Strategic and Business Planning

Strategic plans and business plans can be substantially different. Every business needs a strategic plan, even if it is simply in the mind of the owner. A strategic plan describes the business you are in and how you compete. In large businesses, strategic plans tend to be formal and may require significant amounts of work each year, perhaps from a dedicated staff, and usually with input from every division and/or department. Strategic plans in large companies tend to involve some or all of the following:

• competitive analysis
• SWOT analysis (strengths, weaknesses, opportunities and threats)
• competitive asset analysis
• environmental analysis
• microeconomic analysis

In smaller businesses, strategic plans tend to be less formal, but they still play the critical role of defining the basis upon which the business competes, which should derive directly from the business' strengths and competitive situation.

A business plan typically serves one of two purposes. Most often, it is used to raise money. In some cases, it is used as a roadmap-a guide for the staff that ensures that each employee understands where the business is going and how and when it will get there. Business plans tend to follow a prescribed outline and address all functional areas, risks, and key individuals involved. Strong business plans include projected financial statements based on defined assumptions that the reader may manipulate in a spreadsheet to see how outcomes change when assumptions change.

Newcastle Consulting Group can work with your business to create or sharpen your strategic plan and/or your business plan. Contact us today to discuss your planning needs.