How can a business plan keep you on track?

It is a common misconception that business plans are only for start-ups and new companies.

Maintaining your business planning throughout the life of your business can ensure its continued success.

Creating a business plan may seem like a monumental task. With your priorities in order and the advice of an accountant, a comprehensive business plan can be drafted in just a few hours.

Once it has been created, reviewing your business plan every month can help ensure your business is on track.

What should a business plan include?

A business plan should follow a set structure and include the following sections:

-        An executive summary

-        A business description

-        Marketing strategies

-        Competitor analysis

-        Details of your products and services

-        Your operations and management plan

-        Financial information and budgets

With these, you will be able to get a complete picture of your business. From here, you should be able to identify how each section is connected and how you can use one area to boost another.

Managing your priorities

With every element of your business laid out in front of you, prioritising becomes a lot easier.

Areas that you had perhaps not considered, such as marketing your business or taking another look at your competitors, can help you identify areas for improvement.

This will allow you to target your time, effort, and resources more precisely into the areas that need attention.

Track your targets

A business plan can also help you to set and track targets.

Setting yourself targets and milestones that can be reviewed each month allows you to ensure that your business is growing at the desired rate.

Tracking your progress will allow you to see if expectations are being met. If expectations are failing to be met, you can take the time to analyse what can be done and set realistic goals.

You will also be able to see if the day-to-day running of your business aligns with your overall aims and objectives.

Manage your cash flow

As well as helping to manage your business tactics, a business plan can help you to better manage your business finances.

Your business plan should not only identify funding but also pinpoint your costs and budgets.

Working with an accountant can help you plan your business’s cash flow more thoroughly, meaning that you always have enough money to pay your recurring expenses even when profits slow down.

Performance indicators

Alongside your business plan, it is recommended that you review your metrics each month. Some figures to include are:

-        Sales and profits

-        Business expenses

-        Calls and leads

-        Trips and seminars

-        Conversion rates

-        Web traffic

-        And more.

These can provide a concrete view of the progress of your business.

If you are unsure how to analyse this data, getting in touch with an accountant can help.

Not only will they be able to identify areas where you can streamline your business finances, but they will also be able to help you review your business plan.

Get in touch today for more help and advice on planning for your business