These strategies outline the tasks and steps required to improve a business within specific timeframes. Knowing how to develop a long-term strategy helps create a manageable roadmap for the team. In this article, we will explore how to develop a long-term strategy, explaining what it is, why it matters, and providing eight steps for successful strategy creation.
A long-term strategy is a comprehensive business plan that defines future objectives. During the development process, you set and achieve goals to fulfill the company's overarching mission. To create a long-term strategy, you may establish several smaller goals that contribute to the ultimate objective. The purpose of a long-term strategy is gradual improvement within your company over an extended period. Long-term strategies typically take at least a year to accomplish, though you can also set plans spanning several years.
A long-term strategy can include one or multiple goals and can be as broad or specific as desired. For example, you might develop a long-term strategy to enhance overall customer service levels—a relatively broad goal. A more specific objective could be increasing five-star reviews by 25% within a year and a half.
Some other examples of long-term strategies may include:
• Increasing brand awareness
• Reducing production costs by 5%
• Hosting four promotional events annually
• Expanding to two new locations within three years
• Growing company revenue by 15%
Why is a long-term strategy important?
Business growth
Long-term strategies focus on major, enduring goals that lead to substantial business improvements. By following these plans, companies can achieve significant growth, such as increased sales or operational expansion, depending on the objectives set.
Risk management
These strategies also facilitate risk management by allowing businesses to adjust and refine plans over time. The extended timeframe provides flexibility to revise strategies and monitor progress, making it easier to manage risks and respond to unexpected challenges.
Budgeting
Budgeting becomes more effective with a long-term strategy, as expenses can be distributed over time. This approach ensures financial stability, enabling businesses to fund new projects while maintaining overall budget integrity.
Testing new ideas
Long-term strategies allow for testing new products or ideas with minimal risk. This gradual approach lets businesses implement changes, such as test marketing, and evaluate customer responses before full-scale rollout, helping mitigate potential setbacks.
How to create a long-term strategy
1. Define objectives
The first step in creating a long-term strategy is identifying both short- and long-term goals. Review areas where your business can improve or explore new initiatives you'd like to pursue. Focus on realistic, measurable goals that are easier to track and more achievable.
2. Develop strategies
Strategies are the specific actions taken to achieve your goals. Each objective may require different strategies. For example, if your goal is to grow social media followers, your strategies might include posting more frequently or hiring a social media manager. Outline each strategy and break it into actionable steps.
3. Set timelines
After defining goals and strategies, establish a realistic implementation schedule. This timeline should include start dates, deadlines, and flexibility for adjustments as needed. A well-structured schedule keeps the team accountable and ensures tasks are completed on time.
4. Adjust sales and marketing plans
Integrate sales and marketing into your long-term strategy by making necessary adjustments. These changes should reflect your company's evolving priorities. Collaborate with your marketing and sales teams to anticipate market shifts, target audience changes, or competitor moves, and align plans with strategic objectives.
5. Communicate with your team
Clear communication is crucial for successful long-term strategy implementation. Ensure your team understands the strategy and their roles within it. Encourage open dialogue through regular meetings to foster collaboration and make necessary adjustments based on team feedback.
6. Review the plan
Regularly review your strategy and make adjustments as needed. Check for errors, unrealistic steps, or outdated information. Involve team members in the review process to gather diverse perspectives and implement improvements where necessary.
7. Implement the strategy
Once finalized, begin executing the plan. A clear, actionable, and realistic strategy is easier to follow and execute. Conduct regular check-ins to monitor progress and ensure each team fulfills assigned tasks.
8. Evaluate results
Throughout the process, periodically assess results to determine if the strategy is working as intended. Tracking progress helps maintain team motivation, especially when positive outcomes are achieved. Use data to fine-tune the strategy for even better results.