A business plan is the life blood of any entrepreneurial endeavor. It allows you to map out the course that you want your business to take both in the short term and in the long term. As your business grows, your business plan should also adapt to the tides; it has to adapt to certain conditions thereby gaining you more room to grow expand as well. Here are certain points in your entrepreneurial journey when your business plan also has to evolve according to Entrepreneur Magazine:
• You want to refinance or fundraise. Investors and lenders want to know about your current challenges and have the most up-to-date look at the costs and opportunities you’re forecasting.
• You launch a new product or service. A new revenue stream will impact how you manage your resources – and can impact profitability. Let partners and investors in on your vision to get their buy-in and help with execution.
• You expand into new markets. How you allocate your time and resources will change dramatically as you expand into different cities and countries. An updated plan can help you set realistic goals and communicate those to you team.
• Your competitors have changed. Half the battle of running a successful business is staying aware of what the others in your industry are doing. If your major competitor pivots or there is an up and coming venture that enters the field, include that in your plan.
• You change suppliers or technologies. Changing your supply chain could help you cut costs or even position your company as more environmentally friendly. Furthermore, a shift to a new tech platform could give your company an important competitive advantage that investors will want to know about.
• Your customer changes. If your target customer has shifted, you might need to meet a different set of wants and need. If so, you’ll need to explain in your business plan how you’ll find your new core market and retain it.
