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The Importance of Updating Your Business Plan
| Guest post by: Ellisa Brenneman |
Article Overview: The importance of updating a business plan is simple: it creates a long-term strategy for your business, while alleviating the stress and headaches of operating a business if action is continually implemented. There are important factors to consider when revising and updating a business plan.
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The Importance of Updating Your Business Plan
Business plans are the homework that just won’t end. Imagine being in school and being given an
assignment to write a term paper. You
have an outline of what’s required, a recommended format that you should use,
and a timeline in which completing it would be advised. Here’s the rub: what if that assignment is never done. The due date comes and goes and it constantly
has to be redone and revised and updated.
The importance of updating a business plan is simple: it creates a long-term strategy for your
business, while alleviating the stress and headaches of operating a business if
action is continually implemented.
There are important factors to consider when revising and updating a
business plan. The following outlines
the necessary steps in perfecting that business plan you filed away months – or
even years ago.
Reminisce: Remember to look back at your initial
business plan at least once a year. Perhaps your
business’ target market has changed.
Maybe your customers are purchasing one particular product or service
more than others. And, of course, one
must always look at new industry trends – this in itself can have a positive or
even devastating effect on a business.
Small business owners must continually refresh their business plan by
focusing on the aforementioned elements when reevaluating the business plan’s
content.
Financial Updates: A financial analysis should be updated monthly. Entrepreneur magazine
eloquently puts it: “Have a monthly
review of the difference between planned results and actual results for your
sales, profits, balance and cash.” A
solid, well thought out business plans should have monthly milestones,
assumptions, and tasks.
Another reason to update a business plan: every small business could use more money at
some point. An outdated plan will not convince any borrower – or potential investor – to fund your
business. It makes you, as the
entrepreneur seem unprepared and unmotivated in staying current with new market
trends, financial projections, and customer feedback. Notably, changes to the management team and competition
are just as significant. Believe it or
not, a business’ competition will at some point increase, decrease, or elevate
depending on the climate of the market.
Fully evaluating and analyzing competitors is essential to understanding
the market and what is needed stay ahead of competition.
Evolution: Finally, if your business is changing,
evolving, or adding to its line of services or products, it is absolutely
essential to renew the product and services description section of the business
plan. With the constant fluctuation of
the market, small businesses are adding or taking away products and services in
order to meet the needs of their intended market segment.
As the company’s vision continues to evolve, the business
plan becomes a reflection of the business’ personnel, mission, and
philosophy. However, in order to
properly convey a company’s newfangled identity, management team, or other core
values, the business plan itself must evolve as the business’ does. Both go hand-in-hand.
Tools: It’s a poor carpenter that blames their
tools. Not everyone can feel truly
qualified when it comes to writing up their own business plan. There are a few options here to make sure
that you’re not going in blind to the formatting, requirements, and structure
that may be demanded of your document.
Some seek the help of mentors who have written their fair share of
business plans to review and advise on the plan that the entrepreneur is
writing. Some outsource the entire
endeavor to third party firms or even MBA students off of CraigsList who are looking for a few
bucks. The happy medium can sometimes
come in the form of tools from companies like Palo Alto Software. Their Business Plan
Pro software solution has been the tool of choice for many a start-up
company. They also run a very
informative website called Bplans that
they use to offer basic advice while highlighting their software’s services.
Business plan updating has become so pertinent to a
business’ long-term success that colleges and trade schools are offering courses
in this particular subject.
Entrepreneurs must recognize that paying close attention – as well as
constantly altering and updating the content and past performance or projected
financials of a business plan – is vital to not only the company’s future, but
ultimately its sustainability and growth in the marketplace.
Quality in Marketing: You must start with these 2 definitions
12 Deadly Mistakes To Avoid On Your Web Site According To Your Strategic Thinking Business Coach
Business Plan Basics
How the perfect marketing plan would work
The Importance of Websites in the Overall Marketing Mix
Article Tags: angel investors, business plan, business plan consultant, business plan consultants, business plan service, business plan services, business plan writer, business plan writers, business plans, custom business plan, custom business plans, entrepreneur, entrepreneurial, entrepreneurism, entrepreneurs, ethos 360, ethos 360 solutions, ethos business solutions, ethos360, ethos360com, small business plans, venture capital, wwwethos360com
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About the Author: Ellisa Brenneman RSS for Ellisa's articles - Visit Ellisa's website Ellisa Brenneman started her career, after receiving her Bachelor Degree from the University of British Columbia, with the Canadian government merging academic rigor and business savvy to produce and disseminate research findings. She has been published multiple times in scientific journals for her research findings. A born entrepreneur; her zeal for entrepreneurism soon took hold. She's started green businesses and has vast experience managing public, media and investor relations for small-cap public companies. Ellisa is the President of Ethos 360. Ethos 360 provides entrepreneurs with affordable one-on-one coaching, business growth consulting, custom business plan writing, branding and capital raising services so they can launch and grow their businesses. Visit www.Ethos360.com for additional information, email info@Ethos360.com or phone 503-501-2444 to schedule a free consultation. Click here to visit Ellisa's website   Memorandum Template 1 Memorandum Template 2 |
Related Forum Posts
Business Innovation
- Hi Simon
If you can finish off the Business Plan and think about your strategic direction or how you are going to use your product to convince people it's a great idea, it will set the foundation for your programming project. You see, when you are looking for funding you will need a Business Plan and Strategic Plan that will convince companies to invest into your new idea.
Has anyone achieved this idea before using another industry besides health and fitness that you know of?
You should also design some mockups as a "preview" for your programming project. This will also help reduce your programming costs as everyone will know exactly what you want if you have detailed mockups already completed including any functionality you require.
Starting mockups for websites and software applications on paper is the best way if you're not a guru in graphic editing software.
New Small Business Topic
- Hello everyone,
I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section?
Here's a list of what we currently have:
Angel Investors
Branding
Bank Loans
Business Coaching
Business Plan
Franchises (New)
Insurance
Legal
Marketing
Public Relations
Sales
Small Biz Loans
Venture Capital
2007 Goals
- 1. Web site complete, fully operational
2. Revenue stream from both individual and corporate
3. Business Plan complete
4. Full marketing strategy complete and implemented
My entry
- 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read
- this is a fascinating book about the history of Business theory, and I'd recommend it to anybody.
2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto.
3. PADI: The Business of Diving Book
Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Re: Is A Business Plan A Waste Of Time?
- Business Plan or generally work plan (to do list) improves the quality of my work at least 4 times. I have seen the positive results of planning and focus in my online business. And I know from my past experience how uneficient your business can be when you are not doing planning.
So I agree that there is a relationship between entrepreneur success and planning.
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