Do I need to review or adjust my business plan regularly?
Every good entrepreneur has a plan. Sometimes no more than a few scribbles on the back of a beer mat, sometimes a well-written business plan. Depending on the phase the company is in. However, we don’t have to tell you that a company is not static. Technological developments, new customers, growth, and changes in the market impact your business and operations. Yet one of the most frequently asked questions is: ‘Should I regularly evaluate or adjust my business plan?’. The answer is simple: ‘Yes’. In this article, we will tell you why.
A current strategy
A good and up-to-date business plan is the foundation for your business strategy. It gives you a grip on your company and on the future. You can easily make adjustments when necessary by regularly checking whether the formulated objectives are still correct, whether expectations have been fulfilled, and which market developments affect your company. Updating your business plan is, therefore, also a good reality check for your company. For example, ask yourself why you didn’t achieve your sales targets or why one product group is doing a lot better than the other. This information can tell you a lot about operational management and the steps you need to take. Just writing a business plan to get financing is, therefore, a waste. Instead, use it as a roadmap to the future of your business by regularly checking it against reality.
Realize growth
As an entrepreneur, you are always looking for opportunities to grow and develop your business. This means that you must be well informed about your company’s current position, the trends and developments in the market, and opportunities that are not yet being exploited. Opportunities that you can identify by conducting customer satisfaction surveys, comparing yourself to your competitors, and researching potential new customer groups. In this way, you identify new growth opportunities that you can translate into your current business plan.
Adjust business management
Simply seeing new growth opportunities is not enough. By translating them into your business plan, you force yourself to think about what this means for your business operations. For example, you may have to invest in extra staff to increase the service level or to be able to offer new products. Or maybe it is wise to look for collaborative partners to achieve certain goals. In other words: by structurally identifying opportunities and developments and translating these into an up-to-date business plan, you make decisions based on facts and concrete insights instead of ‘your gut feeling.’
The grip on finances thanks to business plan
When evaluating and updating your business plan, you also gain insight into your company’s financial health. This way, you can immediately check whether you have sufficient capital to finance new products or services and whether your revenue model is still sufficient. If you need additional financing to achieve your new goals, you can immediately benefit from your efforts. After all, you now have a complete and up-to-date plan that you can present directly to your bank or another investor.
Do you need help evaluating and/or adjusting your business plan? Maven Business Plans is happy to assist you.
