Revisiting Your Business Plan

If you’re an experienced business owner, you may think a business plan is something you need only when starting out. The truth is that an updated plan can help business grow and your employees thrive. Here’s how to handle an updated business plan.

Start from Scratch

If you began your business years ago, it may look entirely different now than when you started out. Reestablish in writing and with the help of partners and key executives what your business does, its desired and actual customer base, your company’s hierarchy and other key facets of your company.

Revisit your marketing strategy — of course you have one — and compare your market saturation, sales and costs to your competitors’. If you don’t have a current financial picture, work with a professional to develop one. You may find, for instance, that operating costs are unnecessarily depressing your net income or that you aren’t spending enough to meet demand. You’ll also want to make sure your employee compensation packages are competitive.

Look Ahead

With the past and present accounted for, look to the future by writing a new plan covering the next five or more years. With hard numbers to compare your business versus competitors and an understanding of your market’s potential, list realistic goals. How much can you realistically increase profits? Are there areas in which you should cut back and others needing further development? You could find it easier than when you first started out to secure financing for expansion, if that is what’s needed and you can make the business case for it.

Plan for the Future

This is when it could be a good idea to work with a financial professional to learn how you might build a better workforce by offering a retirement plan, health insurance and other desired employee benefits.

You might also consult an attorney, who can work with you on a succession plan, if that’s what you want, and a buy-sell agreement, to help ensure you extract financial value from your firm upon leaving. A financial professional can also help you with funding ideas, such as using life insurance.*

* Applications for life insurance are subject to underwriting. No insurance coverage exists unless a policy is issued and the required premium to put it in force is paid.