Strategic Planning and the Small Business

In the case of small business, the owner‐manager is most likely to be the individual who establishes corporate objectives as well as carrying out a thorough evaluation of product lines, markets, and future competitive positions. Planning helps in the identification of present areas which have potential for future strengthening. This is sometimes not realised, with some business people believing that planning identifies new areas of product opportunity only. The necessary analysis of the sales history, margins and profits on a product basis reveals patterns of performance which may easily be overlooked in day to day management. The author argues the case for strategic planning in a small business.