The Fundamental Flaw in Small Business Strategy: Overlooking the Importance of Strategic Planning

As someone who has navigated the turbulent waters of entrepreneurship and witnessed the rise and fall of numerous businesses, I’ve observed a recurring theme that leads to the downfall of many small businesses. An astonishing 85% of small businesses fail, and from my experience, the root cause is often a lack of strategic planning.

Many entrepreneurs jump directly into the operational aspects of their business, with a particular focus on marketing. They pour resources into marketing campaigns, believing that visibility and customer acquisition are their primary hurdles. However, this approach is putting the cart before the horse. Effective marketing cannot exist in a vacuum; it must be the offspring of sound strategic planning.

A strategic plan acts as a roadmap for your business. It outlines your business goals, the strategies to achieve them, the metrics for measuring success, and the contingencies to address potential pitfalls. Without this roadmap, even the most creative and resource-intensive marketing efforts can go astray because they lack direction and purpose.

The misconception that marketing is a panacea for all business challenges leads many business owners to overlook the foundational step of crafting a strategic plan. Marketing strategies should be designed to support the broader business objectives, not the other way around. Without understanding the market, the competition, and the internal capabilities of your business, you cannot hope to implement a marketing strategy that effectively contributes to your business’s success.

If you’re unsure about how to differentiate between a marketing plan and a strategic plan, or if you find the process of strategic planning daunting, it is wise to consider hiring a business consultant. A consultant can provide the necessary guidance and expertise to help you create a robust strategic plan, ensuring that your marketing efforts are both effective and aligned with your overall business goals. Remember, a well-thought-out strategic plan is not just a luxury—it’s a necessity for surviving and thriving in the competitive business landscape. Connect with me here today and learn how a strategic plan may turnaround your business failures. 

 Written by Darlene M. Ziebell