As our businesses evolve, our business plan changes too! You may have been required to write a business plan to obtain a small business loan and launch your business. Then maybe you put the business plan binder on the shelf or close the file safely in your computer’s documents, in case you need to borrow more…. Ugh! When we put our business plan on the shelf so to speak, it’s out of sight, out of mind and not looked at again.
A fluid document, business plans evolve and change with your business. Have a look at it. Does it reflect your current status? You can use this powerful tool as a way to evaluate and grow your business instead of letting it sit there gathering dust. When evaluating your business plan on a regular basis (this doesn’t require hours and hours, keep it short and simple), you can use the time and details to brainstorm other opportunities or to stop processes failing to produce the cash flow you hoped for.
Oftentimes, we start down a path in our business hoping it will take off. When it doesn’t, I see business owners chasing their tails, spending precious time trying again and trying harder rather than focusing on something that does work. Pressing pause in our business to evaluate can be done on a consistent regular basis. Put it on your calendar, make it a date, make it fun! Let it help you more clearly define your niche or help you get creative with your schedule. What works best for you? When are people showing up for your classes? Does your schedule need to change by season? For shorter winter days, later in the day may work best, while early summer mornings may be the way to go when it’s cooler. Your attendance will be telling, are you tracking it?
What do you want out of your business? What’s your target income? What’s your energy level? Are you still as passionate about your business as when you started out? Are you willing and able to put in the time and energy necessary to produce the results you seek? Are you being realistic? Can you do anything different? Can you do more? Scattered focus equals scattered results. Are you trying to be everyone to everybody and getting burned out?
With that in mind, think about the sections in your business plan.
- Company description
- Describe each service or product lines
- Finance
- Funding: where’s the money for the startup costs (seed money)?
- How much are the startup costs
- Once established, what are the ongoing costs
- Projected income – what are you charging for your services or product line?
- Accepted payment types – cash, credit card
- Funding: where’s the money for the startup costs (seed money)?
- Equipment, Inventory, supplies
- Technology
- Sign up options
- Credit card processing method
- Marketing plans
- How are you marketing your business, and what is the cost in terms of time, money, and energy?
- Website
- Social Media
- Samples/coupons
- How are you marketing your business, and what is the cost in terms of time, money, and energy?
- Location
- Where are you conducting your business?
- BPI – Business Process Improvement – this is an ongoing evaluation of all categories in your business plan and a great “maintenance addition” for documenting and tracking purposes.
Even when you review your business plan regularly, unexpected things come up. We often view change as a threat.
For Example: maybe the space you rent is no longer available and you must relocate! This space is conveniently located and your clients regularly participate in your classes. Now what? Your business feels threatened due to the relocation. You grow concerned about the cost of rent for another space. Doubts begin to threaten you too! Will my clients be willing to drive further? If my rent goes up,and I need to recoup the cost in charging more for classes, will I lose my client base?
We can look with a fresh perspective instead of viewing things as a threat. An opportunity to grow! This can be a good thing, as hard as it can be to make the necessary changes. Using the right language with your clients, showing it’s a win/win for them too! Maybe you offer specials for new clients in the new area, or you offer coupons to the regular clients moving with you. How about a referral bonus – like a free class when you refer someone?
There is no time like the present to schedule a review of your business plan and consistently add to your calendar. I recommend right after you’ve paid your bills for the month as you become very aware of the expenses. Tax time is a great time as you pull your details together for your tax return. My favorite time to relook at my plan is when I’m planning for the next season. Instead of right before the start of the new calendar year, when I see many business owners planning for the next year, how about 1 to 2 quarters beforehand? So in September, start planning for the winter, or even the spring schedule and class offerings.
You know your business and yourself, I know you are wise and will figure out the best time for you!
Lori (Rehnelt) Aufderhar, Business owner of Systems For Change, LLC, has a background in Business Management, Accounting, and Professional Life Success Coaching. She holds Securities Series 6, 63 & 7 – MN A/L/H licenses, with a 25+ year track record of streamlining business processes, promoting healthy work environments and lifestyles. As author of “Not It: An Approach to Life”, Lori promotes yoga in her fitness chapter as part of a healthy lifestyle, especially as we age. She also contributed to the #1 best seller “Summit To Retirement: Finding Success on your Financial Trek” by Sean McDermott, with a chapter on Retirement Life Planning.
