Why is strategic planning important to a small company?

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While most large businesses have realized the need for strategic planning and have established processes for it, small businesses often neglect to think about the long term. This can be a mistake, though, because many crucial decisions require having a strategic plan in place.

Growth projections are a key element of strategic planning. For example, imagine a small farm that has had some success in selling produce crates to local customers. The farm can choose to stay small, accepting only a limited number of customers that can be served by the family and a few part-time laborers or the farm can choose to expand. That might mean cultivating additional land, hiring more permanent staff, and investing in more farm machinery. Having a clear strategic plan will allow the farm to succeed in one of these paths. However, if the farm does not have a strategic...

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