Strategic planning is a structured approach to anticipating the future and “exploiting the inevitable” . The strategic plan charts a path for both your internal management and competitive actions in key markets or divisions. Application of this process might take the form of a plan to maintain leadership in an important or growing category over the next five years. Strategic planning for start-ups is a process for ensuring that the budget dollars follow the plan rather than vice versa. (Paris, 2003) For start-ups, planning is not just following their business plan for growth and expansion. The strategic plan often guides retrenchment and reallocation since many external factors shift and market conditions change when competitors make investments, innovation or strategic moves.

Strategic plans make the case for resource allocation in an environment of scarcity. The strategic planning process helps your venture determine which products or programs are exemplary or offer the greatest opportunity. Ultimately, strategy is about differentiation . Differentiating your product mix is critical. However it is a more difficult task than most companies believe since they are modeled after top national or regional competitors. Ironically, most marketing material could be used by direct competitors by simply changing out the logo, colors, and tagline.  Companies who do not strategically plan, fall into the trap of simply following the leader’s well-known program.