Reputation Management: Maintaining a positive business reputation is essential for growth and customer trust. Legal issues can damage a small business’s reputation. By assessing legal exposure and adhering to best practices, a company can protect its image and continue to attract customers.

4. Strategic Decision-Making: When small businesses assess legal exposure, they gain a comprehensive understanding of potential legal pitfalls. This knowledge informs strategic decision-making, helping the company make informed choices that align with its long-term goals and objectives.

In the world of small business strategic planning, assessing legal exposure is a fundamental element that cannot be overlooked. By identifying and mitigating legal risks, small businesses can navigate the complex legal landscape, minimize financial vulnerabilities, protect their reputation, and make strategic decisions that support growth and long-term success. Strategic planning for small businesses must recognize the significance of assessing legal exposure and integrate it as a means to mitigate risks and drive sustainable growth.

6. Evaluating Brand Reputation in Strategic Planning for Small Businesses

Your brand’s reputation directly impacts customer trust and loyalty. Small business CEOs should actively manage and enhance their brand’s image. This includes monitoring online reviews, addressing customer concerns, and delivering high-quality products or services.

Brand reputation refers to the perception, trust, and image that consumers have of a company. It is influenced by a business’s actions, products, services, and interactions with customers, as well as its marketing efforts. A strong brand reputation can significantly impact a company’s success, while a damaged reputation can be detrimental.

The Role of Evaluating Brand Reputation in a Strategic Plan

1. Understanding Customer Perceptions: Evaluating brand reputation involves understanding how customers perceive the business. This can be done through surveys, online reviews, social media monitoring, and other customer feedback channels. For example, a small boutique hotel may use online reviews and guest surveys to gauge how customers view their services.

2. Building Trust and Credibility: A strong brand reputation builds trust and credibility among customers. Trust is a key component of strategic planning, as it is essential for customer retention and attracting new clients. A small financial advisory firm, for instance, may prioritize building trust with its clients through transparent financial services.

3. Identifying Areas for Improvement: Evaluating brand reputation often uncovers areas where the business can improve. Small businesses can use this feedback to refine their products, services, and customer interactions. A small restaurant, for instance, may use customer feedback to enhance its menu, service quality, or ambiance.

4. Reputation Management: Managing and maintaining a positive brand reputation is an ongoing process. By evaluating brand reputation regularly, small businesses can identify issues and proactively address them, ensuring the brand remains positive and trustworthy. This aligns with the strategic goal of maintaining a strong customer base and attracting new business.

Strategic Planning and Evaluating Brand Reputation

Evaluating brand reputation is an essential part of strategic planning for small businesses for several reasons:

1. Customer-Centric Approach: Strategic planning aims to create a customer-centric approach that focuses on delivering value and satisfaction. Evaluating brand reputation helps small businesses understand what customers value and what they expect, enabling the company to align its strategy with these preferences.

2. Competitive Advantage: A positive brand reputation can provide a competitive advantage. Small businesses can leverage their reputation to stand out in their market, attracting more customers and commanding higher prices for their products or services.

3. Long-Term Sustainability: Building a strong brand reputation is essential for the long-term sustainability of a small business. It fosters customer loyalty and encourages repeat business, a strategic goal for growth and stability.

4. Crisis Preparedness: Small businesses can proactively prepare for potential crises or negative incidents by evaluating brand reputation. This preparedness ensures the business can respond quickly and effectively in the event of reputation-damaging situations.

In the world of small business strategic planning, evaluating brand reputation is an integral component that directly impacts the company’s success. By understanding customer perceptions, building trust, identifying areas for improvement, and proactively managing their reputation, small businesses can create a solid foundation for growth and long-term success. Strategic planning for small businesses must recognize the significance of evaluating brand reputation and leverage it as a means to enhance customer trust, drive growth, and ensure sustainability in a competitive market.

7. Examining Sales and Marketing Systems and Support in Strategic Planning for Small Businesses

A well-structured sales and marketing strategy can significantly impact a small business’s growth. CEOs should regularly assess their sales and marketing systems, including digital presence, advertising, and customer support. Make necessary adjustments to stay competitive in your industry.

Sales and marketing systems and support encompass the strategies, processes, tools, and teams responsible for generating leads, nurturing prospects, and converting them into customers. It involves various elements, including customer relationship management (CRM) systems, marketing campaigns, sales teams, and customer support.

The Role of Examining Sales and Marketing Systems and Support in a Strategic Plan

1. Assessing Lead Generation: Evaluating sales and marketing systems begins with assessing lead generation strategies. Small businesses must determine which marketing channels, such as social media, email campaigns, or content marketing, are most effective in reaching their target audience. For example, a small online clothing boutique may find that social media advertising generates the most leads. Another example is an attorney or other professional service provider becoming a paid public speaker . This may be one of its best marketing strategies for small business.

2. Nurturing Prospects: Successful marketing and sales systems involve nurturing leads effectively, guiding them through the sales funnel. Examining these processes helps small businesses ensure they have the right communication strategies in place to keep prospects engaged. A small software company, for instance, might use email marketing to provide valuable content to prospects, keeping them interested in their software solutions.

3. Analyzing Conversion Rates: Conversion rates play a crucial role in assessing marketing and sales systems. Small businesses must evaluate how well they convert leads into paying customers. Examining these rates allows companies to identify areas for improvement. For instance, an e-commerce business might analyze the effectiveness of its checkout process and identify ways to reduce cart abandonment.

4. Enhancing Customer Support: Exceptional customer support is a vital part of sales and marketing. It can lead to repeat business and customer loyalty. Small businesses should assess their customer support practices and seek opportunities to provide better service. A small restaurant, for example, may examine its service quality, response times to customer inquiries, and feedback processes to ensure an exceptional dining experience.

Strategic Planning and Examining Sales and Marketing Systems and Support

Examining sales and marketing systems and support is essential in strategic planning for small businesses for several reasons:

1. Revenue Growth: Strategic planning aims to drive revenue growth. A well-structured sales and marketing system helps identify opportunities for increasing sales and expanding the customer base.

2. Customer Retention: Retaining customers is just as important as acquiring new ones. Evaluating sales and marketing systems helps improve customer support, leading to satisfied customers who are more likely to return and recommend the business to others.

3. Cost Efficiency: Strategic planning involves optimizing resource allocation. By assessing sales and marketing systems, small businesses can allocate their budget more efficiently by investing in the most effective channels and campaigns.

4. Competing Effectively: Staying competitive in the market requires small businesses to continuously assess their sales and marketing strategies and adapt to changing customer behavior and market trends.

In small business strategic planning, examining sales and marketing systems and support is an integral component that can drive growth and long-term success. By assessing lead generation, nurturing prospects, analyzing conversion rates, and enhancing customer support, small businesses can create a robust foundation for their strategic objectives. Strategic planning for small businesses must recognize the significance of these elements and integrate them as a means to boost revenue, enhance customer loyalty, and achieve sustainability in a dynamic business landscape.

8. Accurately Evaluating Market, Industry, and Supplier Conditions in Strategic Planning for Small Businesses

The business environment is dynamic, and small businesses must adapt to market and industry changes. Keep a close eye on market trends, competitors, and supplier relationships. Adjust your strategy as needed to remain competitive and seize new opportunities.

Accurately evaluating market, industry, and supplier conditions involves a comprehensive examination of external factors that impact a small business. These factors include market trends, competitive landscape, regulatory changes, technological advancements, and the stability and reliability of suppliers.

The Role of Accurately Evaluating Market, Industry, and Supplier Conditions in Strategic Planning

1. Market Analysis: Accurately evaluating market conditions entails analyzing customer preferences, market trends, and demand patterns. For instance, a small e-commerce business may assess the growing trend of online shopping and the increasing demand for eco-friendly products.

2. Industry Insights: Understanding industry conditions requires a deep dive into the competitive landscape, industry regulations, and potential disruptors. Small businesses must identify emerging competitors, anticipate regulatory changes, and adapt to shifts in consumer behavior. For example, a small cybersecurity firm may monitor emerging threats and regulatory changes that impact the industry.

3. Supplier Evaluation: Reliable suppliers are crucial for business operations. Evaluating supplier conditions involves assessing their stability, quality, and reliability. A small restaurant, for instance, may rely on local food suppliers and should regularly assess their ability to provide consistent, high-quality ingredients.

4. Risk Assessment: Part of evaluating market, industry, and supplier conditions is assessing potential risks and vulnerabilities. By identifying potential threats and challenges, small businesses can proactively develop risk mitigation strategies. A small construction company, for instance, may assess the risks associated with economic downturns, supply chain disruptions, or regulatory changes.

Strategic Planning and Accurately Evaluating Market, Industry, and Supplier Conditions

Accurately evaluating market, industry, and supplier conditions is an essential step in strategic planning for small businesses for several reasons:

1. Informed Decision-Making: Strategic planning relies on informed decision-making. Understanding market, industry, and supplier conditions provides the necessary information to make strategic choices and allocate resources effectively.

2. Adaptability: Small businesses must adapt to a rapidly changing business environment. Accurate evaluation of external conditions helps the company stay agile, adjust to market shifts, and capitalize on emerging opportunities.

3. Competitive Advantage: By staying updated on industry and market trends, small businesses can gain a competitive advantage. This knowledge allows them to differentiate themselves, offer unique value to customers, and outperform competitors.

4. Long-Term Sustainability: Sustainable growth and long-term success are the ultimate objectives of strategic planning. Accurately assessing external conditions allows small businesses to build a strategy that is resilient and adaptable, ensuring they can thrive in an ever-changing marketplace.

In small business strategic planning, accurately evaluating market, industry, and supplier conditions is a fundamental component that cannot be underestimated. By understanding market dynamics, industry trends, and the reliability of suppliers, small businesses can make informed decisions, adapt to changing conditions, gain a competitive edge, and secure long-term success. Strategic planning for small businesses must recognize the significance of this evaluation and leverage it as a means to thrive in a dynamic and evolving business landscape.

9. Reviewing Financial Condition and Reporting as a Critical Aspect of Strategic Planning for Small Businesses

Financial stability is a cornerstone of business success. Small business CEOs should regularly review financial statements, budgets, and forecasts. Understanding your financial condition and reporting is essential for making informed decisions.

Reviewing financial condition and reporting involves a comprehensive examination of a small business’s financial health, including its balance sheets, income statements, cash flow, budgeting, and financial forecasts. This process aims to ensure that a company’s financial resources are aligned with its strategic objectives and that the financial performance is well-documented and transparent.

The Role of Reviewing Financial Condition and Reporting in a Strategic Plan

1. Financial Health Assessment: Assessing financial condition provides a clear picture of a small business’s financial health. It evaluates liquidity, profitability, and solvency, helping to identify strengths and weaknesses. For example, a small manufacturing company may assess its liquidity to ensure it has enough capital to meet operational needs and support growth initiatives.

2. Informed Decision-Making: Strategic planning hinges on informed decision-making. Reviewing financial condition and reporting equips small businesses with the data needed to make sound financial choices, allocate resources efficiently, and prioritize strategic initiatives. A small retail store, for instance, may use financial data to decide on inventory expansion or marketing campaigns.

3. Risk Mitigation: Identifying financial risks is a vital part of reviewing financial condition. It helps small businesses develop risk mitigation strategies, such as establishing financial reserves or securing lines of credit. A small technology startup may assess the risk of unforeseen market changes and create contingency plans accordingly.

4. Performance Monitoring: Small businesses use financial reporting to monitor performance against strategic goals and benchmarks. It ensures that the company remains on track and can quickly identify deviations that need corrective action. For example, a small software development firm may compare financial data to their growth objectives, making adjustments as needed.

Strategic Planning and Reviewing Financial Condition and Reporting

Reviewing financial condition and reporting is an essential step in strategic planning for small businesses for several reasons:

1. Resource Allocation: Strategic planning involves optimizing resource allocation. By assessing financial condition and reporting, small businesses can ensure they allocate their budgets to initiatives that align with their long-term goals, such as expansion, innovation, or debt reduction.

2. Growth Planning: Fiscal health and performance indicators inform growth planning. Small businesses can use this data to set growth targets, identify funding needs, and secure investments when necessary.

3. Long-Term Sustainability: Financial stability is critical for the long-term sustainability of small businesses. Reviewing financial condition and reporting supports the creation of a financial strategy that ensures ongoing success and adaptation to changing market conditions.

4. Legal and Regulatory Compliance: Small businesses need to comply with various financial and tax regulations. Reviewing financial condition ensures that financial reporting aligns with legal requirements, avoiding legal complications and financial penalties.

When working on small business strategic planning, reviewing financial condition and reporting is an integral component that cannot be underestimated. By assessing financial health, making informed decisions, mitigating risks, and monitoring performance, small businesses can build a solid foundation for strategic success. Strategic planning for small businesses must recognize the significance of this evaluation and leverage it as a means to drive fiscal health, make informed decisions, and secure long-term success in a dynamic business landscape.

10. Auditing Cyber Security Risk and Information Technology Systems in Strategic Planning for Small Businesses

In today’s digital age, cyber security is paramount. Assessing and improving your business’s information technology systems and defenses against cyber threats is a vital component of strategic planning. Protecting your data and customer information is non-negotiable.

Auditing cyber security risk and IT systems involves a thorough examination of a small business’s digital infrastructure, security protocols, and policies. This audit aims to identify vulnerabilities, evaluate existing cyber security measures, and ensure that information technology systems are robust and resilient.

The Role of Auditing Cyber Security Risk and Information Technology Systems in Strategic Planning

1. Risk Assessment: Auditing cyber security risk helps small businesses assess the potential threats and vulnerabilities that could compromise their digital assets. This assessment is crucial for understanding the company’s risk profile and guiding strategic planning. For example, a small e-commerce business may identify vulnerabilities in its payment processing system and develop a plan to mitigate these risks.

2. Compliance and Regulation: Small businesses often need to adhere to industry-specific regulations and compliance requirements regarding data security and privacy. Auditing cyber security risk and IT systems ensures that the business complies with these standards, preventing legal and financial repercussions. A small healthcare clinic, for instance, must follow Health Insurance Portability and Accountability Act (HIPAA) regulations for patient data security.

3. Protecting Intellectual Property: Small businesses may possess valuable intellectual property that needs protection. An audit helps ensure that proprietary information is safeguarded against unauthorized access and cyber threats. A small software development company, for example, would audit its source code and data to protect its intellectual property.

4. Data Loss Prevention: Cyber security audits focus on data loss prevention, ensuring that critical data is regularly backed up and recoverable in the event of cyberattacks or system failures. Small businesses can strategize effectively by ensuring data continuity and minimizing downtime. A small marketing agency may audit its data backup protocols to ensure client data is safe.

Strategic Planning and Auditing Cyber Security Risk and Information Technology Systems

Auditing cyber security risk and information technology systems is a fundamental part of strategic planning for small businesses for several reasons:

1. Risk Mitigation: Strategic planning aims to identify and mitigate potential risks that could hinder business growth and sustainability. By auditing cyber security risk and IT systems, small businesses can proactively address digital vulnerabilities, reducing the likelihood of cyberattacks and data breaches.

2. Adaptability: Small businesses must adapt to the evolving landscape of cyber threats and technology changes. Auditing cyber security risk and IT systems allows the company to stay agile and responsive to emerging digital challenges.

3. Reputation Protection: A data breach or cyberattack can damage a small business’s reputation. Protecting digital assets and customer data through audits helps maintain customer trust and ensure the company’s long-term success.

4. Legal Compliance: Small businesses must comply with various data protection and cyber security regulations. Auditing cyber security risk ensures that the company meets legal requirements, avoiding potential legal complications and financial penalties.

In the world of small business strategic planning, auditing cyber security risk and information technology systems is a crucial component that cannot be overlooked. By assessing digital vulnerabilities, ensuring compliance, protecting intellectual property, and preventing data loss, small businesses can create a robust foundation for strategic success. Strategic planning for small businesses must recognize the significance of this audit and leverage it as a means to safeguard digital assets, support growth, and ensure long-term success in a digital age.

Strategic planning for small businesses entails assessing and improving the ten key drivers of enterprise value listed above. By focusing on revenue streams, leadership development, SOPs, human resources, legal compliance, brand reputation, sales and marketing, market conditions, financial reporting, and cyber security, small business CEOs can chart a path to sustainable growth and success. Remember, strategic planning is not a one-time task but an ongoing process of continuous improvement that can help your business thrive in the competitive landscape.

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A Beginner's Guide to Business Succession Planning for Small- and Mid-Size Business Owners

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Having a business succession plan in place can minimize fallout if you lose a key employee. While it takes some extra analysis and foresight — and some transparent communication and documentation — it can pay off when a transition to new leadership goes smoothly.

As you run your business, you're likely focused on the day-to-day challenges. But time can go by quickly, and it's crucial to plan the next generation of leaders.

Proper business succession planning — that is, identifying and developing employees to step into future roles — can set you up for success down the road while also improving your employee retention rates and engagement now.

"It's a strategic approach to thinking about scenarios and plans to ensure smooth transitions between current and future incumbents," says Jay Caldwell, chief talent officer at ADP.

Let's explore the basics of business succession planning, including the benefits of doing it, key steps to take to set it up and the challenges you may encounter (and their solutions).

What is business succession planning?

Succession planning primarily focuses on how you'll replace essential leadership roles in your organization, including the owner and CEO. It may also include guidelines for continuity in other positions that are critical for success or difficult to fill. The idea is to start training and nurturing the next round of talent so you aren't left scrambling if a key employee quits, retires, gets sick or passes away.

Your succession plan may also include operational exit planning detailing what you'd like to happen when you or other top stakeholders retire. Documentation can settle decisions ahead of time such as whether you'd like to leave the business to family, sell it to another company or set up a buy-out with your employees.

"Every business owner wants to minimize distractions to their operations and goals," Caldwell notes. "Changes in leaders can be quite disruptive, particularly if there is not a plan in place."

Succession planning keeps your business running smoothly even when key employees leave. This is one just of the reasons to make business succession planning a priority .

Succession planning can help you find candidates and retain them

However, strategic workforce planning is sometimes not on the radar for small and mid-size business owners. Only 35 percent of these businesses have started the process, and of this group, only 8 percent have a complete written plan, according to 2022 research from MassMutual .

"It could be because of the demands of their operations, a lack of development resources or simply overlooking the importance of planning for transitions," Caldwell observes.

One common issue for smaller organizations when it comes to this type of planning is that you usually don't have a broad bench of talent to draw on. However, if you're thinking about the future of your business early on, you're more likely to ensure a viable candidate has been trained, whether internally or outside your organization. It can keep you from having to do a sudden — and possibly costly — hiring search. It also saves you and other leadership from working overtime to handle the role while looking for a replacement.

Your succession plan can prevent the loss of critical knowledge after someone leaves and conflict between employees suddenly vying for the open position. If your family members are part of the business, your succession plan can even guide the next generation of owners.

Finally, a succession plan has the potential to improve your employees' performance today. That's because your top contenders will stay committed to your organization if they know they're lined up for a role and help future-proof your management team .

"Seeing a clear future with the company is a top driver of retention," says Caldwell. "Establishing and following through on development action plans make succession candidates feel challenged and engaged, which can help ensure they are emotionally committed to doing their best work." He adds, "These are your best people and would be very valuable to your competitors, so succession plans can help protect your most important asset!"

Key aspects to have in a business succession plan

Because every business needs a unique plan, there aren't pre-made blueprints. But you can take several common steps to ensure your business succession covers the major points:

• Identify priority roles. "In a world of finite time and resources, it's unlikely you can have a plan for all roles," says Caldwell. "Pick the ones that have the most significant impact on your business."
• Define what is needed for each role. Consider the required experiences, knowledge, skills and behaviors to succeed in the short and long term. Clarity is a key part of the succession planning process .
• Find possible succession candidates for each role. Look for up-and-coming leaders in your organization, external candidates and family members. Consider where they stand right now versus the position's ideal requirements and what training or skills they will need.
• Discuss career aspirations with your candidates. Ask about their future career goals and if they see themselves in these higher positions. Also, ask what they might need to grow into these roles.
• Set an action plan for developing future candidates. Think of the training, exposure, relationships or experiences that you can offer for these roles in the near term. For example, you could have the successor candidate fill the role temporarily while the current employee is out for a limited time.
• Estimate when transitions may occur. Consider when you or other leaders want to start stepping down. Your plan could include a gradual phase-out, where existing leaders adjust their roles to focus more on mentorship/coaching their successors.

Overcoming road bumps with business succession planning

While succession planning may sound straightforward enough as you line up your wants and wishes for your organization, some common challenges can get in your way.

Vague goals and requirements

You must be clear about each role's requirements and the steps needed to develop your employees. You also should be transparent with potential candidates about how you view their future and gauge their interests rather than making assumptions about what they want.

Missing leadership buy-in

"Many leaders don't like thinking about a future where they are no longer with the company," says Caldwell. "It can feel morbid or counterintuitive, and so they'll need to be sold on the value of doing so."

Lack of available talent

Developing future talent is a must because it cannot happen overnight. You and your HR team should also network with external candidates to build the pipeline of those who could be brought into the company. You can cut down on the time an open position goes unfilled. On top of skills, focus on the diversity of future talent pools and develop a broad spectrum of leaders from different backgrounds and experiences.

Conflict between future candidates

Improper or unclear plans can create unhealthy competition between your employees, leading to distrust and a lack of collaboration. That's why fostering open, honest dialogue about your plans is essential rather than leaving everyone guessing what's coming next.

Emergency loss of employees

Unfortunately, life can get in the way of your succession plan with the sudden departure, illness or death of a leader. Your succession plan should consider how your business would react to an emergency departure. You could also cross-train employees across several roles. You develop more people who can step up in a pinch, and you may uncover unknown employee talents and passions for a new position.

Tricky family relationships

Succession planning can have extra challenges for family business owners to navigate. In some cases, making decisions you think are good for the company can lead to hurt feelings.

"This situation can have heightened emotional dynamics given the personal relationships inside and especially outside of the workplace," Caldwell warns.

You may want to try to make sure your personal relationships don't hinder your objectivity in considering successor candidates. Also, it's a good idea to recognize communication breakdowns that create a lack of transparency in how you're making decisions. If you want to hand over your business to the next generation one day, a well-designed and clearly communicated succession plan is critical.

Where to get help with your business succession plan

Building a succession plan is not easy, especially if it's beyond the experience of anyone in your organization. Even if you feel comfortable with your plan, it still could help to reach out to a professional.

"Getting a third party's opinion can help mitigate the challenges, increase perceptions of fairness and lead to a smoother transition when the time comes," Caldwell says.

You can turn to HR professionals with a long history of experience in helping other small and mid-sized businesses. They can guide you about the essential questions to ask yourself and other stakeholders to shape your plans and the documents necessary to lock it down.

Consider the ADP Talent Management and Succession Management programs from an outside perspective. They can guide you through this important process.

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Office Technology | Ultimate Guide

Project Management: A Guide for Small Business

Published October 13, 2023

Published Oct 13, 2023

REVIEWED BY: Corey McCraw

WRITTEN BY: Sam Dadofalza

This article is part of a larger series on Project Management .

• 1 Project Management Life Cycle
• 2 Types of Project Management
• 3 Top Project Management Software at a Glance
• 4 Benefits of Using Project Management Software
• 5 Key Features of Project Management Software
• 6 Considerations When Choosing Project Management Software
• 7 Project Management Best Practices
• 8 Frequently Asked Questions (FAQs)
• 9 Bottom Line

Project management (PM) is the process of planning and managing a project to accomplish predetermined objectives. Projects vary, from mounting a launch event to developing new software solutions to anything else teams and businesses want to accomplish. In a nutshell, managing a project involves setting goals, identifying tasks, overseeing the progress, and guiding the team. It’s extremely useful for ensuring optimal team performance and controlling project constraints, risks, resources, and timelines.

Project Management Life Cycle

To better understand what is project management, you must be familiar with its life cycle, and the phases a project goes through from conception to completion. The Project Management Institute (PMI), the leading professional organization for PM, identified five phases in the Project Management Body of Knowledge (PMBOK) . Get a comprehensive project management overview by learning the following life cycle phases:

Project management life cycle

The initiation phase requires defining the project. It largely involves creating a project charter, a key document that outlines the project’s purpose, scope, stakeholders, and goals. It serves as the blueprint or guide for project success. In a nutshell, these are the project management essentials you must document in the initiation phase:

• Objectives: Identify what the project wants to achieve by laying down SMART goals: specific, measurable, achievable, relevant, and time-bound.
• Resources: Determine resources, such as budget and time constraints.
• Team: Acknowledge who’s part of the team and who does what.
• Stakeholders: Recognize the people who will be affected by the project and their needs.
• Scope: Identify the project’s boundaries, including the constraints that can negatively impact the project, timelines, and deliverables.

In the initiation phase, you essentially answer the “what” of the project. In this stage, you determine the “how,” outlining all the work that needs to be accomplished to achieve your goal. These are some of the types of plans prepared in the planning phase of project management for small businesses:

• Project plan: Include the project activities, schedule, and constraints. When plotting the schedule, use a Gantt chart , a type of bar chart that outlines tasks plotted against dates.
• Financial plan: Set a project budget and cost estimate with a breakdown of expenses per resource and department.
• Risk plan: Enumerate the possible issues and dependencies that will affect the completion of the project. Create a mitigation plan outlining your team’s actions to prevent or reduce the risks.
• Acceptance plan: Define the deliverables according to the customer’s requirements. It lists the milestones to be achieved and the standards for the customer accepting the output.

This is the phase where your team puts the plan into action. The most important aspect of execution is creating strategic workflows and maintaining transparent communication with everyone involved in the project to ensure that all stakeholders are aligned.

To streamline this process, maximize software solutions for project management for small businesses. These platforms feature Kanban boards, updates and discussion tools, and workflow automation, enabling you to assign tasks to relevant parties and communicate effectively with team members.

The execution phase happens alongside the monitoring phase. As you execute plans, you oversee the team’s performance and ensure that you’re able to produce deliverables within the given timeline and resources.

The most basic project management software solutions feature Gantt chart and workload views, which help you see if your progress is in line with the predetermined schedule and evaluate if each team member has the right amount of tasks at a given period.

This phase involves concluding activities, such as handing outputs to the client, terminating contracts, and evaluating the entire project. The assessment involves a meeting among all team members and sharing what they did well and what could have been done better.

The team must also create an impact report that outlines different metrics showing how the project affected stakeholders. The project closeout report lists the project’s achievements and the team’s learnings, which will serve as a reference for future projects.

Types of Project Management

The PM discipline doesn’t follow a one-size-fits-all approach. It largely depends on the type of project you’re working on. Here’s an overview of the different PM types and their respective best use cases:

Top Project Management Software at a Glance

PM software solutions help businesses improve productivity, increase collaboration and accountability among team members, and strategically allocate resources. Most platforms share the same task management features, but some have unique capabilities, making them suitable for specific business needs. Refer to the table below for our top-recommended PM software solutions:

Benefits of Using Project Management Software

A PM platform enables managers to improve processes from initiation to closing. It’s especially useful in the execution and monitoring phases, as it offers an excellent overview of all the moving parts of a project. These are some of the specific benefits you’ll get when you use a PM tool:

Simpler Project Planning & Scheduling

In the early stages of organizing projects, teams spend significant time identifying activities and plotting them against calendars. With the use of PM software solutions, you’ll be able to do away with these tasks, as the platform features different workflow templates, populated with tasks specific to different industries or business needs. This means you won’t have to build boards from scratch, facilitating easy and simple project management.

At the same time, these platforms have workflow automation tools, helping you manage updates in the project. They will automatically move tasks from one status to another and send notifications to relevant parties whenever there are developments in the workflow. Software solutions cover the basics of project management, so you’re able to focus on the actual work that needs to be accomplished.

Use monday.com board templates to get started on projects quickly. (Source: monday.com )

monday.com, one of the best PM software solutions in the market, offers over 200 workflow templates, removing the manual work of creating boards. The templates cover various business requirements, including marketing, sales and customer relationship management (CRM), software development, and product management. To learn more about this platform, read our comprehensive monday.com review .

Visit monday.com

Improved Team Collaboration

PM solutions make workspaces accessible to team members, with tasks readily visible to responsible parties. Users are able to exchange ideas right within the platform through different built-in collaboration tools, like chat, announcement bulletins, and whiteboards. Some solutions even have proofing and approvals features, expediting the process of sharing feedback and making approvals on different documents.

On top of these, most solutions work with a wide variety of third-party integrations, including video conferencing tools. Without ever leaving the platform, you’ll be able to meet team members in a virtual meeting.

Chat with colleagues via Basecamp’s Campfire feature. (Source: Basecamp )

Basecamp is a great PM solution for team collaboration, as it’s one of the few tools with a built-in chat feature. Campfire lets users send messages in real time, supporting @mentions, file attachments, and emojis. The platform features automatic check-ins, a page where team members share what they’re working on for today or the week. Basecamp also has announcements, enabling managers to broadcast updates and reminders quickly.

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Centralized Information

With PM software solutions, you’re able to keep all project-related information in one place. Upload relevant documents within task cards for easy reference. Edit documents right within the platform without downloading the files. Different tools offer varying maximum file storage sizes, but some feature unlimited storage. This is especially helpful if you’re dealing with several documents and collaterals for your project.

Smartsheet integrates with Brandfolder, allowing users to access all project-related content in one place. (Source: Smartsheet )

PM software Smartsheet integrates with Brandfolder, a digital asset management platform that allows users to refer to a single virtual hub for all project documents. Aside from making relevant files accessible, this integration lets you publish proofed content and attach assets to a workflow sheet, facilitating a seamless workflow. On top of this, Smartsheet offers unlimited file storage in its most expensive subscription plan.

Visit Smartsheet

Strategic Resource Management

Project success heavily relies on managing people, finances, and tools wisely. When these elements are allocated right, the project is delivered on time and with reduced costs. The benefit of using PM software is that it has built-in resource scheduling and management capabilities, helping you ensure that employees have the right amount of work for a given period and that you stay within the proposed budget.

Improve resource planning with Wrike. (Source: Wrike )

Wrike offers resource management capabilities, enabling managers to improve resource planning, forecast staffing demand, and distribute tasks according to employees’ expertise and availability. It has time tracking, offering insights as to how long people work on specific tasks, which in turn helps you set realistic timelines. Use its budgeting tool to create a cost estimate based on team member rates.

Visit Wrike

Data-driven Work Insights

With the reporting and analytics tools readily available in PM software solutions, you’ll get meaningful insights about your team’s performance and make adjustments as you progress through the project. The charts display different types of data, including the number of upcoming weekly tasks by assignee, the number of incomplete tasks, and the number of projects by status.

Use Asana’s preset charts to uncover meaningful project insights. (Source: Asana )

Asana has a powerful reporting and analytics tool that enables users to gauge team performance better. Maximize its chart presets to get started quickly on evaluating work progress. The presets include the number of projects by status, this month’s tasks by project, and projects by owner. To make data easily digestible, the platform offers different types of charts: column, line, donut, and burnup.

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Key Features of Project Management Software

PM tools offer a wide range of tools designed to promote easy monitoring of task progress and collaboration among team members. Here are some of the common capabilities you’ll find on several platforms:

• Project planning: Project overviews and briefs allow you to define what the project is about and what it aims to achieve.
• Project views: Oversee project activities in various ways: list, Kanban board, timeline, and calendar views.
• Team collaboration: The discussion feature within task cards lets users share ideas and feedback about the assigned to-dos. Meanwhile, the updates section outlines the latest developments in the workflow. Some platforms feature instant messaging and video recording.
• File storage: Upload different kinds of documents and embed them in task cards for easy reference. Storage sizes vary from one provider to another, with some offering unlimited storage.
• Proofing and approvals: Review uploaded files and provide feedback directly on the document. Tag assets that have passed quality standards as approved.
• Reporting and analytics dashboards: Uncover workflow and performance insights from the data gathered by the software solution and adjust your strategies for completing tasks.
• Resource management: Use the resources view and workload charts to see how resources are distributed across different tasks. Adjust workforce scheduling, if necessary.
• Time and budget tracking: Maximize time tracking to learn how much time team members spend on individual tasks. Monitor the budget by keying in the costs for labor and materials involved in the project.
• Third-party integrations: Connect the platform with third-party apps, like instant messaging, video conferencing, and customer relationship management (CRM) tools.

Considerations When Choosing Project Management Software

While PM software solutions are extremely helpful, not all platforms are created equal. For this reason, it’s important to know what to consider when choosing a tool for your project. Here are the most important factors to take into account when looking for a platform:

• Pricing: The best solution is the one that fits within your budget. The majority of vendors follow a per-user pricing scheme, while others have flat-rate pricing. Some offer discounts for annual billing. Take these into consideration when comparing different subscription rates from various providers.
• Features: Your choice of solution must align with the type of project you have and accommodate your business’ pain points. For example, if you struggle to provide updates to stakeholders, it’s wise to choose a platform with built-in chats or announcement bulletins. Maximize the vendors’ free plans or free trials to determine if the solution accommodates your needs.
• Ease of use: The ideal platform is easy to navigate, even for those who are new to the PM software. It must have little to no learning curve, so users won’t have to spend a significant amount of time being familiar with it and lose precious time for actual work.
• Reliability: Some PM solutions offer an uptime guarantee. Check the service level agreement (SLA) to ensure you’ll have fewer incidents of downtime.
• Security: Learn how the platform handles data and keeps your information safe. At a minimum, it must encrypt data both in-transit and at-rest . Check the provider’s data security certifications.

Project Management Best Practices

As you use excellent software solutions to oversee project activities efficiently, apply project management best practices. The following tactics are effective in keeping projects in check:

Always Begin With the Charter

Start every project right by developing the project charter, a document that provides the overview of the project. It’s easier to qualify activities, identify resources, and define success metrics when you have a clear understanding of what the project is all about. In the project brief, you must document the following: name and description of the project, client, objectives, scope, deliverables, key performance indicators, budget, and timeline.

Communicate Clearly

Projects often get delayed or deviate from their purpose because of misaligned expectations, missing updates, and overlooked notes for improvement. This is why, from the start and throughout the project, you must strive for effective communication, following these simple habits:

• Conduct regular meetings and document the discussion
• Keep all discussions in one platform
• Provide clear instructions about tasks
• Set up a simple review and approval process
• Resolve conflicts and issues right away

Prepare a Contingency Plan

Identify all the risks involved in the project to create a more strategic contingency plan. Risks can be in the form of exceeding the planned budget, team members’ productivity tanking, or the management introducing new processes you must be familiar with. To reduce the negative impact of these risks, you must plan for appropriate responses for each of them.

Monitor Progress Regularly

Monitoring is critical to ensure your project is on track to finish on time and within the planned budget. When you regularly evaluate progress, you’ll be able to spot bottlenecks and misallocated resources quickly and adjust processes to keep your project in line. Identify high- and low-performing team members and strategize how to improve morale and productivity.

Update Project Documents

When you’re busy with a lot of things, the tedious work of keeping documents updated tends to be put on the back burner. However, this will backfire on you at the closing phase when you need to submit all documentation.

You’ll be overwhelmed with so many papers to arrange and developments and changes to remember before handing off the project to the client. That said, as you progress through the project, update your documents, especially the project schedule, expenses, change requests, and issues log.

Frequently Asked Questions (FAQs)

What is the most commonly used project management tool.

According to a 2023 report by Zion Market Research, the most dominant PM software solutions globally are Asana, monday.com, Smartsheet, Trello, and Wrike.

What is the difference between CRM & PM software?

CRM solutions help businesses manage interactions with customers and potential customers. PM software enables teams to monitor project activities along with the associated budgets and timelines.

What is the ISO standard for project management?

ISO 21500:2012 is the international standard for PM, offering an overview of the concepts and processes essential to handling projects effectively. The guidelines apply to any type of organization, including public, private, or community.

Bottom Line

The PM life cycle goes through five phases: initiation, planning, execution, monitoring, and closing. Since projects vary in requirements, project managers use different approaches to handling projects, from Kanban and Agile to the traditional waterfall.

With the use of software solutions and project management best practices, teams reap various benefits, including a more effective project plan and accurate schedule, better team collaboration, and strategic resource allocation. Sign up for the forever-free versions of different platforms and see which suits your business requirements.

About the Author

Sam Dadofalza

Sam is an office tech writer at Fit Small Business, covering various topics including virtual phone systems, contact center platforms, and unified communications tools. She produced content for the digital marketing campaigns of small businesses from different industries and countries, including the United States, United Kingdom, Singapore, and the Philippines.

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Tax changes small business owners should be aware of as the tax deadline looms

FILE - A cash register is seen on the front counter at the Alpha Shoe Repair Corp., Feb. 3, 2023, in New York. As Tax Day, April 15, approaches, there are plenty of things small business owners should keep in mind when filing taxes this year. (AP Photo/Mary Altaffer, File)

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As Tax Day approaches, there are plenty of things small business owners should keep in mind when filing taxes this year.

April 15 is still the annual tax deadline for many small businesses although, unlike individuals, small businesses can have varying deadlines depending on the type of company, the state the taxes are filed in, and other factors. Quarterly estimated tax payments are generally required throughout the year. And certain types of small businesses had to file by March 15.

Since business tax filing is complex, most experts recommend small business owners work with a professional tax adviser rather than trying to file on their own or even with tax-filing software.

“Taxes should not be scary, especially when you have a certified tax professional or someone who is your trusted adviser,” said Amber Kellogg, vice president of affiliate origination and management at business consultancy Occams Advisory. “I always say you don’t go to the dentist to get your oil changed, and you certainly shouldn’t do (taxes) yourself unless you’re an expert.”

But even if small business owners aren’t filing taxes themselves, it’s still important to stay informed about any tax changes during the year. Here are things small business owners should consider as the April 15 deadline looms.

Consider an extension

Because of some pending tax legislation in Congress this year, Mitch Gerstein, senior tax adviser at accounting firm Isdaner & Co., said it might be a good idea to file for an extension. When you file an extension you still pay estimated taxes, but final paperwork isn’t due until September.

This gives your tax provider adequate time to file a return. And it’s cheaper to file an extension than an amended return, which costs more in administrative fees.

One reason Gerstein recommends an extension this year: a bonus depreciation write-off used by many small businesses is set to decrease for 2023. The bonus depreciation allowance was designed to spur capital purchases and it let businesses write off 100% of certain new and used assets in 2022. But beginning in 2023, that will decrease to 80% for used assets, dropping another 20% each year thereafter. However, a tax bill pending in Congress could restore the write-off to 100%. It’s rare that there is such a significant tax bill pending in Congress when taxes are due, Gerstein said.

Optimize your retirement plan

The Secure Act 2.0 passed by Congress in late 2022 gives small businesses some tax advantages if they offer a retirement plan. There’s a tax credit for small businesses starting new employee plans. The credit is up to 100% of the startup costs for adopting and maintaining a new 401(k) plan, capped at $5,000. There’s also a tax credit based on employer contribution, up to $1,000 annually per employee, over the plan’s first five years.

Changes in research and development write-offs

Scott Orn, chief operating officer of Kruze Consulting, works with startups backed by venture capital. Orn said the number one concern his clients are calling about is “Section 174,” a part of the tax code that involves writing off research and development costs.

In the past, companies were able to deduct 100% of research and development expenses from their taxable income. That was helpful because often that deduction meant the company was operating at a loss and wouldn’t have to pay taxes.

But starting in 2022 due to new legislation, companies have had to “capitalize” the expense – or spread it out over several years. That means they must now write off the expenses over five years for U.S.-based R&D, or 15 years for foreign R&D expenses.

Large and small companies alike are affected by the change, but small businesses are hurt the most, Orn said.

“(Small businesses) are the ones who are swinging into profit where they thought they were like safely losing money and not ever going to pay taxes for a while,” Orn said. “And that’s why it’s such a big surprise for them. It’s hurting people, it’s like it’s a lot of money these companies don’t have.”

Avoid underpayment penalties

Yet another reason for small business owners to use a tax professional is the fact that underpaying will cost more this year. In the past, underpayment penalties hovered at around 3%, but this year they’re more than double at 8% . That’s because the penalties are based on the federal short term interest rate plus three points, said Danny Castro, Florida Market Tax Leader at BDO USA, part of BDO Global, a global accounting network.

“The cost of underpayment is as high as it’s been in a long time,” he said.

One credit to skip: the ERC

At one time, the pandemic-era Employee Retention Credit seemed like a boon for small businesses. Designed to help small businesses keep employees during pandemic-era shutdowns, the generous credit let businesses file amended tax returns to claim the credit.

But that led to a cottage industry of scammers trying to entice small businesses to help them file for the credit – for a fee – even if they didn’t qualify. The IRS has launched several initiatives to claw back some money improperly given to businesses. To date, the IRS said 500 taxpayers have given back $225 million via a voluntary disclosure program, which ended on March 22, that let small businesses who thought they received the credit in error give back the money and keep 20%. And 1,800 businesses have withdrawn unprocessed claims totaling $251 million.

Get organized, stay organized

The best thing small businesses can do to help their tax advisers file their taxes is stay organized. A shoe box full of receipts isn’t helpful when trying to file timely taxes. Owners should log receipts in an orderly database they can turn over to their adviser. And stay on top of quarterly estimated payments.

“(Small business owners) need to be able to keep accurate records throughout the year and not have to go back in April and go, gosh, what what was this receipt for,” said Occams Advisory’s Amber Kellogg, “Keeping those, accurate records is very, very important.”

This story has been corrected to show that BDO USA is part of BDO Global, not BBO Global.

The governor's changes would effectively ban skill games in Virginia, small business owners fear

RICHMOND, Va. (AP) — Virginia Gov. Glenn Youngkin has proposed a rewrite of legislation intended to legalize and tax skill games, adding stiff new restrictions that industry supporters argued would still amount to a de facto ban of the slots-like gambling machines hosted by small businesses.

The governor put forward amendments late Monday that overhaul a measure the General Assembly sent him in March, calling for a higher tax rate on the receipts from the machines, and a provision allowing localities to prohibit them.

The proposed changes also add placement restrictions on the arcade-style games, banning them within about a half-mile of churches, daycares, and houses of worship, and seemingly excluding them in many metro areas that already host a gambling establishment.

While skill-games supporters vowed to fight the proposed changes, Youngkin spokesman Christian Martinez said in a statement that “the added protections” the governor is seeking address “serious concerns with the regulatory structure, tax rates, the number of machines, impact on the Virginia Lottery and broader public safety implications” of the legislation.

Other Youngkin Actions

The skill-games bill was one of dozens Youngkin took action on late Monday, as he ran up against a deadline to complete work on measures sent to his desk during the regular session that ended March 9.

The governor, a Republican, vetoed measures that would have set up a prescription drug affordability board and allowed all localities to hold a referendum on raising sales taxes to help fund school construction.

He amended a Democratic priority measure that aimed to protect the right to access contraception in a way supporters said gutted its intent.

And he signed off on measures expanding the state's revenge porn law and establishing 18 as the minimum age for marriage.

Of the 1,046 bills sent to him this year by the Democratic-controlled General Assembly, he signed a total of 777, amended 116 — including the state budget — and vetoed 153, his office said.

Youngkin has vetoed more bills this year alone than any of his seven immediate predecessors did over their entire four-year terms, according to an accounting by the nonpartisan Virginia Public Access Project.

Lawmakers will reconvene in Richmond next week to consider his amendments.

They could also attempt to override his vetoes, though Democrats would need Republicans to join with them to reach the necessary 2/3 vote threshold.

Skill games debate = a rare issue

The skill games debate is a rare issue that has not fallen along partisan lines.

A coalition formed to push for legalization this year centered the voices of the small-business owners who hosted the machines in establishments like gas stations and restaurants and shared in their profits before a ban first passed in 2020 took effect.

Rich Kelly, a restaurant owner and the president of the coalition, said in a statement Monday that Youngkin's amendments were “devastating” and would effectively ban the machines by prohibiting them within 35 miles of any casino, racetrack, or gambling “satellite facility.”

Virginia has casinos in Bristol, Danville, and Portsmouth, and allows wagers on live horse races and another form of slots-like betting in historical horse race wagering parlors around the state.

Youngkin's proposed tax rate — 35% according to the governor's office — would also make skill games the highest taxed good in Virginia, Kelly said.

For years, policymakers in Virginia and around the country have been grappling with how to regulate the machines, which look similar to slot machines but involve an element of skill, their manufacturers say. Virginia lawmakers first voted to ban skill games in 2020 as they were opening the door to casinos.

Operators got a reprieve after then-Gov. Ralph Northam asked lawmakers to delay the ban by a year and instead tax the machines and use the revenue for COVID-19 relief.

The ban took effect in July 2021 but was challenged in court and put on hold for a while amid that fight.

Bill sponsor Aaron Rouse, a Democratic senator from Virginia Beach, said in a statement that he would work to block Youngkin's amendments and “do everything possible to make the interests of small businesses – not casinos or massive out-of-state corporations – a priority.”

A coalition opposing skill game legalization that counts the state's casinos among its members said in a statement that it was still reviewing the amendments but it appreciated the governor's “more thoughtful approach” to a measure that would have “led to an unprecedented expansion of gambling in Virginia.”

If both legislative chambers agree to Youngkin’s entire set of amendments when they meet next week, the bill as amended would become law.

If lawmakers only accept certain amendments, the bill would be returned to Youngkin, who could either sign or veto it.

In other action late Monday, Youngkin approved a pair of mental health reform bills that stemmed from the death of Irvo Otieno, a 28-year-old Black man whose death last year while in custody at a state mental hospital sparked outrage and led to both legal charges and a wrongful death settlement.

Youngkin also sought amendments to two pieces of legislation that touch on organizations related to the Confederacy in a way that means lawmakers would have to approve them again next year before they could take effect. One of the bills would have ended a tax perk currently enjoyed by the United Daughters of the Confederacy, and the other would have ended the issuance of special license plates honoring Robert E. Lee and the Sons of Confederate Veterans.

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Airbus facing upfront costs to support jet output increase

Airbus is incurring up-front costs as it prepares for higher jet production and plans a breathing space to absorb them once it reaches its output goal, its finance chief said on Wednesday.

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