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Working every day to generate strategic insights is critical to small business development. It’s also important to avoid these four strategic mistakes when developing a business development strategy, says Rich Horwath, president of Strategic Thinking Institute.

1. Confusing thinking with planning. Since thinking is hard work, it’s not uncommon for managers to fall back on strategic planning when attempting to shape the direction of their business. However, this ignores the importance of strategic thinking, which involves the generation and application of insights. Action: Provide managers with the knowledge base and terminology to clearly distinguish strategic thinking from business development planning.
   
   
2. Allowing budget to dictate strategy. Constricting the creative process of strategy development at the outset with a page of budget numbers can close off avenues that might fundamentally enhance the business in ways not previously explored. Action: Leave the budget numbers in the folder until your team has had the opportunity to comprehensively think through the business and generate strategic insights.
   
   
3. Lacking the discipline to say no. Strategy involves the intelligent allocation of limited resources. Too often, to minimize risk, we take cover in the status quo and don’t make any trade-offs. Action: Identify your resources — capital, talent, and time — and begin detailing how they are allocated, including your own time. Does this allocation appear different from past months and years? Does it reflect changing market trends and customer needs?
   
   
4. Employing a “bumper car” strategy. It takes time and effort to plan a sound business development process. Failure to do so can lead to an organization that mindlessly changes direction each time it’s nudged by a marketplace issue (a competitor’s action, customer complaint, short-term fad, etc.). Action: Invest in a process that is simple, concise, and effective. Set aside one day per quarter for a “strategy tune-up,” in which the team assesses key business issues and assumptions to gauge progress.