5 Ways To Update Your Business Plan
Posted on: 31 March 2020 by Emma Parsons
Businesses should always have a business plan in place if they desire to succeed.
Businesses should always have a business plan in place if they desire to succeed. However, over time, your business may expand in the market which results in the need to update your business plan. From new competitors entering the market to the new needs of your target market, there can be lots to consider. These changes to your business plan may appear overwhelming at first, so here are a few places to start in order to get you on the right track and create a better vision for your business.
Expand Your Offering
One way you can update your business plan is to include your ideas for an offering extension. This may be a new model of an existing product, a new service that adds value to the consumer, or a new product entirely that would be enticing to the same target market. Finding different ways to add value to your customers, such as more efficient technologies or faster delivery, will keep your customers happy with the business offering and give them a reason to pick you over competitors continuously. Your offer expansion should stem from your original offer, for example, a restaurant that provides the service of food now adding the offering of home food delivery.
Change Your Business Classification
Due to the business expanding, it may be time to upgrade your business from a sole trader to a partnership, especially if you taking on more staff, expanded offerings or a larger location. By taking on a partner, you inject a larger pool of funds into the business. This can be used to purchase a larger location, take on new staff, or update technologies to accommodate the business’ growth. Westpac suggests that you trade under a different name if a partner is taken on, which includes a new domain website and email address, as well as a new bank account and ABN.
Bring In New Skills
With an extension of business activities, more employees with different skills and talents are necessary. Invest in upskilling your staff and on new staff members, as whilst it does require more funds, they can help deliver a better service to your customers in the long term. New employees specialising in marketing can spread the name of the business, whilst a web developer can change the business website, which all should be included in the new business plan.
In doing so you may need to find a way to better communicate the updated vision to your team, and you can use project management tools to keep everyone on task. This will keep moving employees towards achieving your business goals. Restructuring of the team might be necessary to ensure everyone's roles and responsibilities are clear, which needs to be detailed in the updated business plan.
Better Understand Your Target Market’s Needs
Customer needs can change over time, and if adaptions to these new needs are not made, the business can lose a significant amount of profit. Customer needs may change because of external factors, such as customers wanting home delivery for restaurants during Coronavirus as they cannot leave their house. Needs may also evolve with a greater reliance on technology and the desire for instantaneous conversions, such as including next day delivery in the offering. If your business wants to achieve the goals of growth and profit, they will need to update their business plan accordingly to match the new needs of the target market.
As new competitors enter the market, the business will need to update the SWOT in their business plan. With competitive offers, the business should invest in greater marketing efforts to portray why their offering is better, such as greater customer service, or you may need to tailor the offer to compete. Being aware of competition helps you stay ahead; one tip is to make sure you offer benefits of loyalty with your customers so that they stick around.
Overall, your business plan needs to dynamic with ongoing revisions as your business grows and the market changes. Above are the top ways you need to revise your business plan, which will you be implementing first?