Writing a business plan is one of those skills that improve with practice. The first or second time you may feel you elaborate a little unsure of what you really do have value.
Great entrepreneurs who have already started several companies are accustomed to writing business plans factly, and each one is better than the last; but not only they can get.
You can also improve.
In fact, if you’ve started a business of any kind, you should ask yourself the upgrade your business plan.
This is usually easier to start from scratch to write. Instead of trying to figure out what the basic concept of your company, all you have to do here is to decide what should be changed.
Why is it so important a business plan
Design a business plan before starting your venture it is what will help you create a mechanism to generate revenue and profits ; is the brain of your business will think what strategies are what you use to attract customers and succeed.
With it, you can analyze your potential buyers , investigate how much money you need to raise your business and analyze your competition to differentiate them and win sales.
Still you do not know how to write your own business plan? Check out our article How to design your business model step by step which easily learn to develop one easily.
7 Reasons to upgrade your business plan NOW
Like I said, if you are already the proud owner of a business (either online or physical), perhaps it’s time to change some of your strategies.
Here are seven reasons why you should think about updating your business plan .If you’re in one (or several) of the following situations, this is the time to renew your plan.
1. You start a new financial period
Are you going to open a second store if you have a physical trading? Or maybe you reinvertirás the benefits of your current company to open a new business? Anyway, if you’re starting a new financial period, you should update your plan.
Note that this new economic era is like a horizon full of other possibilities open to you, so you need to change your strategies.
If your enterprise is in a constantly changing industry, choose to redo your business plan every year, every six months, or even every month.
2. Need financing
When funding is sought in others as investors or venture capitalists, they are not going to give money just like that: they need to present a report with all data and figures possible to investigate whether to participate in your project (or not) .
And this is where the business plan plays an important role.
You can not make these people the business plan that elaboraste before launching your venture for the simple reason that this plan is obsolete and does not have your current numbers.
It is, therefore important that you update, detailing how your business has grown, what benefits and income get each month , and shaping all economic issues that may be relevant to these new investment partners.
3. Significant changes in your market
Perhaps some trends or fads among your different customers to yours have been consolidated. Or the product you sell is outdated and there are new items to replace yours.
You may even tastes of your customers have changed, and you need to redo the profile of your potential customers.
This means that open new pathways in your industry, and an indicator that you update your business plan to see where you should start changing your strategies established.
4. The emergence of other competitors in your industry
Just as one day you decide to open your business, and you become direct competition from other companies in your industry, another entrepreneur may also appear and begin to bring all your customers to your field.
Surely this new competition is watching and studying your customers to know how you can win them and so you steal them.
Even the possibility that those competitors who already before you in the market – and you won the battle to open your business – have changed their strategies and now you are eating the ground.
This is another major reason to update your business plan if you do not want to risk running out of customers (without income).
5. Develop and launch a new
If your brand or business develops or is about to launch a new product, technology or service, you need to modify your plan.
A new product or service also means other news: perhaps customers so far not recibías, new strategies to promote yourself in different sites that you were so far …
6. Your company has achieved a goal
Remember when you started your business if you marked any targets? For example, to reach a million dollars in sales , have 20 employees at your service, your company or change your home office to a separate room.
These are all situations that can put your business inside out : if you are generating more income than you thought, surely you should hire an accountant more, and that means another salary, other employment insurance for him …
Or if you need to move to a more professional office, you have to deduct expenses such as office rent, payment of electricity, transportation there, etc. the benefits of sales.
They are expenses or circumstances that initially were not included in your first business plan, so you should update it and keep it running everything fit correctly to keep growing.
7. Your old plan no longer reflects reality
Perhaps the last time you modified your elaboraste or business plan , did a regular job and do not go all well.
Or maybe things have changed faster than you thought. In any case, if you feel your plan is no longer relevant, or that does not fit the reality of your business, you must redo and rewrite one that fits best.
It is important, however, that an update of your business plan will not become an automatic task , limited only to focus on the numbers of your most recent sales.
Instead, take your time to check what was actually reflected in your previous plan, still it continues to function or if it is necessary to modify some issues.
Are your profit margins are higher than you expected? Then start planning how to best take advantage of any extra money you generate.
Have you opened a second trade but not going as well as you expected? Now is the time to think what could have happened , and change.
Large companies have strict routines that require changing their plans every year, every six months or every three months; and all that information and changes in strategy is what really gets to continue staying where they are .
Therefore, the best way to ensure that a year from now throw look back and contemplate with satisfaction and pride that everything went as you wanted is planning and changing your business plan now and whenever you need.
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