The term “strategic planning” gets thrown around a lot, often referring to time spent setting long-term goals and creating a to-do list. If you can tell me your one-, three-, and five-year goals, you're off to a good start. But strategic planning is far more nuanced than that.

(Still need to work on goal-setting? Start here then come back to this article to build your strategic plan.)

A strong business strategy isn’t just about dreaming big and using hypothetical frameworks to reach your goals; it’s about designing a plan that allows your business to thrive despite downturns by looking at all of the data, identifying highs and lows, and anticipating challenges. It’s stepping out of the day-to-day operations and looking at the big picture, preparing for executive decisions you will have to make during the good years and the bad.

You might be thinking, of course I need a strategic plan that’s tailored to my goals, business, and environment. But how do I build it?

As someone who has spent much of her career on feasibility studies, modeling, and data analysis, I’ve seen firsthand how even the most passionate business owners struggle to interpret data and turn insights into action. It’s not an easy or intuitive process, but it’s an important one for the longevity of your business.

So let’s talk about a few ways to get started.  

Gather Data to Gain Insight

First, identify the most important metrics for determining the health of your business. Your Profit & Loss (P&L) Statement is where I like to start.

• Have you recently reviewed your P&L? What did it say?
• Do you have your finances organized enough to run a P&L? Software like QuickBooks can run a report (if your data is accurate) or your bookkeeper should be able to send you one. 
• Look at your P&Ls over the last three years. Has your profitability improved? What has changed and why?
• What areas of the business need deeper analysis and improvement this year?
• How far off are you from hitting your targets this year? Do you know what your targets are?

Next, examine your sales performance. 

• Where do leads get stuck (aka don’t buy from you) and why? 
• What lead sources are the most successful? Which ones have not worked so far and why do you think that is?
• At your current price point, how many sales do you need each quarter, month, week, and day to hit your targets?

Look at your market and evaluate your performance within it. 

• What share of the market are you capturing?
• With your capacity, how much more of the market could you serve and what would that mean financially?
• How does your revenue, production, sales, commissions, etc. compare to your peers?
• What conversion rates should you expect in this industry and area, and how do your results compare to those benchmarks? A simple Google search can give you some ranges.

Remember that correlation does not always mean causation. But this exercise allows you to find key insights and trends that can help you shape your action plan.

Turn Insights Into Action

Okay, you have your goals. You know your numbers and benchmarks. Let’s build a data-driven plan to bridge the gap. Grab a notebook (or open a document) and start writing out a plan.

Some prompts that will help you turn your insights into action:

• What led to these results? Which actions or lack of action?
• What do you need to start or stop doing to be successful and efficient?
  
  • More phone calls? 
  • Better contractors for fulfillment? 
  • Fewer expenses?
  • Higher prices?
  • Broader network?
• What could go wrong? How do you mitigate those risks? How would each scenario affect the bottom line?
• What in your life would stand in the way of you getting this done? How do you adjust the plan or overcome the obstacles?

Next, let’s organize these notes you just captured.

1. Highlight 2-3 actions that would move you closer to your one-year goal. 
2. Break those down into individual tasks with deadlines. (Be realistic in what can be achieved in that timeframe.)
3. Delegate tasks when possible, giving clear instructions and deadlines.
4. Schedule your own tasks. 
5. Measure progress at consistent intervals. (Use the metrics you already examined to audit your business and capture results. We like quarterly here at LVL-Up.)

Get Expert Guidance

For small businesses that ebb and flow with the market, understanding what is happening beneath the surface is critical for creating an effective strategic plan. 

Still not sure how to turn your business numbers into actionable insights? Book a one-on-one strategic planning session with me to get clarity on your next steps.