Knowing where the businesses have come from, where they are now and where they expect to go is very important during strategic planning process (Neely, 2002).
Strategic planning is a process of making certain choices within an organization.
It can be defined as a designed process that is meant to support organizational leaders both locally and internationally in terms of operations methods, goals and objectives.
It has always been falsely thought strategic planning is only for big and multinational corporations.
It is important to note that strategic planning is crucial for every organization, both for profit and non-profit organizations.
One of the most important functions of strategic planning is that it assists a small business organization to set the direction of its future.
In this case, strategic planning is like a map clearly outlining how a business destination is to be reached (Marien, 1990).Alternatively, strategic planning can be defined as a management tool used for the purpose of enabling an organization to work effectively and efficiently towards achieving its goals and objectives.The process of managing the operations of a business is referred to as strategic because it entails how best a business organization respond to the circumstances arising from a dynamic and in other cases hostile business environment.In the process of conducting strategic planning, small organizations are preparing to meet future business challenges as they remain focused in meeting their strategic goals and objectives.Strategic planning prepares small businesses to deal with the future in five steps.The first one is that the firm foresees both potential opportunities and threats in order to meet its vision and mission.The second step is that the small businesses make decisions on how best they can respond to potential business opportunities and threats that they will encounter.In this case, strategic planning is very crucial for small business organizations.Small business organizations require to be more committed to strategic thinking and actions more than the large scale established business entities.Nonetheless, it is important to note that the legal definition of a small business varies greatly according various nations of the world; this also depends on the type of industry in which a business entity may be categorized into.This research paper will examine strategic planning; with regards to this, the essay will examine the strategic planning, practices, importance of strategic planning and the pitfalls of strategic planning amongst small businesses and finally provides a conclusion about strategic planning in small businesses.