The line between good strategic planning and bad strategic planning is a fine one. For small businesses, having these strategies in place becomes even more important for their success. Here are a few tips on how you can create a strategy for your small business.
1. Define the organization and assign duties
The first thing you need to do when starting a new small business is to define the organization and establish the chain of command. Then you need to define each employee’s duty and authority. For small businesses with limited manpower, this kind of a structure would help avoid conflicts and boost productivity.
2. Create realistic goals
Creating realistic goals is an aspect of strategic planning that most new small businesses don’t factor in when they first start. If you don’t know what goals you should realistically aim for, you would need to do some research on it. with a realistic goal in mind, you’d be able to better judge your business’ performance, establish how long it should take to reach milestones and what numbers you should be happy with within the first 1-3 years of your business’ start.
3. Monitor performance
Whether you have an established business or are just getting started, you need to put in an effective and fair system to monitor the performance of employees. This really needs to be one of the core aspects of your business strategy since chinks in your manpower armor can actually undo all your clever planning. Monitoring performance will help you identify employees who have done well and let go of the ones that are underperforming consistently.
4. Chart progress and adjust goals
Unless you have an effective system that allows you to chart progress, you would not really be able to gauge your actual performance. Visual reminders are great at monitoring progress and these can be created using basic craft supplies too. The key here is to know exactly and realistically where your business is at right now as it would play a key role in helping you judge the result of your existing strategies. This would also help you adjust your goals for the future and eliminate problematic strategies before they deal a severe blow to your business.
5. Celebrate success
For small businesses, it is vital to celebrate every reached milestone and semi-major success since they may not always have the resources to provide other kind of incentives to employees. Celebrating success and goals reached also helps the business track how far it has come, remember how it got there and realize how far it still has to go.