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Six reasons to update a business plan

Entrepreneurs across Texas know that in today’s competitive and fluid marketplace, it takes more than just a good idea to stand out in the crowd. Growing a business involves making strategic and deliberate decisions that include reassessing and revising business plans. Because industry moves fast, plans can become outdated quickly. For a business plan to be truly valuable, it needs to mature and remain relevant to your company’s needs.

As a savvy entrepreneur, you wrote a business plan to attract funding, better understand your customers and competition, document your revenue model and set goals and objectives. Now that you have met your milestones, what does that mean for your business plan? Planning is a constant process. Make your business plan fluid by continually updating it to reflect changes in company vision.

Revisit and revise your business plan

The statistics are grim: only half of startups survive more than five years. There are numerous reasons businesses fail, one of which is a static business plan that does not leave room for expansion. Business plans are living documents. Entrepreneur.com suggests that updating a business plan is a long-term process that establishes strategies and objectives.

There are several reasons to update your business plan. Some of these include:

  1. You need new financing
  2. You are achieving milestones
  3. Your competitors have changed
  4. You have a change in management
  5. You expand into new markets
  6. Your business develops a new product or service

These are great reasons to step back and remind yourself of the original goals for your company. You might see that your old plan no longer serves you. Every good plan is worthy of revision.

Running a small business is no easy feat and requires juggling many jobs, large and small. You may have been so busy in day-to-day operations that your business plan has been cast aside or maybe even largely disregarded. Review the progress of your business and update your business plan to help you assess your expectations, keep your company keep on track and stay current on the market.

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