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How long should I be developing a strategy for? My business is relatively new.
I created a very short basic business plan for my business and I only considered the next 12 months strategy in detail. Is it short sighted to not plan further, I don’t know how to plan for longer than the next 6 months in my head and have already stretched it to 12 months from what feels like thumb sucking figures and ideas. How do I get to what feels realistic and achievable and how long should I actually be planning strategy for?
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1 Reply
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Hi Anxiety Free Revolution. This is such a big question for startups, especially with a lot of even reputable businessmen saying that a business plan is not even necessary anymore. So from actually starting, sometimes a full business plan is not necessary if you have covered the basics of having the right mindset, the right product, with the right price, correct costing and more than 1 customer to buy it.
BUT for the business to grow it takes more than luck, so It’s not uncommon for early-stage businesses to focus on short-term planning, especially when the market environment is uncertain or rapidly changing. However, while a detailed 12-month plan is crucial for immediate actions, it is also important to have a longer-term vision to guide your strategic decisions and resource allocation.
To bridge the gap between short-term planning and long-term strategy, consider adopting a rolling planning approach. This method involves continuously updating your 12-month plan every quarter or six months, allowing you to adjust based on real-time data and market conditions.
To develop realistic and achievable goals, start by analyzing historical data, industry benchmarks, and market trends specific to your business. Use scenario planning to anticipate potential challenges and opportunities. Additionally, involve key team members or advisors in setting measurable targets that align with your broader business objectives.
Ideally, your strategy should encompass a three to five-year horizon with varying levels of detail: the first year being highly detailed, the next one or two years with clear objectives, and the final years focusing on broader strategic goals. This balanced approach allows you to remain agile while ensuring you are working towards long-term success.
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