In the typical sequence of business development, the strategy usually comes before the business plan.
Here’s why…
- Strategy Development – Before creating a business plan, it’s essential to develop a clear strategy outlining the overall direction and approach of the business. This involves defining the mission, vision, goals, target market, value proposition, competitive advantage, and key tactics to achieve objectives. Strategy sets the foundation for all subsequent planning and decision-making.
- Business Plan Creation – Once the strategy is established, a business plan is then crafted to operationalize and execute that strategy. The business plan is a detailed document that outlines how the business will be structured, operated, and financed to achieve its strategic goals. It includes sections such as executive summary, company description, market analysis, organization and management, product or service offerings, marketing and sales strategy, financial projections, and more.
Strategy provides the overarching direction and framework for the business, while the business plan translates that strategy into specific actions and plans for execution. Therefore, it’s generally advisable to develop the strategy first before diving into the detailed planning process outlined in the business plan.
