Why you should be regularly reviewing your business plan

Planning is key to the success of your business. It allows you to stay ahead and respond reactively to challenges that you face. As a tool, a business plan can help you to collate your strategy into a single place, which allows you to see your development moving forward. Developing your strategy, you can look to implement your business plan based on facts.

To show where your successes and failings are

Reviewing your business plan can help you to see where your business is succeeding and where it is failing. Looking at the way in which you approached your business plan last time and the estimates you made within it, can present you with a good sense of perspective as to how your business has changed and what may have affected it. This can then inform the way in which you create your new business plan.

To be reactive to the past

When you first put together your business plan, your business could have looked very different from how it looks today. You may have made a big change, like moving premises and upscaling, or you could have seen a change in staffing. Whatever change has happened within your business since your last business plan, it will affect the way in which your business evolves. You can adjust your estimates both positively or negatively in order to create a plan that greater reflects where your business is at. Knowing how your business has developed will help you to plan for the future, allowing you to respond to any changes that may emerge.

To help you be reactive for the future

Just as you need to be reactive to past events, you can also be reactive to the way in which you move your business forward. If there is something significant in the pipeline that you need to be aware of, you can consider how it will affect your business in a revised plan. If you’ve employed new staff or invested in new machinery, then you can factor in the greater financial cost as well as the new opportunities they bring

When should you review your business plan?

There are specific times which require you to make changes to your business plan. If you’re moving premises, or investing in new machinery, or a new competitor enters the market, then it is worth returning to your business plan to see how this will affect your business moving forward. Positive or negative, all significant events should be taken into account, and will allow you to reconsider how your business will adapt and has changed in the past.

When you’re looking for investment, a lender will most likely expect to see an up to date business plan in order for them to feel confident about where your business is heading. Preparing thoroughly and showing that you are well aware of the direction your business is going will help you to demonstrate your competence.

When you put together your business plan reactively, you can look to develop a strategy that will protect your business in the future, whilst also taking a realistic look at where your business currently is, and how it can develop moving forward. Reviewing your plan regularly can help you to adapt the way that your business is moving forward at intervals that reflect changes that have been made.

For more guidance on your business plan, contact our lovely team at business.inspiration@bishopg.ac.uk.