A strategic plan is used for executing and running the strategic direction of your existing business. Whereas a business plan is the document you use to initially start your business, obtain funding, or direct operations. The two plans cover different timeframes — a strategic plan generally covers a period of three years, whereas a business plan is normally no more than twelve months. A strategic plan is for established businesses, organisations and business owners who know that they have to plan diligently to ensure they can sustain and grow their organisation. Whereas a business plan could be for new businesses such as a new company, law firm or franchise.
How To Build A Strategic Business Plan – 8 Steps To Success
Strategic Plan, Business Plan, Strategic Business Plan: Is There a Difference? – nLIVEn
The meanings of the words are quite similar; a method for achieving an end. The differences in types of industry, clients, and projects call for one method or another. A plan is an arrangement, a pattern, a program, or a scheme for a definite purpose. A plan is most useful when staying well organized and on-track is the highest priority. A plan provides a coherent framework from which to build and a sure direction to follow, with intermittent milestones to pass in order to reach an end goal. A plan eliminates false confidence and increases stability.
The Complete Guide to Writing a Strategic Plan
Strategic planning is an organization 's process of defining its strategy , or direction, and making decisions on allocating its resources to pursue this strategy. It may also extend to control mechanisms for guiding the implementation of the strategy. Strategic planning became prominent in corporations during the s and remains an important aspect of strategic management. It is executed by strategic planners or strategists , who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes.
A few months ago, we sent an email to our nonprofit and agency friends and clients about business planning —a key process for organizations that want to increase their impact and reach their next level of success. In response, we were asked about the difference between a strategic plan and a business plan. The distinction is important in helping you decide what kind of plan can best guide your organization, so we want to share it with you here. The business plan addresses the question of aligning your organization to achieve your goals.