Is It Time to Update Your Business Plan?

Is It Time to Update Your Business Plan?

Determine the right time to update your business plan.

Creating your first business plan may have been a chore, but updating a plan is easier and more fun for business owners. During your start-up, you likely had little direct experience and no track record or historical information, so many of the marketing and operational forecasts were educated guesses. Now that you have some experience and a track record, it may be time to update your plan to keep your business in line with your goals.

These situations may trigger a plan update.

A new financial period is about to begin. You may choose to update your plan annually, quarterly, or even monthly if your business is in an industry that is always changing.

You need financing. Lenders and other financiers need an updated plan to make financial decisions. These figures and details should be current and have accurately projected numbers.

New or stronger competitors are looking to your customers for their growth. You must decide whether to match their tactics or stick to your plan. If your revenues will be lower, it’s important to have a plan to mark out the course of action.

Your company has crossed a threshold, such as moving out of your home office, reading $1 million in sales or employing 100 people.

You have had a change in management. New managers should get fresh information.

Your old plan isn’t relevant anymore. Maybe things have changed faster than you expected. If your plan seems irrelevant, redo it.

While you focus on perfecting your business plan, be sure to secure your business insurance. Visit the team at CAV Insurance to get started on your tailored policy today in Wellesley Hills and neighboring cities in Massachusetts.