What Is Small Business Strategy?

Strategy is deciding where your business is going, then lining up the work so it gets there. It is not a forty-page binder, and it is not a slogan on the wall. For a small business it comes down to four jobs: picture where you are going, line every level up behind it, look honestly at what is changing, and turn the plan into names and dates.

1

Envision

Picture where the business will be in five years, and say in one sentence what it does, for whom, and why.

  • Strategic thinking
  • Vision statement
  • Mission statement
2

Align

Step objectives down from five years to this month, so every rung points at the one above it.

  • Gap analysis
  • Long and short-term objectives
  • Strategic alignment
3

Assess

Look honestly inside the business and outside it, and change a rung when the look says so.

  • SWOT analysis
  • Environmental scanning
  • Competitive analysis
4

Execute

Give every strategy an objective and every step a name, a date, and a cost. Then review it.

  • Functional strategy
  • Action plan
  • Strategy review

Strategy is not only for big companies with planning departments. A small business can do it on one page: a five-year picture, a few objectives at each level, an honest look around, and this month's steps with names on them. It is the Plan in Dr. Paul's Organize-Plan-Grow™ Strategy, and when a lender or partner needs the full version, it becomes a written business plan.

A full calendar tells you that you are moving. It does not tell you where.

Doctor Owl, Strategy for Small Businesses

Find the Rung Your Business Is Missing

Each foundation opens with a question a real owner asks. Start with the one that sounds like you. The first ten are about where you are going: the picture, the objectives that step down from it, and getting everyone pointed the same way. The second ten are about how you get there: the honest look, the strategies, the plan with names and dates, and the page that holds it all. Need a term? The strategy glossary defines every one in plain English.

Part One: Where You Are Going

Foundations 1 to 10
01Envision

What Is Strategic Thinking? Working On vs. In Your Business

“Every tour is full, every week. Why does it feel like we’re going nowhere?”Chapter 1 · Every Tour Full, Going Nowhere: A Horse’s Year on the Floor

Strategic thinking is stepping back from the daily work to ask where the business is going and why. It means working on the business, not just in it, because a full schedule is not the same as direction.

Read the full guide →
02Envision

How to Write a Vision Statement for a Small Business

“I have a hundred ideas and I love all of them. How do I know which way to go?”Chapter 2 · A Hundred Sketches, No Destination: A Squirrel’s Someday Box

A vision statement is one or two sentences about where your business will be in five years: where, who, what, and how much. You use it as a filter for every new idea.

Read the full guide →
03Envision

How to Write a Mission Statement, With Examples

“Everything I make sells. Why can’t I say what my business is?”Chapter 3 · Nine Products, No Sentence: A Bee’s One Line

A mission statement is one plain sentence about what your business does, for whom, and why, today. The vision is where you are going. The mission is what you check before you say yes.

Read the full guide →
04Align

What Is a Gap Analysis? Where You Are vs. Where You Want to Be

“I have five resorts planned, every one of them. Why am I no closer to any of them?”Chapter 4 · Five Resorts, Five Distances: An Elephant’s Measuring Tape

Gap analysis is measuring the distance between where your business is now and where your vision says it will be, in four plain things: money, people, customers, and time.

Read the full guide →
05Align

How to Set Long-Term Business Objectives

“I pick a new goal every month, and I mean every one. Why don’t I ever get anywhere?”Chapter 5 · Twelve Goals, No Ladder: A Monkey’s Five Years

Long-term objectives are the few measurable results your business must reach in three and five years to make the vision real. About three per rung is a practical limit.

Read the full guide →
06Align

How to Set Short-Term Business Goals That Get Done

“We’ve got forty things to lock down this year. Why can’t we finish one?”Chapter 6 · Forty Locks on One List: Two Crabs and a Year

Short-term objectives are the few results you mean to reach in the next year and the next six months. Each one climbs a long-term rung, and fewer is stronger.

Read the full guide →
07Align

What Is Operational Planning? Turning Goals Into Monthly Targets

“I know where the shop should be in five years. Why does every day still go to whatever walks in the door?”Chapter 7 · A Lathe on the Wall, a List on the Counter: An Ant’s Month and Day

Operational planning turns six-month objectives into this month's targets and today's short list. The team owns the bottom rungs. The owner owns the top.

Read the full guide →

Part Two: How You Get There

Foundations 11 to 20
11Assess

How to Do a SWOT Analysis for a Small Business

“Everything’s going great. Why would I go looking for what’s wrong?”Chapter 11 · Eleven Strengths, No Weaknesses: A Fox’s Four Boxes

A SWOT analysis is a four-box look at your business: strengths and weaknesses inside, opportunities and threats outside. It is only as useful as the honesty you put into it.

Read the full guide →
12Assess

What Is Environmental Scanning? Watching What Changes Outside

“I build it right, every time. Why did three jobs go to somebody else this season?”Chapter 12 · Stone on the Board, Timber in the Bid: A Beaver’s Friday Look

Environmental scanning is a regular look at what is changing outside your business, from rules and prices to customers and competitors, before it reaches your door.

Read the full guide →
13Assess

What Is the Industry Life Cycle? The Four Stages Explained

“I stock what the caravans need. I always have. Why is there less every year?”Chapter 13 · Forty Caravans, Then Fourteen: A Camel’s Notched Post

The industry life cycle is the pattern most markets follow: introduction, growth, maturity, and decline. Knowing your stage tells you whether good service alone can still win.

Read the full guide →
14Assess

How to Do a Competitive Analysis for a Small Business

“Nobody else in the forest makes waffles. Who would I even be competing with?”Chapter 14 · A Jaguar in the Window, a Waffle on the Griddle: A Labrador’s Morning Coin

Competitive analysis is comparing your business honestly to everyone who wants the same customer's money, on the things that customer actually compares, even if they sell something different.

Read the full guide →
15Execute

What Is Functional Strategy? Operations, Sales, and Finance

“I know where I’m going. What do I actually change in the honey house, at the stall, and in the ledger?”Chapter 15 · A Ladder on the Wall, Three Jobs on the Bench: A Bee’s Monday

Functional strategy is a plan for each main part of the business, usually operations, sales, and finance. Each one names the objective it is there to reach.

Read the full guide →
16Execute

What Is Opportunity Cost? Examples for Small Business

“Somebody offers me steady work. Isn’t it crazy to say no?”Chapter 16 · A Good Offer, a Bad Trade: A Raccoon’s Truck-Days

Opportunity cost is what you give up when you choose one thing over another, measured by the next best use of the hours, trucks, or money. Saying no is a strategy.

Read the full guide →
17Execute

How to Write an Action Plan With Owners and Dates

“I decide things. Good things. Why don’t they ever get done?”Chapter 17 · A Label Under the Sugar Jar, Six Lines on the Wall: A Labrador’s Hatch

An action plan turns a strategy into steps for this month. Every step gets one person's name, a specific date, a cost, and a check date when you look at every line.

Read the full guide →
18Execute

What Is Pilot Testing? Test Small Before You Bet Big

“I already know it’ll work. Why would I test it?”Chapter 18 · Six Rooms, Four Weekends: An Elephant’s Trial Run

Pilot testing is trying an idea small before you commit to the full version. Write down the question the test must answer, and what success looks like, before any results come in.

Read the full guide →
19Execute

How to Review Your Business Strategy

“I made a plan in the spring. It’s still on my wall. What else am I supposed to do?”Chapter 19 · Pinned in Spring, Read in Winter: An Octopus’s Second Look

A strategy review is a scheduled look at your plan that compares what happened to what you intended, then decides for each part whether to keep it, change it, or drop it.

Read the full guide →
20Execute

How to Write a One-Page Strategic Plan

“My plan is ten years old and forty pages long. Do I have to write all of it again?”Chapter 20 · Forty Pages, One Page: A Beaver’s Plan for the Bank

A strategic plan brings your vision, mission, objectives, outside look, strategies, and near-term actions into one document. The most useful version fits on one page anyone can read.

Read the full guide →
Every foundation is one chapter of the book, and one rung of the ladder you build as you read.Get the book →

Read a Chapter: The Horse With Fourteen Full Tours

Commander Colt has fourteen tours, every one of them full, and a fifteenth on the way. His goose has the ledger. If your calendar is full and your year feels flat, this one is for you. Here is how Chapter 1 begins.

Chapter 1 · Strategic Thinking

Every Tour Full, Going Nowhere: A Horse’s Year on the Floor

“Every tour is full, every week. Why does it feel like we’re going nowhere?”

The printer had pegged next year’s calendars on a line across the shop, and Doctor Owl wanted the plainest one there was.

Forty calendars swayed on the line, each open to the first month of the coming year: paintings of the ridge, a different bird for every month, which he examined with professional suspicion, a recipe on every page, a proverb on every day.

“I want twelve months,” said Doctor Owl, “and a square for each day, and nothing else.”

“Nothing else?” said the printer. She was a grey rabbit with ink to her elbows.

“No ridge. No birds. No wisdom. Especially no wisdom. I have to supply my own.”

She went into the back to look. While she looked, he walked the length of the line, and at the end of it, by the press, he found a stack of calendars already wrapped in brown paper and tied with string. Each had a slip tucked under the string, and each slip said FOREST TRAILS and the name of a tour.

Ridge Sunrise. Ferry Dawn. Mill Bridge. Dry Wash Ride. Creek Walk. Skating. He counted. There were fourteen.

“The mayor’s,” said the printer, coming back with a plain grey calendar in her paws. “One for every tour. He likes each guide to have their own.” She set the grey one on the counter. “He asked me to leave room for more.”

“Room,” said Doctor Owl.

“Blank ones. He said he might need another two by spring.” She tied off his string. “He always needs another two by spring.”

The bell over the door went before he could answer, and Colt had come in at a canter. He had snow on his mane and a booking slip in his teeth, and he took the slip out and beamed at the room.

“Doc! Good, you’re here, I’ll only be a minute.” He turned to the printer. “Fifteen. I need a fifteenth. Library history walks, Thursdays, starting in the new year. The librarian asked me on the steps this morning.” He pawed the floor, once, the way he did when he was pleased with himself. “Just a bit more horsepower.”

“You said that about the skating,” said the printer.

“And the skating’s full!”

Doctor Owl picked up his plain grey calendar and tucked it under his wing. He looked at the stack of fourteen, and at the fifteenth slip in the printer’s paw, and at the horse, who had already turned to go and was explaining to the doorframe that he would send Greta for them on Friday.

“Colt,” said Doctor Owl. “Have you a quarter of an hour?”

“For you, Doc? Always.” Colt checked the clock over the press. “Well. Ten minutes. I’ve got the creek walk at noon.”

The Forest Trails office was over the stable at the end of the square, and it smelled of hay and wet wool and the stove. Greta had the booking board on the wall, the one she had built when the tours were overbooked and nobody knew who was where. Every line on it was full, every day of the week, fourteen tours across and seven days down, chalked in her firm square hand.

“Every tour, every week,” said Colt, and his whole chest went up with it. “Full.”

Greta, at the desk, said nothing. She was a large grey goose with a pencil tucked into her wing feathers and a ledger at her elbow, and she had stopped saying things to Colt about the board some time in the autumn.

“And how is the year?” said Doctor Owl.

“Best year we’ve had,” said Colt.

Greta made a small noise in her throat.

“Greta,” said Doctor Owl. “May I see the year?”

She opened the ledger without a word and turned it round on the desk, and put one wing tip on the bottom of two columns.

Last year. Nine tours. Coins in: 4,800. Coins out: 4,200. Kept: 600.

This year. Fourteen tours. Coins in: 6,000. Coins out: 5,400. Kept: 600.

Colt looked at it over the owl’s shoulder.

“That’s the same,” he said.

“It is the same,” said Greta.

Five more tours, twelve hundred more coins in, and the same six hundred kept. Where did a whole year of work go? The rest of Chapter 1 is in the book.

Keep Reading on Amazon →

Could You Say Where Your Business Is Going?

Line 6 of the Owner's Scorecard asks four questions, one for each job. A yes counts only if every part of the question is true today.

  1. Envision

    Can I describe where my business will be in five years (where, who, what, and how much), and say in one plain sentence what it does, for whom, and why?

  2. Align

    Do I have objectives at every rung, from five years down to this month, each one pointing at the one above it, and could each person on my team tell me their rung for this month in their own words?

  3. Assess

    In the last three months, have I looked honestly at my weaknesses, my customers, my competitors, and what's changing outside my business, and changed a rung when the look said I should?

  4. Execute

    Does each of my operations, sales, and finance strategies name the objective it serves, does every step of this month's plan have one name, one date, and one cost, and do I review the plan on a date I set and actually keep?

Your score: four yeses is a 5. Three is a 4. Two is a 3. One is a 2. None is a 1. A low score is a place to start. Busy owners often find the gap is at the very top: the five-year picture was never written down.

Strategy for Small Businesses

Strategy for Small Businesses by Dr. Paul Borosky, DBA, MBA

Book 6 of Dr. Paul's Fabled Forest Business School Series. The forest owners have fixed what was broken. The tours are full and the trucks are out, and nobody can say where any of it is going, while a hawk unveils a sixty-page plan across the square. Each chapter follows one owner through one strategy problem and teaches one real idea by its real name, as Doctor Owl builds a ladder from five years down to today.

  • 20 chapters in two parts: where you are going and how you get there
  • Dr. Paul's Nutshell after every chapter: what it is, why it matters, how to use it, and one question for you
  • Doctor Owl's Wise Words and Mrs. Owl-Willow's Reminder: the lesson in one line, twice
  • The Talon Way: seven big-plan shortcuts that start at the top of a ladder with nothing underneath
  • A full glossary with every strategy term defined
  • Line 6 of the Owner's Scorecard, to pick the first fix and measure it in 90 days
Get the Book on Amazon →
For Business Students and Teachers

Terms like gap analysis, SWOT, environmental scanning, and the industry life cycle are taught by their textbook names and tied to a story you can picture: fourteen full tours that kept the same six hundred coins, a gym that was full for ten years, a forty-page plan nobody had read. That makes the book a plain-English companion for strategic management, capstone, and small business courses. Teaching one and want to talk about using it? Call or text Dr. Paul at (321) 948-9588.

Strategy Ties the First Five Books Together

The earlier books fix the parts. Strategy points them in one direction, so the management, the numbers, the operations, the marketing, and the sales all climb the same ladder. Start anywhere in Dr. Paul's Fabled Forest Business School Series.

Books 7 to 10 (Growth, Human Resources, Technology and AI, Survival) are coming next. See every current title on Dr. Paul's business books page.

What Owners Ask About Strategy

What is small business strategy?
Small business strategy is deciding where your business is going and lining up the work to get there. It covers the picture you are aiming for, the objectives that step down from it, an honest look at what is changing, and a plan with names and dates.
What are the four jobs of strategy?
Dr. Paul groups them into four: envision, which is picturing where the business will be in five years; align, which is objectives at every level that point at that picture; assess, which is an honest look inside and outside the business; and execute, which is strategies, action plans, and regular reviews.
What is the difference between a vision statement and a mission statement?
A vision statement says where the business is going, built on a five-year picture of where, who, what, and how much. A mission statement says what the business does, for whom, and why, today. The vision is the destination. The mission is what you check before you say yes.
Does a small business need a strategic plan?
Yes, but it does not need to be long. A one-page plan with the vision, a few objectives at each level, the main strategies, and this month's actions with names and dates is often more useful than a thick binder nobody reads. Review it on a date you set.
Who is Strategy for Small Businesses written for?
Small business owners, managers who turn the owner's plans into daily work, people planning to start a business, and business students. Every strategy idea is taught by its real textbook name, defined in a glossary, and summed up in Dr. Paul's Nutshell at the end of each chapter.
How often should a small business review its strategy?
Check the action plan every month and review the whole strategy on a date you set, often each quarter or twice a year. Start at the top of the ladder and work down, because a wrong objective near the top affects every rung beneath it.

Build the ladder with the book. Call when you want help turning it into a plan.

Dr. Paul Borosky, DBA, MBA

Business Consultant, Author & Educator | 14+ Years | 1,000+ Clients Served

DBA, National University MBA, Focus in Finance, Webster University

Dr. Paul Borosky, DBA, MBA is a business consultant, author, and educator, and the founder of Quality Business Plan. He helps small business owners across the United States and Canada with business planning, financial modeling, fractional CFO and COO work, and the strategic plans lenders and partners ask for. His planning system, Organize-Plan-Grow™, is the backbone of his consulting work. He is the author of numerous books on Amazon and has published over 1,000 business videos on YouTube. He has taught as an adjunct college instructor and teaches in Florida public schools.

14+
Years Experience
1,000+
Clients Served
$100M+
Projects Funded
1,000+
YouTube Videos

This page is for general educational purposes only. It is not legal, financial, tax, or lending advice. Every business and market is different, so talk with a qualified professional before making major decisions about your own business. The Fabled Forest, its characters, and its businesses are fictional.