Yet by doing so, a business owner wastes a very good resource and is throwing away a road map for success. So take that plan out, dust it off and see how you can recycle it to become a useful business management tool.
Take a second look at the following sections of your plan and update them with a view to mapping out the next few years of your business.
1. Financial forecast
When you did your original forecast you were basing it on an idea, rather than on any solid experience. But now that your business is up and running, you should be able to plan out a more accurate financial forecast.
You will no doubt already have financial management documents set-up, but recycling this part of your business plan will enable you to look forward to where you want your business to be in the future and work out what it will take to get you there. Looking ahead also helps with cash flow management and can give you targets to hit in terms of revenue generation.
Updating your plan also gives you a chance to take into account new economic factors such as the recession, which may not have impacted on your original forecast.
2. Sales and marketing
Marketing is an important part of any business, whether you get most of your customers through recommendations, via the internet or by advertising.
Your initial plan is likely to have been limited in this area, as there is rarely a large budget for such things during the start-up period when every penny is precious. However, now you know who your customer base are and how you are best able to reach them, making an annual marketing plan is essential.
now you know who your customer base are and how you are best able to reach them, making an annual marketing plan is essential
Decide how much of your revenue you need to spend on gaining new customers and retaining existing customers, and which marketing tactics the budget should be spent on. It pays to leave room to test out certain tactics as you don't want to spend a significant proportion of your budget on, for example, advertisements in a national paper, only to find that you aren't getting a return on your investment.
3. Operations and infrastructure
There are so many jobs to do when running a business that it's easy to get stuck in a rut when it comes to how you operate. Doing what feels familiar is easy but it may not be the most efficient way of taking your business forward.
Using your business plan, you can schedule reviews of your operating procedures, infrastructure and other management tasks in order to make sure you are always on your toes. Ask yourself - do you have the best deals on your utilities, premises and insurance? If you have staff, do you have an organised approach to PAYE and human resources? Are there jobs which would be more efficiently done by outsourcing?
4. Competitor research
Keeping an eye firmly on your competitors should be an ongoing task and is one worthy of a formal review at least once, if not twice a year.
When starting your business you will undoubtedly have researched the market to find out who your competition is and how your services compare to theirs. But the competition doesn't sit still and neither should you.
So gather as much information as possible; marketing materials like adverts and flyers, emails, website content, customer service tactics and social media networks. Over time you should be able to build a picture of what they are aiming for with their business and you can use the information to differentiate and improve your own business.
Doing this can be time consuming but you can be sure that your competitors will be gathering similar information about you and you don't want to get left behind.
5. Getting a return on your investment
Updating your business plan regularly is a good investment in the future of your business, as it lays the foundation for your overall strategy and acts as a solid guide that you can refer back to whenever necessary. Given the right care and attention you will almost certainly see a return on that investment.
For more information please visit www.simplybusiness.co.uk
