Updating your business plan ensures that the information is current and in line with your organization’s changing goals. Here are eight situations when you need to update your business plan.
It’s Been Over A Year Since You Updated It
Your business plan is never finished. You should constantly review and update it. How often you update is up to you, but it’s a good idea to schedule regular periods to review and update your plan.
For example, you might do a minor review quarterly and then a major review at least once a year. This will allow you to see what has changed and if there are any old items.
You Have Added New Products Or Services
Your company’s products and services are an integral part of your business plan, so when they change, your business plan must change as well. This is because adding new products or services changes your sales projections and how you manage company resources.
Competition Is Changing
Paying attention to what your competitors are doing can help you determine when it’s time to change your own business strategy. For example, suppose a competitor has copied your product or service or is undercutting your price. You need to take the time to review your strategy and decide if you want to respond.
The Market Is Changing
Whenever there are changes in the market, you should adjust your business plan accordingly. For example, businesses that depended on in-store traffic to drive sales had to make adjustments during COVID.
Current issues such as fear of inflation or recession may affect a customer’s ability to purchase your product or service. Any factor that could negatively impact your income warrants a review of your business plan.
Have You Experienced Financial Change?
It’s a good idea to update your business plan whenever you notice any significant financial changes, good or bad. For example, landing an important client is a big deal. But serving that customer may require more time and resources than your team initially planned.
Similarly, if a long-term customer cancels a large contract, it will affect your future revenue. Each of these scenarios requires you to review your business plan and develop a new strategy.
You Are Going Through Internal Changes
Internal changes may also require you to update your business plan. For example, let’s say you move to a new technology platform to make your business more competitive. Or maybe you’ve recently changed suppliers to deal with supply chain issues.
Losing a key member of staff can also be a huge blow to your business. Perhaps this person had strong relationships with many of your customers, so you need to rethink how you will run your business without them.
Your Company Has Grown A Lot
When you started your business, it may have been just you and one or two other employees. If your business has grown significantly since then, it’s time to review your business plan.
And when you update your business plan, it’s a good idea to include several key employees. Getting buy-in from your employees helps ensure that the implementation is successful.
You Are Trying To Get Financing
If you are trying to get financing from a bank or investor, you will need to provide a detailed business plan. When an investor looks at your business plan, they need to understand what your company does and your future financial projections.
Your Business Plan Should Include:
- An executive summary.
- Description of your total available market.
- A description of how you intend to use the funds.
It might sound complicated, but it’s not if you follow the free business plan template
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