Running a business is like embarking on a journey. You may have a vision of where you want to go, but without a clear strategy and actionable plan, you risk wandering off course. In this post, I’ll break down the critical difference between having a strategy and a plan, and why both are essential for growing your business.

Do You Run Your Business on Inspiration Alone?

If you’re a creative entrepreneur, you likely thrive on bursts of inspiration. You make decisions in the moment, driven by what feels right. While this creativity is a superpower, it can also become a stumbling block if you’re not anchored by a strategy. When you act only on what seems urgent or exciting, you may end up veering away from your long-term goals.

I see this often with business owners who wake up every day and decide what actions to take on a whim. If this resonates with you, it’s time to take a step back and consider the importance of having a well-defined strategy and plan.

Why You Need Both a Strategy and a Plan

A strategy is your master plan—a blueprint for achieving multiple long-term goals amidst uncertainty. It's your vision for where you want to take your business over the next 18 months to three years. On the other hand, a plan is a specific, detailed course of action that outlines how you’ll achieve each goal. Think of it as the step-by-step guide that will help you move from where you are now to where you want to be.

Example: Let’s say your long-term strategy is to grow your business from $1 million to $10 million in revenue within three years. A plan to support this strategy could be launching a series of best-selling books to diversify revenue streams and attract more clients.

The Cost of Avoiding Pain Points

We are all wired to avoid pain. In business, this often means sidestepping tasks we find unpleasant or challenging. For me, when I worked in retail, the last thing I wanted to do was clean out the fitting rooms. Yet, when I stepped up and managed this area effectively, we saw a direct impact on reducing theft, improving customer satisfaction, and boosting sales.

The same principle applies to your business strategy. Sometimes, you’ll need to focus on areas you’d rather avoid because doing so will yield the greatest growth and results. If you neglect these pain points, you might find yourself distracted by “shiny new ideas” that take you further from your goals.

The Difference Between Strategy and Plan

• Strategy: A master plan to achieve long-term goals under uncertain conditions. It's the “big picture” that drives your business forward.

• Plan: Specific, detailed steps you will take to achieve a particular goal. It's the actionable roadmap that guides your day-to-day efforts.

You need both a strategy and a plan to succeed. Start with your strategic ambition—your vision of what you want to achieve. Then, define the strategic goals that will lead you there. Finally, break down each goal into actionable plans.

Creating Your Strategy and Plan in Just a Few Hours

1. Define Your Strategic Goals: Spend an hour thinking about your long-term goals for the next 18 months to three years. What revenue targets do you want to hit? What new offerings or markets do you want to explore? Write these goals down.

2. Set Priorities: Take 10 minutes to determine if any of these goals need to happen before others. For example, if you want to write a book and hit $10 million in revenue, focus on writing the book first if it will help diversify your revenue streams.

3. Work Backwards: Spend 30 minutes mapping out the milestones for each goal. What needs to happen to achieve your goal, and what comes before that? Work backward from your goal to today to create a clear timeline.

4. Build Your First Plan: Now that you have your strategic goals and milestones, build a plan for the first milestone. Identify specific actions you need to take, who will be responsible, and how you will measure success.

Measurement: The Key to Success

Your plans are only effective if they have measurable outcomes. Define how you’ll measure success for each plan. If your plan is to write a book, set a timeline to complete the first draft. If your plan is to diversify revenue, define the metrics you’ll use to track your progress. Without clear measurements, you’ll never know if you’re moving in the right direction.

Staying Flexible

Remember, achieving strategic goals involves navigating uncertain conditions. As you execute your plans, be prepared to adjust when new challenges arise. This flexibility allows you to stay aligned with your strategy, even when the path forward changes.

Final Thoughts

Running a business without a strategy is like driving without a map. You may have a destination in mind, but without clear direction, you’ll waste time and resources trying to get there. By setting a strategic ambition, defining long-term goals, and building actionable plans, you give yourself the best chance to succeed.

If you’re feeling overwhelmed by this process or need guidance to get started, I’m offering free consultation calls for a limited time. Let’s work together to build a strategy that will take your business from surviving to thriving.

Ready to build your winning strategy? Book your free consultation.