Here’s a direct excerpt from an article I wrote:
“Many small and medium businesses in numerous industries encounter a lot of competition due to low barriers to entry. In industries where start-up costs are relatively low and few regulatory, relationship, or infrastucture hurdles exist, the competitive landscape can be fierce. Such industries are often fragmented and local. Consequently, possessing a clear strategy for how you will differentiate and run your business can mean the difference between success and failure.
Determine goals and objectives.
One of the primary purposes of a strategic plan is to identify your business’ goals. To do this you must ask some challenging questions. What are your core competencies? What makes you better than your competitors? What are your revenue or net income goals? What area of the market would you like to focus on?”
To read my blog artilce in its entirety, go to The Need for a Strategic Business Plan in Competitive Industries.