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.
The strategic planning process helps small business organizations to identify their available resources and hence plan on how to appropriately and effectively utilize the resources for maximum benefit of the small businesses.
Besides, it provides a framework within which a small business organization can operate so as to realize both of its short-term and long-term objectives.
Meanwhile, Small business is a kind of business entity that is owned privately by an individual or a group of partners and that which operates with a small number of labor forces.
Small business may include privately owned partnerships, sole proprietorships and corporations.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.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.Likewise, the managers engaged in the development of the strategy implementation evaluation process (PEAR), Situation Implementation Effectiveness Evaluation (SIEE) model and matrix based on the academic work of the strategyevaluation by Johnson, Scholes and Whittington in 2008 have also reported that these new tools and processes are helpful in their understanding of how to evaluate thestrategy and their implementation effectiveness.Their reflection and learning point to 'change' and new knowledge in terms of both academic and functional knowledgewhich has benefited both business stakeholders and related community have been documented.The last step calls for measures in potential threats alleviation or seizing available opportunities (Center for Management and Organization Effectiveness, 2010).While performing strategic planning, it is important to review the small businesses’ past performance, the current and the projected or expected future performance.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.