Strategic planning for small businesses: Where to start
Strategic planning is often associated with large organisations with dedicated teams and abundant resources. However, it is small businesses that can benefit the most from a well-defined strategy, as they operate in competitive markets and with more limited structures. In this article, we present the first steps to building effective strategic planning, using best practices in business management, business models and entrepreneurship.
Strategic planning for small businesses: Where to start
Strategic planning is often associated with large organisations with dedicated teams and abundant resources. However, it is small businesses that can benefit the most from a well-defined strategy, as they operate in competitive markets and with more limited structures. In this article, we present the first steps to building effective strategic planning, using best practices in business management, business models and entrepreneurship.
For business owners and entrepreneurs, understanding the direction of the business is essential for making sound decisions and ensuring sustainable growth. Starting the strategic planning process may seem challenging, but it is a crucial step for those seeking growth, predictability and greater management efficiency.
By analysing the starting point, structuring the business model, defining clear objectives and monitoring results, any small business can create a robust, future-oriented strategy — fundamental pillars of modern business management and entrepreneurship.
1. Assess the starting point: Where is your business today?
Before setting goals or drawing up plans, it is essential to understand the company’s current situation. This step allows you to build a solid, fact-based strategy. Carrying out a SWOT analysis is the first step towards defining a clear and realistic strategy for the goals and targets you want to achieve.
But what is a SWOT Analysis? It is a simple and effective tool that gives business owners an overview of their company: its strengths, weaknesses, opportunities and threats.
With this analysis, entrepreneurs should be able to answer questions such as: What sets my company apart? What are we really good at? What are our internal limitations? Which market trends can we take advantage of? Which external factors could harm our activity?
It is crucial to answer realistically and objectively.
2. Develop a financial diagnosis
A good strategic plan must always be aligned with the company’s financial capacity. It is essential to assess key indicators such as cash flow, profit margins, fixed and variable costs, investment capacity or access to financing, and to define measurable targets.
3. Review (or Define) the Business Model
Many small businesses begin operating without a structured reflection on their business model, which can limit growth. It is important to question who the ideal customer is, what problem or need the company is solving, what differentiates it from the competition, how it generates revenue, and what the essential resources and processes are. There are tools that facilitate this analysis and make it easy to visualise the fundamental elements of the business.
4. Set clear and measurable strategic objectives
A strategy must translate into concrete objectives. The clearer the objective, the easier it is to track progress. A good practice is to use the SMART methodology (Specific, Measurable, Achievable, Relevant and Time-bound).
It is important to define clear objectives such as “Increase sales volume by 20% in the next 12 months” or “Reduce customer acquisition costs by 15% by the end of the year.”
5. Create a Realistic Action Plan
With your objectives defined, it is time to organise implementation.
Define who is responsible for each initiative; the concrete actions to be carried out; deadlines; the required resources (human, financial and technological); and the performance indicators (KPIs) that will be used to track progress.
Some useful KPIs for small businesses include monthly revenue, average transaction value, customer acquisition cost, conversion rate and customer satisfaction levels.
6. Involve the team and communicate the strategy
Even in small businesses, internal alignment is essential. Share the vision, objectives and challenges with all team members. When everyone understands their role in the strategy, execution becomes more efficient and motivating.
7. Monitor, review and adapt
Strategic planning is not a static document. It should be reviewed regularly — ideally every quarter.
Evaluate what is working, what needs adjustment, what new opportunities have emerged and which threats need to be mitigated. Adaptability is one of the greatest strengths small businesses have in today’s environment.
If you want to develop a strategic plan tailored to your business reality, a specialised consultancy can support you in defining priorities and implementing best practices. Talk to us — our specialised consultants can help.
If you want to develop a strategic plan tailored to your business reality, a specialised consultancy can support you in defining priorities and implementing best practices. Talk to us — our expert consultants are ready to help you.
Andreia Arenga
13.11.2025
All rights reserved. This article is protected by copyright and may not be reproduced, distributed, transmitted or used, in whole or in part, without the prior written permission of Equações Exaustivas Lda. All trademarks, company names, logos and products mentioned are the property of their respective owners.
For business owners and entrepreneurs, understanding the direction of the business is essential for making sound decisions and ensuring sustainable growth. Starting the strategic planning process may seem challenging, but it is a crucial step for those seeking growth, predictability and greater management efficiency.
By analysing the starting point, structuring the business model, defining clear objectives and monitoring results, any small business can create a robust, future-oriented strategy — fundamental pillars of modern business management and entrepreneurship.
1. Assess the starting point: Where is your business today?
Before setting goals or drawing up plans, it is essential to understand the company’s current situation. This step allows you to build a solid, fact-based strategy. Carrying out a SWOT analysis is the first step towards defining a clear and realistic strategy for the goals and targets you want to achieve.
But what is a SWOT Analysis? It is a simple and effective tool that gives business owners an overview of their company: its strengths, weaknesses, opportunities and threats.
With this analysis, entrepreneurs should be able to answer questions such as: What sets my company apart? What are we really good at? What are our internal limitations? Which market trends can we take advantage of? Which external factors could harm our activity?
It is crucial to answer realistically and objectively.
2. Develop a financial diagnosis
A good strategic plan must always be aligned with the company’s financial capacity. It is essential to assess key indicators such as cash flow, profit margins, fixed and variable costs, investment capacity or access to financing, and to define measurable targets.
3. Review (or Define) the Business Model
Many small businesses begin operating without a structured reflection on their business model, which can limit growth. It is important to question who the ideal customer is, what problem or need the company is solving, what differentiates it from the competition, how it generates revenue, and what the essential resources and processes are. There are tools that facilitate this analysis and make it easy to visualise the fundamental elements of the business.
4. Set clear and measurable strategic objectives
A strategy must translate into concrete objectives. The clearer the objective, the easier it is to track progress. A good practice is to use the SMART methodology (Specific, Measurable, Achievable, Relevant and Time-bound).
It is important to define clear objectives such as “Increase sales volume by 20% in the next 12 months” or “Reduce customer acquisition costs by 15% by the end of the year.”
5. Create a Realistic Action Plan
With your objectives defined, it is time to organise implementation.
Define who is responsible for each initiative; the concrete actions to be carried out; deadlines; the required resources (human, financial and technological); and the performance indicators (KPIs) that will be used to track progress.
Some useful KPIs for small businesses include monthly revenue, average transaction value, customer acquisition cost, conversion rate and customer satisfaction levels.
6. Involve the team and communicate the strategy
Even in small businesses, internal alignment is essential. Share the vision, objectives and challenges with all team members. When everyone understands their role in the strategy, execution becomes more efficient and motivating.
7. Monitor, review and adapt
Strategic planning is not a static document. It should be reviewed regularly — ideally every quarter.
Evaluate what is working, what needs adjustment, what new opportunities have emerged and which threats need to be mitigated. Adaptability is one of the greatest strengths small businesses have in today’s environment.
If you want to develop a strategic plan tailored to your business reality, a specialised consultancy can support you in defining priorities and implementing best practices. Talk to us — our specialised consultants can help.
If you want to develop a strategic plan tailored to your business reality, a specialised consultancy can support you in defining priorities and implementing best practices. Talk to us — our expert consultants are ready to help you.
Andreia Arenga
13.11.2025
All rights reserved. This article is protected by copyright and may not be reproduced, distributed, transmitted or used, in whole or in part, without the prior written permission of Equações Exaustivas Lda. All trademarks, company names, logos and products mentioned are the property of their respective owners.
