How to Write a Stategic Business Plan

A solid business plan is straightforward.

A strategic business plan is defined as a plan that expresses objectives and the allocation of resources. A solid business plan is straightforward; it sets priorities and identifies specific company goals. It also prepares for the unexpected, as well as potential market opportunity. A good business plan is a critical aspect of securing financing. Both new and existing companies require a strategic business plan in order to optimize profitability.

Things You'll Need

• mission statement
• financial statements

Instructions

1. Describe your company and the product or service you provide. Include a timeline of the company's history. Include an overview of the management team. Define your target customer, your competition and possible risks that may lie ahead.

2. Create an executive summary. An executive summary previews the main points of a strategic business plan. Include a company mission statement. Make your mission statement a concise paragraph that clearly states the purpose of your organization. In "Mission Statements," John Graham and Wendy Havlick state that including input from key employees when devising a strategic mission statement is important.

3. Describe in detail your product or service. Lay out how you will create and deliver an exceptional product. Provide an overview of expenses associated with production and delivery. Include your supply line and trading partners.

4. Include recent developments in your industry, as well as competitive intelligence. This is a list of your competitors, their strengths and weaknesses and an analysis of their product line. All Business recommends that you also list indirect and future competitors in this section.

5. Provide an overview of your market and the need for your service. Include analysis of customer needs and demographics, and how your marketing is geared towards their buying habits. Include a marketing plan complete with your advertising strategy and budget.

6. List a financial plan that contains profit and loss statements, cash, balance sheet and break-even analysis. Provide information on your projected revenue and expenses. Being strategic in a business plan includes continually updating your business plan, as well.

Tips & Warnings

• The Center for Business Planning suggests reviewing existing business plans prior to writing your own.

References

• "Mission Statements"; John W. Graham and Wendy Havlick; 1994
• All Business: Make Your Competitive Analysis Stand Out
• Center For Business Plans