St.

Paul University Surigao

St. Paul University System
Cor. San Nicolas & Rizal Street
Surigao City

GINO, Ma. Carmela D. Entrepreneurial Mind

BSA – 202 Block 4

The Strategic Planning for Small Businesses

Do-It-Yourself Activity:
1. What is strategic planning? It is applicable to small business?
Strategic planning is a process used by organizations to identify their goals, the strategies
necessary to accomplish those goals and the internal performance management system that will
be used to monitor and evaluate progress. Most organizations use a SWOT or gap analysis to
identify the underlying factors driving their current performance. This, in turn, informs the
selection of the most high-leverage strategies to create change. The strategic planning process
culminates in the development of a strategic plan document that serves as the organization’s
collective roadmap.

Yes, strategic planning is applicable not only for larger companies but also in small
businesses. Whatever the size of your company and whatever your industry, a strategic plan
can provide direction to guide your decisions as you grow, keeping you on course to achieve
your long-term objectives and ensuring that your business always operates in a way that is
consistent with the company’s mission, vision and values.

2. Why is the mission statement is to be made? What are its concerns?

A mission statement outlines a startup's underlying motivation for being in business. It spells
out the contribution to society that the organization aspires to make. The mission statement is
not a strategic objective, but rather the basis on which the strategic objectives and strategic
plan are developed.

3. What is the meaning of strategy?

A strategy in business is the means by which an organization sets out to achieve its
desired objectives. It can simply be described as long-term business planning. A business
strategy is a set of guiding principles that, when communicated and adopted in the organization,
generates a desired pattern of decision making. It is therefore about how people throughout the
organization should make decisions and allocate resources in order accomplish key objectives.
A good strategy provides a clear roadmap, consisting of a set of guiding principles or rules, that
defines the actions people in the business should take (and not take) and the things they should
prioritize (and not prioritize) to achieve desired goals.

4. What is meant by the firms strengths and opportunities?

A firm's strengths are its resources and capabilities that can be used as a basis for developing a
competitive advantage. Examples of such strengths include: patents. strong brand names. good
reputation among customers. Opportunities are a combination of different circumstances at a
given time that offer a positive outcome, if taken advantage of.

5. What activities are required to implement strategies?

The basic activities in strategy implementation involve the following: Establishment of
annual objectives, formulation of policies for execution of strategies, allocation of resources,
 actual performance of tasks and activities and leading and controlling the performance of
activities or tactics in various levels of the organization.

6. What basic strategies are necessary for small business? And why it is necessary?
 Business Plan
Every business needs a business plan. It doesn’t have to be formal or in a particular
format (if you’re not seeking outside funding) but every business should have a plan for
what you hope to achieve, and how you will achieve it in the next 12 months. It should
be written out and clearly communicated to all the important players in the business.

 Clear customer value proposition

A value proposition is not just the value you intend to deliver, but also your customers’
belief about how that value will be delivered, experienced and acquired.

 Competitor Analysis
Many businesses believe they are too small to need to invest in any kind of strategic
analysis, but I say you are never too small to know what your competitors are
doing. This sort of analysis doesn’t have to be an expensive big data project, as you can
conduct it simply with Google and a curious disposition.

 Positive Cash Flow

Devise a strategy that will make it easy to get paid promptly, no matter who you work
with. And then be careful not to extend yourself beyond your liquid cash limits.

 Strong Marketing Plan

Do some research into which one or two marketing platforms will be the most beneficial
for your particular business and commit to them. For example, you might try social
media marketing, content marketing, in-person networking, direct mail, or paid
advertising. Don’t overextend yourself trying to do everything at once.