The Difference Between a Plan and a Strategy
Lessons for Success As Startup & Development-Stage Venture Executives
At Digital Asset Monetary Network, Inc. (DigitalAMN), we often see early-stage founders blur the line between a plan and a strategy. While both are critical for success, confusing them can create pitfalls that derail any size company’s growth. And don’t worry… our team is sometimes guilty of this confusion too!
Inspired by John Romano’s LinkedIn post in the Wealth Builders Society (WBS) and Marc Sniukas’s thought-provoking insights, let’s break down why startups need both—and how to use them effectively.
The Fundamental Difference
Marc Sniukas characterizes it best: “A plan is not a strategy.” A plan focuses on the “how”—action steps, timelines, and responsibilities. A strategy, on the other hand, is the “why” and “where”—the vision that guides decisions, even when the unexpected arises.
Plans tell you what to do. Strategies tell you why it matters.
Why Startups Need Strategy First?
John Romano, Senior VP at DigitalAMN, highlighted six reasons executives at startups and development-stage ventures can’t afford to skip strategy:
- Direction and Focus: A strategy aligns efforts and ensures everyone is moving toward the same goals.
- Resource Allocation: Startups have limited resources; strategy ensures critical areas get priority.
- Competitive Advantage: Strategy helps founders define their unique value and stand out in the market.
- Risk Management: Anticipating challenges and mitigating risks becomes more effective with a strategy.
- Performance Measurement: A strategy provides metrics to track progress and make informed adjustments.
- Investor Confidence: A clear strategy demonstrates that founders have a well-thought-out growth plan, making investors more likely to support them.
How to Get It Right
Drawing from Marc’s and John’s insights, here’s how founders can develop and balance both:
- Start with strategy: Define your vision, your “why,” and how you’ll win.
- Then build the plan: Create a flexible roadmap that supports your strategy but can adapt to change.
- Remember, the market shifts. Strategy keeps you on course; planning adjusts to the winds.
Why It Matters
At DigitalAMN, we understand that strategy is more than a tool for business—it’s an equalizer. By helping early-stage founders, everyday entrepreneurs, and novice investors navigate the capital markets, we’re building a community focused on equitable opportunity and sustainable success.
Are you ready to think strategically and build a roadmap to success? Join the Wealth Builders Society (WBS), where we empower visionaries to take the next step in their journey.
Join the conversation: **************WBS LinkedIn Group.
