Step 3 to Build a Better Business – Revisit Your Business Plan

Posted on Jun 25th, 2009 in 30 Steps to Build a Better Business, strategy and planning | no comments

Remember that thing you did when you first started your business? You know, that big detailed document that mapped out all the plans you had for your fledgling enterprise?

Here’s a question for you…when’s the last time you looked at it?

Quite a few business owners spend a lot of time, effort and even money up front creating their business plan, but once it’s done, the business plan sits on a shelf somewhere collecting dust, never to be visited again. Like any other plan, a business plan is meant to be constantly tweaked and updated to reflect the current environment and the current situation of the business.

Mark It Up

Reviewing your business plan doesn’t have to be an extremely time intensive activity. The first step is to take it out and just read through it. As you read, you may find that your business is in a very different place than you predicted in your original business plan – you may be off track or you may have surpassed your original expectations. Don’t get too sidetracked by comparing your original plan to where you are now, however. But as you read through the plan, ask yourself, “Does this still make sense”? If it doesn’t, jot some notes down in each area of the business plan (e.g., Product, Operations, Marketing, Financials) that describe what you would feasibly want to accomplish for your business in that area within the next 12 months. I suggest a 12-month time span, because since circumstances change much more often in a small business, shorter planning horizons make more sense than 3- and 5-year plans used by larger companies.

Update It to Reflect Today’s Reality

Update any assumptions or research in your original business plan with more up-to-date information. The competitive landscape may have changed, new technologies may have been introduced, your funding needs may be different. Make sure the notes you jotted down take into consideration the most recent facts and the current environment.

Timebox It

The next step is to make the plan more actionable. Go back to the list that you wrote of things you want to accomplish in each area of your business and give each a rank of either: ‘Absolutely must get done in the next 12 months’, ‘Should get done in the next 12 months’, or ‘Would be nice but doesn’t have to get done within the next 12 months’. Beginning with the goals that absolutely must get done, list the steps or tasks you’ll need to complete to accomplish that goal. Finally, put a date when you will realistically begin working on each of these tasks, and a date by which you could realistically finish each task. When you’re finsihed, you’ll have a very basic version of an annual business plan. To help you with this, you can use a really simple spreadsheet like this.

Now you have a formal, documented business plan that is updated at least once a year, and a simple, easy-to-manage annual plan that you can use  to manage your progress more regularly. Of course, it’ll be up to you to make sure that you actually do monitor your progress and make updates to your plans as needed. You can use online task managers like Todoist or Remember The Milk to set up reminders to yourself to complete these tasks.

Related Posts

1. Step 30 to Build a Better Business – Plan Your Next Steps
2. Step 16 to Build a Better Business – Set Aside One Day a Week
3. Step 18 to Build a Better Business – Document the Basics
4. Step 14 to Build a Better Business – Prime the Pump for Leads

Sage Small Business Solutions provides inexpensive infrastructure solutions for small and microbusinesses. If you're interested in improving your small business, or implementing techniques discussed in this article, find out how Sage can help.

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