If you are reading this article, you probably already know that having a business plan is critical to the success of your business. You also already have some form of a business plan documented. You also probably are already in business using your business plan document. And you probably are familiar with this well-known phrase
“If you fail to plan, you are planning to fail” – Benjamin Franklin
Quick question for you then: when was the last time you’ve looked at your business plan document? It’s interesting and fun for a business owner to look back at your first business plan, almost like old photos, and reflect on whether those initial plans are working out so far. Now that you have worked within your business you likely know so much more than you did when you were starting out. More than being interesting and fun, looking back at the initial business plan is beneficial!
Next question for you: do you think of your business plan as a living document that you should continue to revisit over time? Experts say, ‘Yes, doing a business plan refresh comes with a lot of benefits’. While doing a refresh you get to understand what is working and not working; you get to correct some of your initial assumptions; you get to know the change the direction of the business and incorporate real numbers from your current work. Most of all it helps you prepare for expansion, you can create an improved plan with a clear course of action for YOUR business 2.0, or 3.0, and beyond!
So, when is the right time to review and refresh your plans?
Obviously definitely when the business takes unexpected turns or is underperforming with the financials. But even if things are going great or fairly well this exercise should be considered. Experts have different responses to this question however they generally recommend that business owners do a thorough update on their business plan at least once annually. Additionally, they recommend monthly reviews of the difference between the actual results you achieved over the course of the month and the planned results you had hoped to achieve.
Monthly updates need not be as comprehensive as your annual update; the major purpose being to see how you are doing with achieving your objectives and to make any necessary adjustments going forward during the rest of the year.
The industry in which a business operates is also a key consideration. If the industry is in the plateau or decline stage, the company may then need to change its operational structure entirely or compete in another industry as it may never do well in a declining industry despite a business plan refresh.
Key aspects of the business plan document that should be specifically revisited include: the Vision and Mission of the business, Products and Services, Sales and Marketing plan, Organizational Plan and Summary of Personnel, Financing Requirements and Financial Plan. More on this:
Increase your level of confidence in your business with a business plan refresh.
These need not be time consuming, perhaps you may choose to only revisit one or two sections in each refresh. You may also choose to present your current plan to an expert and allow them to help you will the review and revised documentation. Incorporating this iterative business planning mindset will greatly increase your business’ chances for great success!
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LeMaitre and Associates