How do I Make Sure a Business Plan Is Working?

by Melinda Gaines

Many people consider a business plan to be a method of obtaining start-up funding or the required document to start a business, and then don't think of it much after they've launched. However, a business plan is supposed to be your guide for the future, determining your goals and shaping how you market and grow your venture. In order to be able to reference back to your business plan as a guide, it's important to periodically ensure that it is still effective.

Write down the following about your business: the amount of profit you're earning yearly; the expenses of your business; whether you've grown or expanded your clientele, including additional locations; and your business's presence in your industry and community.

Read through your business plan, comparing where your business is now to where you planned for it to be when the plan was written. Write down any differences you notice, such as goals you've met or goals you've fallen short of.

Use the comparisons you listed to evaluate how your company is progressing. For instance, if you projected that you would earn $100,000 in profit in your second year of business, but you actually earned $115,000, not only did you meet one of the goals set forth in your business plan, you exceeded it. However, if you projected that the business would make $100,000 and you only earned $90,000, research why this goal is unmet and if it is still a viable goal.

Revise your business plan where needed to ensure it is still relevant to your business, clientele and industry. For instance, if the marketing portion of your original business plan did not include social media, you may want to consider adding it as an element going forward. If you planned to open a second retail location four years after starting your business, but ended up opening another store two years into the business, remove this point from your business plan or make another growth plan.

Look back to your business plan at least twice a year to ensure you're meeting short-term goals, staying on target with your expense and earning projections, and sticking to your marketing plan.

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