Featured article by Russell Emmental, Independent Technology Author
As your small business develops and grows, it becomes almost second nature to make assumptions about the aims of your enterprise. Without a clear plan, it’s easy to remain stagnant or follow the original intended direction to a fault. And how will you know where to invest time and money if you don’t know your current objectives and plan?
To help avoid this scenario, learn the top three reasons small business owners should develop and update their business plans.
1. Circumstances Change
We asked experts at Wimgo when they think the best time to update a business plan is. Some suggested every 90 days, others said once a year, and all said once a significant change happens — whichever comes first. While the time frame isn’t precise, it’s crucial to adapt your business according to your circumstances.
You had various ideals in mind when your business was first set up. Some goals will have been realized, while others will have been abandoned or postponed. Many factors contribute to this, and updated plans help you keep your business up-to-date.
It’s worth considering the time when your business was founded: whether you started it during the 2009 recession or later, during the Covid-19 pandemic. These economic changes also bring different levels of competition for your business.
With new technology being developed daily, you may find your business needs to adapt to these changes to keep up with its competitors. It’s essential to note this in your business plan to ensure you constantly develop and have a timeline in place for this.
2. Continuously Communicate with Stakeholders
Your business plan acts as a strong method of communication between yourself as an owner and those who have invested in your company. It’s a way in which you can update those who have invested and convince others to also invest in your company.
Ensuring investors that your plan is updated periodically means that you’ll never be stuck for a response when asked for the next steps. You will already have a prepared elevator pitch, which will build your confidence in the company and improve investors’ confidence in you.
There are many ways you can better communicate with stakeholders besides re-sending your business plan every time. You can opt to summarize the plan, including sending recaps, newsletters, and your intentions for the future. While this isn’t a business plan per se, it is a more concise version, so your hard work is not wasted.
3. Avoid Time-Wasting
It’s easy to spend hours laboring over a plan, from color-coding to including charts and graphs of ideas that are never used. A simple alternative is to continuously update the plan in three-month chunks with “smart goals” which are easily achievable with time restrictions. Having deadlines attached to each goal means that these are more likely to come to fruition, whether introducing a new product or increasing investments.
This avoidance of wasting time also means that you can assess what works for your company and what doesn’t at intervals. It also means you’re not following an outdated business plan which no longer serves you or your company. You can consider that this extra time can be put towards realizing ideas, training staff, or even putting new goals into place.
Improving Your Company with a Plan
Ensuring your business is making a profit and is constantly growing is your primary objective. Yet, this is only possible when you continuously develop the company, whether that be new products, staff, or ideas.
To understand these changes yourself and convey them effectively to stakeholders and employees, it’s crucial to update your company’s plan alongside your circumstances. When everyone is on the same page, your business can thrive.
