Do you have a business plan? December is National Write A Business Plan month. If you don't have a business plan, now is a great time to get started. If you do have one, then this is a great time to review it. Hear from the Center for Women Entrepreneurs' Director Tracy Irby about why it is essential to review your business plan now.
Why Business Owners Need to Review Their Business Plan Now.
COVID-19 has wreaked havoc on small business owners across the world. Plans and projections for the year have been stifled and once-thriving businesses may no longer have customers. Other businesses have found an unexpected surge. Because of these unanticipated impacts, your business plan may be out of date and changes are needed to keep your business running as efficiently as possible.
A business plan isn't just for funding--it is a roadmap for your business. It helps you see where your business is and where you want it to go. It includes research and data on your target market; it enables you to identify trends in your industry and lays out just how a business will make money. All of that has now changed due to the pandemic. It's time for a new action that addresses the current situation.
Specific focus should be on the following areas of your business plan:
Market Trends: The face of business has changed. Within industries that have long been considered safe such as public administration, manufacturing and wholesale trade, uncertainty prevails. You will need to update your plan to reflect the trends that affect your business. You will need to determine if there are new trends or how to reposition your business to meet current trends. Is there a new direction your business can turn or unmet needs in the marketplace that you can fulfill?
Marketing Plan: Businesses are having to refocus their marketing plan. In-person sales calls, promotional events, networking and marketing events have all been canceled--many throughout the rest of the year. Developing new marketing strategies are needed to capture the revenue lost from these events. If your business didn't have a website or
e-commerce platform for sales, it’s crucial now. Determine if marketing through social media or other media placement can help you grow and sustain your business.
Financials: Take a look at where you are currently spending your money. How much of this can you cut back on and what is necessary to keep your business running? Revenue and cash flow will most likely be hit the hardest. It will help if you run your business as lean as possible right now. This will help you plan your forecast and your staffing needs based on the current situation. Adding new revenue streams and managing the disruption in the supply chain is necessary. Preparing a new forecast will also help you determine if the assets you currently have are still needed.
Updating these sections of your business plan can be used to increase your business's sustainability, address new ways to add revenue and determine if your business can survive the pandemic.
The Center for Women Entrepreneurs subscribes to LivePlan, an online business plan template that simplifies writing a plan and offers it free to new or existing business owners. It breaks down the process into manageable sections with instructions and examples. It has an easy to follow budgeting and forecasting section that quickly turns your forecast into financial statements.
If you need help writing your business plan we've got you covered. You can schedule a time to meet with our business advisor for free and get the help you need.
