There are many things to consider when you are starting a new business. Many focus on the obvious elements- location (brick and mortar or online), hiring employees, and growth. Due to all the considerations at hand, many startups push the development of a strategic plan to the back-burner. However, your business should develop that strategic plan sooner rather than later. Working with an experienced startup attorney in Los Angeles with help you understand the importance of this plan and will help in developing a strong, effective strategy.
What is a Strategic Plan?
In short, a strategic plan is the big picture and long-term focus of a business. It can help your business by giving it direction, which is why your startup needs one in the early stages. Creating a strategic plan allows those involved to know what the goals are and where you need to concentrate resources. A well-drafted strategic plan will define the company, market, top competitors, overall objectives, and the approach to achieve those defined objectives.
Why Does Your Startup Need a Strategic Plan?
There are many advantages to developing a strategic plan. The most important reason, as mentioned above, is that such a plan will give your company a clear direction and established purpose. A strategic plan will also help with the overall success, as every business decision made should be based on whether or not it assists your startup’s ability to meet the goals set forth in the plan.
Additionally, if you plan to seek outside funding for your business, having a well-developed strategic plan will be critical. Most investors will require a strategic plan and will definitely review it prior to investing.
Developing an Effective Strategic Plan
The drafting of a strategic plan will vary for each company. Businesses will have varying goals and will operate in different markets. Accordingly, a blanket strategic plan will not be effective. In general, there are four main points to consider while developing your startup’s strategic plan.
Establishing Goals
Goals should be clear and specific. They should not be grand or unrealistic. The best course of action is to develop and work towards specific and measureable set goals.
Identification of Programs
Once the goals are established, you will then need to determine programs to pursue in order to achieve those goals. The most successful programs are typically those that have had input and consideration for the various functions of the business (i.e., supply chain, finance, research & development).
Evaluation of Core Competencies
After developing the list of potential programs, you need to ensure that these programs leverage your startup’s core competencies, which are your company’s strengths and competitive advantages.
Prioritization
After the potential programs have been identified, and the competencies have been evaluated, the next step will be to determine which of those programs should be implemented first. Factors to consider for each program should include risk, cost, and return on investment.
Contact Hakim Law Group Today
When starting a new business, there are many aspects that need to be diligently considered and developed upon, including a strategic plan. Working with an experienced startup lawyer in Los Angeles is essential in ensuring that your business is fully prepared for what may come. To learn more and/or schedule a consultation with the highly reputable and experienced Afshin Hakim of Hakim Law Group please call (310) 993-2203 or visit www.HakimLawGroup.com.
