Business owners need to know the five basic elements of a strategic business plan.
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A strategic business plan is a step-by-step guide a business puts in writing to achieve its business goals and objectives. The five primary elements of the plan are the company vision, mission statement, critical success factors, strategies and actions for objectives, and a prioritized implementation timeline.
Write down the business vision. This is a statement that includes the purpose, goals and values of the business. It’s typically a one- to two-sentence statement. For example, a vision for a medical center may be “Med XYZ will be a recognized leader in health care quality.”
Write the mission statement for the business. This is a brief, two- to three-sentence description of the business, including what type of business it is and how you plan to meet the needs of your target market by offering the products or services of your business. For example, a mission statement for a restaurant may be “to ensure that each patron receives prompt and professional service by serving nutritional and well-prepared meals at affordable prices.”
Related Reading: Definition of a Successful Strategic Business Plan
List the critical success factors the business must meet to achieve its vision and mission. Critical success factors can vary from business to business, but some examples include achieving credibility in the industry; a business financial plan that ensures a positive cash flow and sufficient revenue to grow the business; conducting market research to meet customers’ needs and desires; and a process for documenting company policies and procedures for training employees.