How to create a 3 to 5 Year Strategic Business Plan
Four Steps to Create Your 3 Year Strategic Business Plan
Set 3 year strategic targets to define success before you start
Examples of the types of Targets and Visual KPI dashboards you will want to consider include the following:
You can add or subtract from this list to include the Targets that are most meaningful to your business.
The one Target that should apply
Be sure to include the year you that believe you will hit those Revenue Targets so that you can hold each other accountable. Strong 3 year strategic plans help you grow revenue and stay competitive and not caught up in the short term day to day management of your company. Download our 3 year strategic growth initiatives template.
Think of strategic revenue growth initiatives that can double your top line
Strategic growth initiatives and actions enable you to double your revenue (2x) within 3-5 years. These are often the base camps in the client's quest to reach the summit of Everest in order to achieve their BHAG (Big Hairy Audacious Goal).
3-5 Year strategic plans do not come from Eureka moments. They are developed over time and should be reviewed every year at your Annual Planning Session. These 3-year strategic business plans help your company grow and sharpen your competitive advantage. It is this business strategy that sets you apart from the competition. We have an excellent blog on 3 year strategic plan examples for you to get your creative juices flowing.
Download our free 3-5 strategic growth initiatives tool (template) to help you double your revenue with the proven Rhythm Systems process.
Determine strategic profit initiatives to increase productivity
These are the strategic capabilities you’ll need to develop in order to support your growth and reach your 3-5 year Targets. These are usually operational in nature or related to your infrastructure and help you while scaling up.
Some examples of profit include:
These will be very specific to your company’s needs, vision statement and BHAG.
Choose the right strategic growth initiatives with our template to get you started
Start by brainstorming a comprehensive list of at least 20 potential ways your team can think of to increase revenue. Some ideas to jump-start the revenue brainstorming process are the following:
Have the team consider each idea and vote on the top three they recommend investing time and energy in considering. Choose the top 5-8 ideas with the most votes.
Evaluate and rank each of the top 5-8 ideas based on two scales, Revenue Impact, and Ease.
Select the few ideas you want to include in your 3-5 year strategic plan. Decide what to say yes to and what to say no to. Classify each idea:
These are the steps to identify the 1-3 strategic ideas you want to include in your 3-5 year plan. Now you're ready to begin the process of developing and implementing them.
Make breakthroughs in your strategic planning sessions with expert facilitators.
Your 3-5 Year Strategic Plan can be viewed as a base camp on the way to the summit of your long term goal. This can be used as a tool to align your company around a common purpose and closes the strategy execution gap. The summit is your BHAG (or Big Hairy Audacious Goal) which is typically measured 10 to 20 years in the future, which can feel like a lifetime in today's business environment. Your goal here is to set your Targets and identify the Strategic Growth Initiatives (Winning Moves) and Scaling Initiatives (Winning Moves for Profit) you’ll need to develop in order to hit those Targets and move in the direction of achieving your BHAG.
Typically, you will determine your 3-5 year strategic business plan as part of your Annual Planning session, which will include your goals and objective for the year as well as outlining opportunities and threats facing your company. We also have a great blog post on how to facilitate a strategic planning session to get the return on investment from your planning session. We also have a great virtual strategic planning post that provides great tips on running a virtual planning session.