When should I update my business plan? It is the question mostly every entrepreneur asks themselves. The answer for this question is “Always”. The more you will update your business plan time to time, the more you will be able to track results in a more successful way. The things always change; update your business plan in order to be aware of the results of your set goals and objectives.
MANAGING AND PLANNING PROCESS:
The annual update:
It is necessary, to update your business plan at least once in a year. Keep your old plan in front of you and take a fresh look.
- Talk to your customers and potential customers: Go through your value proposition. Check the needs and requirements of your customers from your product or service.
- Market segment: It is crucial to give time to your market segmentation. At the time of updating a business plan, try to come up with new market segmentation, this will give fresh view to your business.
- Larger potential market: Conduct in-depth research about the changing trends and technologies that might occur in your specific business industry.
The monthly update:
The last and the most important section of the business plan, financial projection, require monthly update, as the books of accounts close after every month. Be careful and kept every record of the planned and actual results for your sales, profits, and cash.
- For monthly update of the financial statements, always maintain a table that shows variance between plan and actual results.
- Beside, financial projections also go through the milestones, assumptions and tasks that are measurable.
EVERY BUSINESS PLAN IS WRONG: Give your plan a fresh look. You have to realize your business plan is wrong. Remove all the goals and objectives that you have already achieved. Adopt new and fresh strategies that help you to move forward.
A GOOD BUSINESS PLAN IS NEVER DONE: A professional and proper planning process can never be done. It requires review time to time review and revision.
Updating a business plan is must for the success and growth of a business plan. Don’t think your business plan a useless document that is just made in order to cover under dust. Review and update it monthly or annually because a good business plan can never be done.