For many businesses, it may not be often enough—especially in today’s economy.
Businesses commonly see the most need for a business plan before the launch and while requesting financing from a financial institution (most of which typically require a realistic business plan before lending funds). As time passes and operations become more effective, however, the original business plan often falls by the wayside. While companies may not crumble because of it, they are letting go of an inherently useful tool, particularly in tougher times.
Things change quickly in a down economy, and your business plan should reflect how your company can and will react to these changes. So review your business often, and don’t be afraid to tweak it when necessary. For example, you might:
- Reflect shortened planning cycles, such as quarterly or even monthly
- Forecast your revenue versus expenses based on economic changes
- Add scenario analyses, reflecting how your business would be affected by—and react to—extreme inflation or deflation
By reviewing your business plan more frequently and adjusting it to reflect the economy, you’re automatically creating a more realistic strategy for your company. Few things could be more useful—in any economy.