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6 reasons to update your business plan

Here are reasons why you should update your business plan every once in a while.
By Nina Zipkin |

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Business plans are living documents. Make sure that they evolve with your company and reflect the business you're running by revising when your company meets these six milestones.  

 

You want to refinance or fundraise. Investors and lenders want to know about your current challenges and have the most up-to-date look at the costs and opportunities you're forecasting. 
Read more: Update your business plan to renew your drive and focus

 

You launch a new product or service. A new revenue stream will impact how you manage your resources - and can impact profitability. Let partners and investors in on your vision to get their buy-in and help with execution.
Read more: How and why business plans have changed

 

You expand into new markets. How you allocate your time and resources will change dramatically as you expand into different cities and countries. An updated plan can help you set realistic goals and communicate those to you team.

 

Your competitors have changed. Half the battle of running a successful business is staying aware of what the others in your industry are doing. If your major competitor pivots or there is an up and coming venture that enters the field, include that in your plan
Read more: Updating your business plan

 

You change suppliers or technologies. Changing your supply chain could help you cut costs or even position your company as more environmentally friendly. Furthermore, a shift to a new tech platform could give your company an important competitive advantage that investors will want to know about.
Read more: 8 reasons to update your business plan right now

 

Your customer changes. If your target customer has shifted, you might need to meet a different set of wants and need. If so, you'll need to explain in your business plan how you'll find your new core market and retain it.  
Read more: A better business plan can lead to new customers

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Copyright © 2015 Entrepreneur Media, Inc. All rights reserved.
This article originally appeared on Entrepreneur.com. Minor edits have been done by the Entrepreneur.com.ph editor.     

Photo from Flickr (Wonderlane)

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