If you’ve been running your business for a couple of years, it’s probably due for some improvements. You might be tempted to stick to a formula that works for you. However, you must consult your business plan to revise and update your strategy to stay updated with ever-changing trends and developments. A solid business plan gives most businesses a 30% chance of growth and development. You must also treat it as a living document and give constant updates and attention to extend your business’s lifespan. Check out these signs to help you know when you must update your business plan.
- Significant changes in your business’s finances
If your business’s financial situation changes and you strongly consider sourcing funds or refinancing, you must update your business plan. The document should include your most recent expenses and potential business opportunities available. You should also update your business plan to give a forecast of your cash flow, as it would better inform investors of the expected amount of cash that will come in and out of your business within a period. It is also advisable to revise your business plan when entering into a new financial period.
- Adapting to a new market
You must update your business plan, especially when your business grows and expands into new areas and territories. For example, if you have decided to open a franchise in a new town to penetrate new markets and audiences, your business plan should reflect that business strategy. After scouting for profitable ventures on directories such as Franchise Direct, you should include the franchises you are interested in purchasing within the revised plan.
As your business grows, your business plan should also include how you plan on catering to and meeting the needs of your new clients and how you plan on ensuring that your business continues to grow. A thorough and updated plan will help you set goals and find the best strategy to meet your business goals.
- Stronger competition
Whatever industry your business might be in, it is bound to face stiff and serious competition when it comes to being the number option for customers, old and new. Anytime your main competitor changes its business strategy or an emerging business enters your industry, you must consult your business plan. Doing this would help you identify areas you can change to
outshine any new or strong competitors ready to take your customers from you and slow your growth.
- New products or services
If you are introducing new products or services into your offering, you would have to rethink your business strategy, which means consulting with your business plan. Your plan should give you an idea of how these new products or services can impact your profitability.
So, when is the best time to update your business plan? The truth is, it all depends on you and the nature of your business. It might be annually, monthly or quarterly. Whatever time you choose, ensuring that you regularly update your business plan is one step to guaranteeing your business’s success.
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