How much confidence do your company’s investors have? One of the best ways you can instill confidence in your investors is to do corporate strategic planning. There are various ways and here are some of the best ones:
1. You have objectives
This is another important way that corporate strategic planning can reduce concerns from your company’s investors. It’s not enough to state that your company wants to make money. Instead, the strategic plan should include specific objectives that can be tested using metrics.
There are all sorts of objectives you can include including sales, profits, margins, web visitors, new products/services, etc. It’s important for investors to see that your company has specific goals that it’s trying to achieve. This will help to make sure that you have goals that will generate income so you can pay back investors.
2. You have a strategy
OK, this might seem like a stating the obvious. What else could a corporate strategic planning be used for, right? It’s likely that your company might already have a strategy. That said, it’s important for investors to know about that strategy. If they’re investing their money they want to know what your company’s plans are to generate income so they can get their money back.
Even if your company has a strategic plan, putting it in a document will also help to remind your company about that plan. Sometimes it can get lost in the hustle and bustle of operating a business. Simply creating the strategic plan can remind your company that it has strategy A, B, and C for the future.
3. You can share your priorities
This is another plus of corporate strategic planning that your investors will want to see. That include different factors including growth, sales, profits, etc. These are all important issues because there are tons of things that your company could focus on.
In a sense, your investors just want to get their money back. That said, it’s also important for them to see how your company will focus its efforts to achieve that goal. There’s also no guarantee that your company will have the “right” priorities in the future, but they could be tweaked later as needed.
4. You have vision
This is another important benefit of corporate strategic planning that investors like to see. In particular, it shows that your company has a plan for how it will achieve its goals. It’s not enough to say that your company wants to make X sales or boost customer satisfaction by Y percentage points.
Instead, the strategic plan shows that your company has a vision of the future. That involves many factors including the market, economy, sales, drivers, and other factors. This is especially important if the investors aren’t familiar with your particular industry. In that case, it’s especially important for them to see how your plans are planning for the future.
Whenever you have investors, it’s important to minimize their concerns, and these are some of the ways corporate strategic planning can do that.