<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=211788509327279&amp;ev=PageView&amp;noscript=1">


Planning, Planning, Who Needs Planning?



Planning, Planning – Who Needs Planning?  Let’s Just Do It!


Maybe, the old Nike marketing slogan didn’t get it completely right. Certainly, there are times the admonition to “Just Do It” is an important motivator. However, in an industry that has a propensity to “Just Do It” without much forethought or planning, maybe ever so often taking a backward step and a breath might be a better action.

And what better time to take that backward step and breathe than the end of the year. Planning, particularly strategic planning, requires looking backward as well as forward. But why do you need to plan at all and what is the difference between strategic planning and tactical planning?

Without a plan, your business will stay in a reactive mode. It will be driven by the weather, by the market segments the business is in whether that is your intention, and by the ups and downs of the economy. A business with a plan becomes proactive allowing ownership to maximize profits, create a place of preferred employment, facilitate an upbeat, organized working environment, create a culture of professionalism and differentiation, and take advantage of those businesses caught in the reactive, and often downward, spiral.

So what type of plan does a business require? It requires both a strategic plan and a tactical plan. The strategic plan is the overarching vision for what ownership wants his or her business to be when it grows up. Think of your business as a child. Just as you have hopes and dreams for a child, you have hopes and dreams for your business. Just as you want a child to grow up and be strong and independent and successful without constant parental attention and guidance, you want the same for your business. The most successful and valuable businesses are those that stand alone without the owner incessantly and forever working in the business.

The tactical plan is the goals and action plans that must be accomplished in order to achieve the strategic plan. The strategic plan is the what. The tactical plan is the how and when.


How to Create a Strategic Plan for your Business


  • Give yourself permission to dream about what you want your business to be – not what it is. Think about the early days when you first bought or started your company. Why did you want your own business? What drove you? What didn’t you like about where you were before – in life or in a job- and think about what you wanted to do differently. We live in a world consumed by wanting immediate answers, gratification, and actions, and we don’t give ourselves the time or space to dream. Hint: disconnect from phones, e-mails, and outside interference during your dream session.
  • Ask and answer what you personally, as an owner, want from the business. The answer is different for each person. It depends on your age, your health, and the number of years that you want to continue working. Some owners want wealth; some want a business to pass on to the next generation; some want to create a legacy that survives them. There is no right or wrong answer, but it is a question that ownership must answer in order to drive the business to the end desired result.
  • Describe what your business must look like in order to accomplish what you personally want from the business. Draw a picture – at least in your mind – of what it looks like, what the people who work there look like, what the customers the business serve look like.  How large must it be?  What position does it fit in its geographic community?  Should it expand into other communities? What products and services should it offer?
  • Describe the business’ core values. One way to help describe what you want the company to look like is to consider what the core values of the business are today. If you were to ask current customers to describe why they do business with your company or what they like about your company, what would the answers be? Perhaps, you should even consider personally calling some of your customers if you are not sure of their answers. Consider how the community is better because your business is in it. Then create a list of the business’ characteristics and its core values as recognized by customers.
  • List the markets the business currently serves. Analyze what percentage of the business volume comes from each type of market segment – track new construction, custom home new construction, residential replacement, residential service, commercial, etc. Are the margins what you desire from each segment? If not, can the margins be increased? If not, is that a market segment the business should no longer pursue? If the margins are good in a particular segment, ask if the margins could be increased. Then, dream about how to increase that market segment.
  • List the strengths and weaknesses of your business. Determine what is unique about your business. Is it the marketing, the employees, technical expertise, the difficult jobs no one else will tackle, broad offering of services? How can the business, through its marketing and training, capitalize on its strengths? What are the business’ weaknesses? How can the weaknesses be shored up?
  • List the strengths and weaknesses of good competitors. If a competitor is doing something effective, analyze how that activity might be incorporated into your business. Describe how your business might give the process or activity its unique twist. Also, think about any weaknesses that a competitor is displaying. Does the weakness provide an opportunity to move into a new geography or buy out a competitor?
  • Visualize what other good retailers do and how their processes might be transferred and implemented in your business. One example: a locally owned retail electronics store was finding it more and more difficult to compete with the prices of big box stores on flat-screen TVs. So this business decided, it couldn’t match price, but it could out-service the big box store by guaranteeing installation within 24 hours. They are still growing and thriving today based on that strategic decision. Think about a business that you like to purchase from. Is there some aspect of their service, their treatment of you as a customer, their follow-up, etc. that could be incorporated into your business?


The strategic plan is a two or three page document that captures your dreams, hopes, and vision for your business. It should be revisited every year and revised when necessary based on how the business has changed or your viewpoint or situation as the owner has changed. The strategic plan describes what you want your business to be when it grows up and what you personally want from it. With the strategic framework, the annual tactical plan defines the how and when. 


The Tactical Plan

A tactical plan should be written every year after the strategic plan has been reviewed or revised if necessary. The tactical plan lists the company goals – revenues, costs, and profits that are required to accomplish the strategic plan. An annual budget is a part of the tactical plan not the complete tactical plan. In addition to the budget, the tactical plan describes the actions that the company must take in order to accomplish the budget and move it closer to the strategic vision of what it can be. 

For example, the tactical plan might list the goal of improving billable hours of service from 50 % to 62%. Then, it would list action plans such as implementing flat-rate pricing using tablets, training for technicians on how to offer accessories when on service calls, role plays during company meetings on how to talk to homeowner about replacing equipment rather than fixing. The tactical plan also lists when each action item will be completed or whether the item is on-going and who is responsible for making it happen.

The tactical plan should be no more than five to 10 pages and includes a marketing calendar and a training calendar. Once the tactical plan is complete, it must be measured against the strategic plan. Does the tactical plan bring the strategic vision closer to being? The answer will determine if the tactical plan is ready to implement. 


Some business owners do a budget and some complete a tactical plan for the business, but very few actually take the time to dream about what the business can be. So for the holidays this year, I am wishing each of you some warm slippers, a mug of hot chocolate and some time to dream!

Visit Service Roundtable.com for more information on planning for your business! 

Topics: Business Growth, Marketing, business culture, Management, Plumbing, hvac, learning, knowledge, communication, Sales, hard work, success building, business, business planning, strategic planning, business strategy, tactical planning

Posted by Vicki LaPlant on Dec 23, 2017 10:00:00 PM

Help Contractors Find Solutions Fast.

The Blog for Service Businesses

Sales, marketing, business, and internet tips for residential service business owners in Plumbing, HVAC, Electrical and Solar industries. 

Learn to grow your business with:

  • Marketing Tools
  • Business Resources
  • Hiring Advice
  • Industry Insight

Subscribe to Email Updates

Learn From Industry Leaders Service World Expo 2017