A Strategic Plan should not be confused with a Business Plan.
A Strategic Plan contains the company’s vision, mission statement, goals and objectives over a period of time and how these will be achieved. It also gives direction to the owners, directors and employees. It can be used to change direction, enter new markets, empower staff and give a sense of direction to the owners.
A Business Plan contains the facts and figures about your business and is usually used for fund-raising as well as setting targets over a specified period of time. Preparing a Business Plan is easier if you have already prepared a Strategic Plan.
The best way to explain the difference is to look at what a Strategic Plan should be and what it should contain.
~ It should be short and provide a foundation for a business plan
~ Should be visionary and directional
~ Relate to the medium term, say 2-4 years
~ Focus on matters that are of strategic importance
~ Contain a mission statement, goals, objectives, action plans, resource
allocations, financial projections
~ Competitive analysis, risk analysis and contingency plans