Can a business plan really help your business every day?

Writing a business plan is a bit like planting a garden. It’s not enough to simply do it and then forget about it. If you want your flowers and plants to blossom and grow, they need to be nurtured, protected and given just right amount of water and light...

The same goes for your business plan, once you’ve established your fundamental goals and objectives you need to revisit these on a regular basis to make sure you are on track, or update projections if things have changed. This doesn’t mean you have to re-visit your business plan on a daily basis, or you’ll be guilty of over-watering. Nor should you spend so much time thinking about where you want to be in 12, 24 or 36 months time that you forget about running your business on a day-to-day basis.

Most importantly, you should not use your plan to reprimand yourself and your staff when targets are missed or projections don't come true. Remember, your business plan may look like a simple route from A to B but there are likely to be numerous twists and turns before you get to your final destination.

 

Business planning to manage change

If you use your business plan wisely, then it won’t just be something that helps you get that initial loan or investment, but it will become something organic which helps you develop your business. It details your ultimate objectives (such as growing your market share, improving your profit margins, expanding into new markets or even selling your venture in the long-term), and outlines the steps you need to take to get there.

It is vital if your business is going to do anything more dynamic than just get by. You may not want to change but your customers and competitors will. The market you currently sell in will undergo changes whether you like it or not, and it is better to be prepared for them.

 

How will my business plan help me in my day-to-day business life?

Your main business objectives should be communicated and should create a common vision that you and your employees are striving to reach. You should all know what this vision is without having to check back with your original business plan. 

Similarly the role each individual has to play in helping the business achieve its objectives should have been made clear to all through general briefings and personal appraisals. Using your business plan to help everyone set communal and individual priorities should ensure that all business decisions are made within the same context. If a big proposal or activity doesn't conform to the business plan then its validity must be questioned.

 

Can I deviate from my business plan?

Your business plan should not be so rigid it stifles creativity and innovation.

The ability to act quickly on a good idea is what separates many smaller enterprises from their larger counterparts. If a new opportunity your business plan didn't foresee comes along, don't discount it because it's not in the blueprint.

Do, however, assess it in the context of your original plans. If it's taking your business in a whole new direction how will that impact on your other strategic objectives? Is it something that you really want to do or a mere distraction that will take resources away from where you really need them?

 

How often should I look at my business plan?

If you find yourself consulting your business plan every day to find out what to do next then you've written it wrongly. A business plan is not a to-do list. Instead it is a benchmark document you can use to compare where you wanted to be, with where you are and where you are actually going.

When you review the current state of your business you should pick out some of the key performance indicators you’ve highlighted in your business plan and assess whether or not you are on course.

If you are not, you need to understand why. Are there external factors you didn't take into account - perhaps a competitor launched something new? Or national disaster suppressed the feelgood factor and demand for your product or services slumped?

Are there internal problems - the loss of key personnel, production problems or lack of capacity to meet customer demand - that are hampering your progress? Or maybe your forecasts were simply wrong, in which case you may need to do a reassessment.

 

What if my business plan got it wrong?

If your forecasts and projections were based on solid research you need to understand (give or take a reasonable margin of error) why the actual results were different and adjust the plan accordingly.

A business plan is a work in progress. You can never know everything that you will have to deal with so don't expect your business plan to contain all the answers. What it can do is help you keep your eye fixed on the distant horizon. While day-to-day distractions have to be dealt with, you should never forget where your business objectives lie.

If you think that having a sound business plan would make running your business easier visit out product and service pages, and find out more about the market leading business planning software we offer as part of our essential business packages.