In this article I will take as references different bibliographies that mention what is included in the strategic planning of a family business. Within the references, important aspects that a strategic planning should include are mentioned.
The main authors on strategic planning are John Ward, Stephen Lawrence and Frank Moyes.
The authors Acosta and Perez (2010, P.85) in their research on Strategic Planning in Family Businesses, refer to Ward mentioning that the methodology for the development of a plan are the following:
- To have an x-ray of the current state of the company. (SWOT)
- Establish the family commitment with the future of the company to ensure planning.
- Perform financial analysis to know the health of the business.
- Perform market analysis to know the health to identify various alternatives that can be followed in the family business in terms of management, geography, quality and productivity.
- To know the goals that the family wishes to achieve.
- Select the strategy: Exploration of small markets, focus on the customer, among others.
- Evaluate the family’s interests.
Authors Lawrence and Moyes (2004, P.3) mention that the main elements for a successful business plan are the following:
- Executive summary.
- Company summary.
- Services and products.
- Industry and market analysis.
- Marketing plan.
- Operations plan.
- Development plan.
- Competitive advantage.
- Financial plan.
- Sources of financing.
Therefore, a reduced methodological framework for the creation of a strategic plan for a family business can be the following.
- Business concept. This can include the history of the family business, the business model and a brief description of its products or services.
- Market and industry analysis. Shows industry background, a PEST analysis, Porter’s five competitive forces analysis, and competitive benchmarking.
- Strategic fundamentals. The mission, vision and values of the company and the family, as well as a SWOT and Balance Scorecard.
- Marketing strategy. The realization of segmentation and the development of the 4Ps.
- Financial strategy. The study of financial indicators, sales analysis and projections of financial statements.
Based on these sections, it is possible to obtain the approach of the specific objectives of the project that a company needs. The ideal would be to complement the plan with the realization of the family protocol to cover specific needs of the family.