Mastering 3-Year Strategic Planning for Business Growth
Strategic planning is essential for any business aiming for sustainable growth. While some companies opt for five-year plans, I personally prefer three-year planning due to the ever-changing business landscape. It’s challenging to predict the future accurately over a five-year period, but a well-structured three-year plan provides clarity and direction without being overly rigid.
This post is inspired by a chapter from our upcoming book on scaling operating systems—how to grow your small business with less time and stress. If you’d like a copy of the strategic planning template, feel free to email me.
The 3-Step Process for 36-Month Planning
A structured approach to planning ensures that businesses move beyond ambitious goals and integrate actionable strategies. Here’s a three-step process to create an effective 36-month strategic plan:
Step 1: Market & Competitive Analysis
Before setting goals and strategies, conduct a thorough analysis of your market position.
- Competitive Analysis: Identify key competitors and analyze their strengths and weaknesses. What are they competing on—price, quality, service, or something unique? Understanding the competitive landscape helps inform your strategy without simply copying others.
- Ideal Client & Pain Points: Clearly define your target customer and their needs. What problems are they trying to solve? Whether you’re in fashion, real estate, or tech, understanding your customer’s priorities helps refine your approach.
- Growth Diagnosis: Ask yourself, Why are we growing or not growing at the desired rate? The economy may play a role, but internal factors like team alignment, pricing, vision, and strategy execution often have a bigger impact.
- Value Proposition: Define the unique benefits you provide to your customers. Ask yourself:
- What do we do better than the competition?
- What do we offer that is distinct and desirable?
- What is missing in our industry that we could provide?
Step 2: Setting Goals & Strategies
Once you have a clear understanding of your position in the market, it’s time to set aspirational yet achievable goals.
- Financial Goals: Determine your revenue and profit targets for the next three years. Unlike an annual budget, this should be top-down and aspirational, aligning with your broader vision.
- Strategic Goals: These goals should break down key areas such as market segments, customer demographics, or geographical expansion. Examples include increasing revenue from a specific channel, improving margins, or expanding into new territories.
- Core Strategies: Focus on differentiation through the Four P’s—Price, Product, Promotion, and Placement (distribution). Some key areas to consider:
- Product expansion or improvement
- Pricing strategy adjustments
- Lead generation and marketing initiatives
- Expansion into new markets
- Strengthening internal teams and leadership
Step 3: Execution & Follow-Through
A solid plan is only as good as its execution. To ensure your strategy translates into tangible results, you need a structured execution framework.
- Action Plans: Each core strategy should have clear action steps and deadlines. If your strategy includes expanding into retail, define how many stores you plan to open, in which markets, and the first steps to get there.
- Performance Tracking: Set up regular meetings to review progress. This includes weekly one-on-ones, monthly KPI meetings, and quarterly strategy reviews. Companies like Seaboard Energy and Five Guys Canada hold quarterly strategy meetings to refine their plans and ensure alignment with their long-term goals.
By following this structured approach, businesses can ensure that their growth is not just a vision but a reality supported by actionable strategies. Remember, planning is not about predicting the future—it’s about preparing for it.
If you’d like a copy of our three-page strategic planning template, feel free to reach out via email. Happy planning!