About.com GuideBegin to Plan - Make Your Strategic Plans
Planning is the process of setting objectives, when you start a business, and devising actions to achieve those objectives. Strategic planning is long-term planning when you start a business. You set a mission which would be the long-term direction of the business. For example, when you start a business, most business owners have as their strategic goal long-term financial security.
When business owners start a business, one part of strategic planners is often a SWOT analysis. SWOT means Strengths, Weakness, Opportunities, and Threats. Strengths and Weaknesses are internal to the firm, while Opportunities and Threats are external. Business owners try to eliminate weaknesses and threats and build on strengths and opportunities.
When setting the firm's mission statement, the business owner has to consider all functional areas of the firm including the finance, marketing, production, management, human resources, and legal objectives. Those are the internal areas of the firm.
When you start a business, you also have to consider the external environment including factors such as the economy, the environment, clients, the particular market niche, competition, and emerging technology.
The ultimate goal of strategic planning is to give the company a competitive edge over the other players in the marketplace
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