Starting a business is one of the most challenging things in life. But the rewards of a successful business make every effort, time, and investment worth it in the end. It allows you to break from the monotony of the 9-5 life and live your life to the fullest.
One of the most important aspects of running a business is creating a business plan. You need to create a plan to show stakeholders – partners, creditors, and investors – that you are committed to making your business a success. It also serves as a guide to steer your company towards long-term success.
A common question among new entrepreneurs is should the business plan remain the same or change over time. Here you will know whether a business plan is set in stone or written on ice.
Do Business Plan Change Over Time?
The answer is a resolute yes.
No business is immune to changes. Customer demands change over time. Moreover, the government also introduces new regulations that may impact the business. Supply chain disruptions can have a negative impact on business operations. Another risk is that the business may face new challenges such as the COVID pandemic that results in a slum in sales.
In fact, one of the constants in any business is change. And as the world changes, businesses need to change their approach as well.
A business plan must be updated as the business environment changes. This is important to ensure that the business can survive and even thrive in a changing environment.
When Should You Change Your Business Plan?
1. Change of Business Location
You need to update your business plan when you change the location of the business. This requires you to update the plan by asking your business plan writers to create a new market analysis report identifying opportunities and risks in the new location.
Each location has specific factors that should be analyzed. The business plan must contain a new SWOT and PESTEL analysis based on the new business location.
2. Failure to Meet Sales Projections
Another situation when you may need to change the business plan is when your company cannot meet the sales projections. You should ask your business plan writer to update the plan if the sales were not as per projections. This can be the result of new technology or a competitor disrupting your business operations.
It will require the business plan writers to recalculate financial figures based on the new sales projections. The breakeven point and profit or loss figures will change due to the revised sales projections.
3. New Business Partner or Owner
A business plan must be updated if a new owner has bought the company. The plan must also be updated if a new partner has purchased shares of the company. Again, the financial section will need to be updated based on the changing circumstances.
4. Disruptive Innovation
The term disruptive innovation was coined by Harvard professor Christensen Anderson for changes that significantly affect the existing market players.
Disruptive changes like a new invention or competition can make the existing business model outdated. You will have to hire business plan writing services again to update the plan. It is important to create a strategic plan to deal with disruptive changes. This may include coming up with improved products and services and revising the profit and loss figures.
5. Secure New Financing
Are you thinking of securing additional funding from creditors or investors? You need to update your business plan to justify the need for funding.
Your business plan writers must justify the need for the additional funds. The plan must explain how the funds will be utilized. Moreover, it should also explain the benefits for stakeholders for providing funds to the company.
Business plans must change according to the changing environment. Businesses that embrace change and adapt their business strategies according to the environment succeed.
Business leaders should embrace change and adapt their strategies. You may not control the winds of change, but you have the power to adjust to the changes to thrive.
While change is seen as a negative thing, it can be good for the business as well. Often, the changing environment also presents new opportunities. You need to have a keen eye to identify the opportunities and make the most of the changes.