Fact: Family businesses are the backbone of the economy! A worthy claim when you consider that 80% of UK SME companies are defined as family owned and SME companies deliver 60% of UK employment and 48% of business turnover.
Family businesses are known for their resilience, deep-rooted values, and long-term vision. However, as with many businesses they struggle with translating vision into action to achieve their goals. Niki Sterling, a multi-channel growth specialist who expertise is finding those hidden pockets of growth in your business shares her thoughts on the power of strategic planning in family firms.
Why Strategic Planning Matters.
A strong strategic plan is more than just a document—it’s a roadmap that ensures the business thrives for generations. It provides clarity, aligns family and business goals, and ensures that every decision contributes to long-term success.
If we consider that according to Harvard Business Review, 67% of business strategies fail and Kaplan and Norton suggest that up to 90% are not executed successfully across all businesses (public, private or family owned), there must be a missing link, what is that missing link?
I’ve worked with senior leaders for over 30 years helping them to understand where the missing links are. The missing link I’ve observed has been a lack of a strategic plan and without a structured plan whatever the type of the business or available resources, even the best idea’s fall flat.
A couple of examples of key issues I have found/observed within those businesses all of which have resulted in missed opportunities for growth.
Misalignment between the strategy and key enablers
Lack of integration and alignment among key stakeholders
A disjointed approach to their customer base resulting in missed opportunities for growth.
Family businesses, with their unique challenges of succession planning, governance, and balancing family dynamics, in addition to the commercial challenges cannot afford to fall into this trap.
Key Benefits of Strategic Planning
The levels of certainty that a strategic plan creates drives a team who have a central focus and vision point and will create your opportunities for 20%2 growth in 2025.
In addition you will;
Future-Proof Your Business, ensure you can withstand market changes and win in today’s challenging and evolving landscape.
Ensure your business strategies are laser-focused, adaptable, and capitalise on new and emerging growth opportunities.
Understand your customers' needs and ensure your strategies are aligned.
Ensure every metric and performance measure is aligned with your business strategies, to drive your desired outcomes.
Strengthen your competitive advantage by identifying and seizing opportunities before your competitors do.
When your business has clarity around this you will have the ability to drive an increase of 20% in revenue.
It will also preserve your family legacy and values and foster alignment between family and business goals, ensuring that your founding vision and core values continue to guide future decision making.
Common Pitfalls with Business Strategies
In each organisation where I have worked with my clients who are struggling to delivering their strategies, there is a common theme that I have found and that is that there is a disconnect between the insights, the strategy, the action plan and the execution. This leads to a lack of clarity of expectations, alignment and accountability.
The good news is that this can be brought together in a simple and practical cohesive multi-channel strategy that is easy to execute and will deliver your goals in 2025 and beyond.
Turning your Strategy into Action
Strategy planning does not have to take a long time, but it does require focus and if you follow the steps outlined below you will have a cohesive strategy that is relevant, action focused and will deliver!
Define Clear Business & Family Objectives – What does success look like for both the business and the family? Aligning these goals is crucial.
Identify ‘Spaces to Play’ for Future Growth – Where are the greatest opportunities to expand while staying true to your legacy? A multi-channel strategy ensures that you can unlock new revenue streams and optimise existing ones.
Develop a Practical, Action Focused, Execution Plan – A great strategy without an action plan is just an idea. Define responsibilities, lead measures, timelines, and key milestones to ensure implementation and enable you to be adaptable and respond to changes.
Regularly Review & Adjust – The business landscape changes, and so do family dynamics. A regular cadence and consistency of reviewing your plan will ensures it remains relevant, effective and allow you to course correct if necessary.
And don’t forget - Plan for Leadership & Succession Early – A family business must have a roadmap for leadership transitions to ensure smooth generational shifts.
Final Thoughts
Strategic planning is the foundation of business growth, it provides clarity, structure and alignment whilst helping your business to navigate challenges and seize opportunities ensuring your business continues to grow and succeed in 2025 and beyond.
I hope I’ve convinced you of the value, become a strategy plan advocate and join the 10% of business who successfully execute their strategies and take your business to the next level!
About the Author - Niki Sterling is a multi-channel growth specialist who expertise is finding those hidden pockets of growth in your business, expanding your Spaces to Play, delivering incremental revenue and profit. Find out more here
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