Your Strategic Plan is Your Business’s GPS

A strategic plan is a critical part of business development. Writing a plan means committing your business values, mission, goals, plans, and vision to paper – documenting your guiding principles.

A well-thought-out strategic plan looks at the history of the business and its current state and then defines a plan for growth. Your plan should map out your path to success and guide you and your employees through any challenges, ultimately delivering you to your goal. You could say a strategic plan is the GPS that directs your business.

However, many companies don’t look far enough ahead to plan for challenges down the road. Most don’t look beyond a single year at a time. That’s like traveling one step at a time without knowing your destination. If you don’t look ahead, on the road or in business, how can you plan for roadblocks or detours? How do you prepare to hand over the keys if you want to sell, or retire? And what about emergencies? Who’s driving when you can’t? Your plan should cover all those questions, and more.

Your strategic plan should include short- and long-term planning to guide your business to reach its potential now – and later.

An Exit Plan is Critical

According to a 2018 UBS report, 48% of business owners do not have a formal exit strategy in place. How do they achieve their end goals for the company without planning? They likely won’t. In business, failing to plan often means planning to fail. Without an exit strategy, most business owners who hope to sell their business won’t be successful. In fact, only 20-30% of businesses even sell. Is your plan to be in the 20-30% that sell? Or will you be in the 70% that doesn’t?

Many business owners don’t think about an exit strategy until they feel ready to move on. At that point, they may have already missed opportunities to get more value out of their company.

It’s critical to plan for both expected and unexpected exits:

Expected – goals with retirement or selling in mind

A planned exit can be a long-term process or a quick deal. Maybe you’ll make a plan to sell in ten years, or outline the steps needed if you receive an offer before then. Either way, the closer you get to the end, the harder it can be to see the best way out. Failing to plan may mean you have less control over the outcome and achieve less than optimal results.

Unexpected – we can’t schedule the unexpected, but we can prepare for it

Few business owners would have predicted a pandemic in 2020. But savvy business owners may have planned for contingencies such as supply line interruptions or workforce shortages. Pandemics, natural disasters, rent or location events, or the unexpected loss of life – these are things we don’t want to think about. But if you don’t think about them, and the unthinkable happens, how will your business hold up?

How do You Benefit From a Carefully Planned Exit Strategy?

Planning minimizes the element of surprise:

  • Planned exits have better results than unexpected exits
  • You’re better able to meet unexpected problems head-on (health or family, for example), without added stress
  • You’ll have steps in place in case of unexpected offers
  • You’ll be able to liquidate faster, if needed
  • You’ll be ready for retirement, personal time off, or if you’re simply ready to move on

Including an exit strategy when you write your strategic plan ensures you’ve taken the right steps toward success, left less to chance, and are prepared to make informed, rational decisions when or if the time comes that you need the exit strategy. You won’t be rushed – won’t be as likely to make decisions based on emotions, under stress. Instead, you will execute a thoughtfully formed plan.

Not sure where to start?

David is an accomplished and experienced business professional who brings over 40 years of insight to the table. As a business coach, he specializes in helping business owners prioritize their business needs, identify areas of improvement to support those needs, and lead their business to its greatest potential. He can help you plan for the future of your company.

It all starts with a single, free conversation. Call 734-726-5208 today for a free coaching session or contact David through the website. In today’s world, you need to be ready for anything.