3-5 YEAR STRATEGIC BUSINESS PLAN EXAMPLES
Develop a 3 Year Plan and Strategic Growth Initiatives to Grow and Scale Up Your Business
The Five-Step Process to Create Your 3 Year Strategic Growth Plan
Table of Contents: 3 Year Plan and 5 Year Plan
- Step 1: Set 3 Year Strategic Plan Targets
- Step 2: Determine 3-5 Year Business Plan for Revenue Growth
- Step 3: Determine 3-5 Year Strategic Plan for Profit
- Step 4: Four Step Process to Determine Your 3-5 Year Strategic Plan
- Step 5: Five Steps to Advance Your 3-5 Strategic Plan
- Tips for Running a High-Quality Strategic Planning Session
3-5 Year Strategic Plan to Reach Your BHAG
Your 3-5 Year Strategic Plan can be viewed as a base camp on the way to the summit. 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.
Step 1 - Set 3 Year Plan Growth Targets
Set 3-year targets to define success before you start
Examples of the types of Targets and KPI dashboards you will want to consider include the following:
- Profit (EBITDA)
- Market Cap
- Cash Flow
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
- If you believe you can grow at a rate of 15% per year, then you will achieve the 2X mark in 5 years.
- If you believe you can grow at a rate of 25%, then you will achieve the 2X mark in 3 years.
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.
Step 2 - Determine Strategic Winning Moves for Revenue
Think of strategic revenue growth initiatives that can double your top line
Winning Moves are strategic growth initiatives and actions that enable you to double your revenue (2x) within 3-5 years. These winning moves 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 when you dedicate yourself to a Think Rhythm 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.
Watch the video to find out how winning moves help you grow with purpose and achieve your long-term
Step 3 - Determine Strategic Winning Moves for Profit
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 Winning Moves for Profit include the following:
- Leadership & talent growth
- New operating systems
- Opening more locations or a second office
These will be very specific to your company’s needs.
You cannot grow your business by cutting costs. It is important to have clear Winning Moves in order to better focus your team on revenue growth to help grow the top line.
Winning Moves are your company’s leading indicator of future revenue growth and financial health. Conversely, lack of Winning Moves is the leading indicator that you will hit the growth ceiling and stall. You cannot cut costs to get growth.
Step 4: Four Step Process to Determine Your Winning Moves for Revenue
Choose the right strategic growth initiatives with our template to get you started
Step 1: Brainstorm Winning Moves
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:
- What's my competition not willing to do?
- What do our customers hate but have to put up with?
- Do I have an asset or diamond in my backyard?
- What's the biggest barrier to entry for my prospects and how can I remove it?
- Are there opportunities to consider through partnership, acquisition or joint venture?
- What are some big ideas or opportunities we have discussed in the past, but not acted on?
Step 2: Vote on the Top 5-8
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.
Step 3: Evaluate & Rank Top 5-8 Ideas
Evaluate and rank each of the top 5-8 ideas based on two scales, Revenue Impact, and Ease.
- Revenue Impact - On a scale of 1-10, what is the potential impact this move could have on revenue? A score of 10 would indicate that this move alone could more than double your current revenue.
- Easy to do - On a scale of 1-10, how easy would it be to get this done? A score of 10 would indicate that it would be very easy to execute because you already have all the expertise and resources necessary, and it's synergistic with your other activities.
Step 4: Choose Your 1-3 Winning Moves
Select the few Winning Moves you want to include in your 3-5 year plan. Decide what to say yes to and what to say no to. Classify each idea:
- Winning Move for Revenue= part of 3-5 year plan; revenue growth
- Winning Move for Profit= part of 3-5 year plan; infrastructure, scalability, and efficiency,
- Idea Bench = Later, other Moves are more important
- Dead = Stop, losing move
These are the steps to identify the 1-3 Winning Moves you want to include in your 3-5 year plan. Now you're ready to begin the process of developing and implementing them. You may be interested in our blog post that includes a SlideShare to help you get started to develop Winning Moves to double your revenue.
Step 5 - Five Steps to Advance Your Winning Moves
How to execute your strategic initiatives to achieve your goals
Step 1: Name Your Strategic Winning Moves
Name each winning move idea uniquely in order to communicate the idea clearly with your team. Naming your winning move should intensify team focus and sell the idea internally and externally.
Step 2: Find the “Who”
The right “who” can accelerate your progress. Ask these questions to find the “who”:
- Who has the most experience and expertise
forthis Winning Move?
- Do we have the resources or need help?
- How does this impact cost, hiring, etc.?
Step 3: Develop the 3-5 Year Revenue Growth Projections
Winning Moves must bring you revenue growth. What is your projection for the next three to five years?
Step 4: Identify & Test Your Assumptions
Identify the assumptions leading you to believe the Revenue Impact and Ease rankings are accurate. Have the team document up to 5 assumptions they are making on each idea, then allow time to use data and experience to test those assumptions. This process aids to develop Winning Moves based on facts instead of emotion.
Ask these questions before jumping in to execute your 3-5 year strategic growth initiative:
- What are my top 5 assumptions on why this move will work?
- What are the key obstacles to overcome?
- What deal breakers must we validate before jumping in?
- Are there any government policies and regulations to consider?
- What trends are we banking on for success?
Step 5: Adjust and Test Again
Record the change or adjustment to make based on the real world insights and learnings. As you begin to put these Winning Moves into action, it's important that you keep testing your assumptions, documenting learnings and making adjustments to the plan as you go along. Visit our blog with 16 strategic planning tips to keep your strategic plan alive during the year.
Tips for Running a 3 Year Strategic Planning Session
Advice from the middle market experts
- Your 3-5 Year Targets and your Sandbox are related. The key question to answer when determining your Sandbox is “what market will you dominate over the next 3-5 years?” So make sure your Sandbox is large enough to support your 3-5 year Targets but concise enough to give you focus and direction.
- If your industry is growing faster than 25% per year, you will need to set a more aggressive Revenue Target. You never want to grow slower than your industry or you will be losing market share to your competition. If this is the case, you will need to set a target that is more than 2X your current revenue in 3 years.