Many individuals and budding entrepreneurs make the mistake of sticking too rigidly to their business plan or simply failing to realize it needs updating. It’s a common trap to fall into. While your business plan is a guide, it isn’t set in stone and shouldn’t be treated as such. You must be flexible and adapt to realities versus perception, changing markets, economies, needs and environs etc.If you are flexible and making strides on opportunities that have been presented since writing, updating should be done to reflect that.
It is important to be able to go with the winds of opportunity when starting a new business and as the venture grows. This, therefore, makes it of vital importance to make sure your business plan is updated. Your success may be dependent on your adaptability. In the business world, the only constant is that change is constant. As an entrepreneur, one must always be ready for it. Your business plan should reflect your new path as soon as it has been decided.
The most common reasons to update your plan are:
1. Changes in the economy.
This may translate to the stability of the currency, supply, and demand, an emerging need, etc.If it has impacted the trajectory at all, then an update is required.
2. Unexpected market
If you decided that you would be targeting a particular market with your product or service and have uncovered an unserved niche you wish to tap into, it is important to add this information into your plan.
3. Accomplishment of the original plan
The difference between a business owner and an entrepreneur is the entrepreneur is ever evolving. Once a particular venture or conquest is accomplished, the entrepreneur seeks to build or secure another. In this instance, the business plan should reflect this.