The new year is a good opportunity to sit down and review your business plan.
It can be easy to create your plan, stick it in a drawer and forget about it but you should really update and review it regularly if you want to keep your business on the right track.
Take a quick look at what a business plan is, why it’s so important, the elements you need to review and who can help you update your business plan for 2024.
What is a business plan?
A business plan outlines the key areas of your business and documents your company’s mission, vision and goals.
A typical plan will contain details such as an overview of your target audience, product or service details, delivery methods, marketing strategies, intellectual property, team members, competitors and biggest risks.
You may have all this information in your head but if you want to grow your business and stop being everything to everyone, things need to be clearly documented. Creating a business plan will also highlight the questions you have left unanswered and give you an idea of which areas need to be focused on.
A business plan can be a simple one-pager or a multi page document… it’s up to you but think of it as an overview rather than a whole book.
Why reviewing your business plan matters
Because of this ever-changing nature of the business landscape, what worked yesterday may not work tomorrow. This is why a regular review of your business plan is essential.
After all the disruptive changes of 2023, including rising costs, new technology and shifting priorities, you may find you need to shift your strategies and target audience needs to be updated. Updating your business plan will help you get clear on what needs doing.
Elements of a business plan
These are the areas to include or update:
- Executive summary: Add your elevator pitch, mission, vision and values. If you need a simple formula for an elevator pitch, try the problem/solution/outcome formula.
For example: A lot of business owners in the fitness industry face difficulty selecting insurance and they end up either underinsured or spending too much. We provide a service to review and recommend insurance policies, so fitness businesses save time, save money and have the right cover in place. - Company description: This is where you outline your business, including its history, structure and the products or services you offer. You may find this has changed a great deal since you first worked on your business plan.
- Market analysis: This section helps identify opportunities and potential challenges by examining the industry, market trends and your competitors.
- Organisation and management: Details about the organisational structure of the business and key personnel. Reviewing this will help you identify where you either have too many or not enough people.
- Product or service line: This is a deep dive into what your business offers, its unique selling points, and how you meet the needs of your target market.
- Marketing and sales: What are your strategies for promoting the business and converting leads into customers? This may need a rethink in 2024.
- Funding requests (if applicable): If you are looking into external funding from investors or grants from the Government, this section will outline the details.
- Financial projections: This is a crucial part of your business plan outlining the financial health and expected performance of your business over the next six to twelve months. You may need to create a separate deep-dive document to work through with your accountant or finance team.
- SWOT analysis: This section covers your strengths, weaknesses, opportunities and threats. You might also want to do some disaster planning in the new year and have a think about renewing your insurance.
- Goals, KPIs and milestones: Your business plan can conclude with your key performance indicators and a list of what you want to achieve by the end of the quarter, financial year and year.
Reviewing your company’s business plan
As a business owner, it can be difficult to see the wood for the trees and you might be procrastinating when it comes to looking at your business plan. To hold yourself accountable, book a time with your accountant to sit down and review your plan, talk about your goals and start figuring out how you will achieve them.
Once you have your updated version, don’t forget to share it with your team so they understand your vision and the path you’re set to take in 2024.
Ready to review your business plan for the new year? Talk to Crest Accountants today.
