Is it time to review your business plan?

Now that you’ve settled into 2022 and set some business resolutions for the year, have you allocated time to review your business plan? Your business plan is not something that you ‘set and forget’, it’s a plan that needs to be reviewed and updated every quarter.

A common misconception about creating a business plan is that it needs to be a detailed, 50-page document when all you need is one page. Having a simple plan also means that when it’s time for your quarterly update, you won’t need to spend hours making changes.

Why having a business plan is important

Your business plan is usually your main source of information regarding what your goals and objectives are. A business needs a plan of action, which is based on your business model, so if your business model doesn’t reflect your current goals and objectives, how can you create strategies that are effective?

Things to consider when making your business plan

When creating your business plan the first questions you ask yourself are:

• Who are my ideal clients?
• What services do I want to offer?
• What are my growth and revenue targets?
• How will I build brand awareness?
• Will I have employees?
• What is my cost structure? And,
• What makes me different to my competitors?

How to write a plan

Following the Rockefeller Habit’s business plan, a good plan is generally one page and includes:

• A SWOT analysis (strengths, weaknesses, opportunities, threats)
• Your “forever” core values and beliefs (overarching goal)
• The “why” behind your organisation
• Your long-term goals (ten years)
• Your mid-term goals (three to five years)
• Your short-term goals (one year)

Once you have your one-year goals outlined, break them down into quarters and revisit your quarterly goals each quarter.

Why you should be reviewing your business plan regularly

Reviewing your model helps you strategise, stay relevant in the market and plan for what needs to be actioned in the year. Updating is not about rewriting your entire business plan but making small changes to make sure your quarterly goals align with your long-term goals. If you’re reviewing regularly then the changes shouldn’t be too drastic unless there are major changes in your industry.

Opportunities may arise in different target markets or there may be new ways to communicate with your clients that weren’t considered in your original plan. Relying on an outdated business model means you’re at risk of missing important opportunities.

You should review your business plan quarterly and update it for the coming months. When you are updating, make sure you include:

• Last quarter’s performance
  Reflect on how your business did last quarter and review your goals and budget vs actual figures to see how you performed and whether you kept on track.
• New goals and targets
  Create new goals for the upcoming quarter and make sure your budget and targets reflect your long-term plan.
• A plan of action
  Once you outline your new goals and targets for the coming quarter, have a plan for how you plan to achieve them. When communicating your business goals to your staff, it’s important to only mention your short-term goals. A common mistake for business owners is that they overwhelm their employees by talking about the ten-year plan. It’s much easier to keep your staff motivated with smaller goals and KPI’s for that specific quarter.

Why Carbon Accounting & Tax

It’s important to work with an accountant from the beginning to discuss your options. When your organisation grows and changes, your accountant should be there to help you with your plan of action. Our Accounting & Tax Partners are here to be your accountability coach. We will sit with you during your quarterly meetings and make sure that you’re staying compliant and hitting your business targets.

The internet is overly saturated with different business plan templates and it’s normal to feel overwhelmed. Our accounting team is here to reduce your stress and help you achieve your goals. Get in touch with us today to get started.