Your business is the lifeline to your success. You depend on your business to build your career, pay your bills, provide a steady income for your family, and plan a pathway for your retirement. Not too much to ask, right?
In order for your business to take care of you, you have to make sure that you are taking care of it too. So many business owners think that once a business plan is created, it’s set in stone, never to vary.
While a business plan does set the foundation for the initial vision of your business, it can be altered and updated as your business changes and grows.
Are there signs that it’s time to update your business plan? Absolutely. Here are some things that tell you it’s time to update your business plan.
Your Revenue Has Declined
When your business starts to decline in revenue, it may be time to update your business plan. What worked for you in the past may no longer work for you in the future.
It’s hard to imagine that a business that has great success can plummet so suddenly, but it’s true. Revenue, customers, and the economy all play a role in the success of your business.
If you started your business plan with a yearly revenue goal that is no longer attainable, it’s time to adjust accordingly.
Update Your Business Plan When the Goals Has Changed
If your short-term and long-term business goals have changed, that needs to be reflected in your business plan as well.
Let’s be real. When you started your business, the sky was the limit. Your business plan was based on a lot of theories and goals. Besides the research that you had done, you had no real, concrete facts on what to base your business plan on.
While you created one with the best intentions in mind, life happens and things may have caused that business plan to change. This can go one of two ways at this point.
First, your business plan needs to be altered because your business is so much more successful than you ever imagined. Or it needs to be altered because it hasn’t gained as much popularity as you thought it would.
Either way, the bottom line remains that your business plan needs to be updated. Updating your business plan due to success is a great problem to have! Not planning enough in the beginning for launching a successful business is a plan that can easily be altered.
On one hand, it can be a bit challenging to update your business plan due to lack of business growth. However, it’s still doable.
You Need More Manpower
If your business is looking at acquiring any new employees or managers, it’s time to see how they are going to be figured into the current business model.
Hiring, training, and paying new employees can alter the outcome of your business plan because those are factors that weren’t considered in the beginning when it was created.
Factor in costs such as wages, taxes, etc. in your business plan to ensure the continued success of your company. Adding an employee who earns $30,000 can be a big cost and you should figure that in your business plan!
New Laws are Being Implemented
Any time legislation passes or laws come to fruition that affects you and the outcome of your business, it’s time to revamp that business plan to be in compliance.
Nothing is worse than having a business and finding out you’ve been operating in a way that you shouldn’t have been due to laws being passed that you were unaware of.
Take the time to stay up on the current legislation and laws and make certain to alter your policies, procedures, and plans as necessary.
Update Your Business Plan
A business may have changed or business changes may need to happen. The key is to take a long, hard look at your business plan when these changes occur. This is to ensure that it’s still on track with what your goals are.
Remember that your business plan can be flexible to you and your business needs. So don’t be afraid to take a look at its structure and decide to make some changes.
Prepare for the continued success of your business by ensuring that your business plan is the best possible for you.