Business Plan Maintenance

A business plan is not a one-time document, at least it should not be. Most businesses put together a business plan during their start-up phase to organize, attract partners and employees, and to try and get a loan or financial investment. This is a great use of a business plan, however far too often once the company has started up the plan isn&undefined;t touched again.

Ultimately, a business plan is about results, about making your business better. If you don&undefined;t think doing a business plan will improve your business, then don&undefined;t do one. Planning for planning&undefined;s sake is a waste of time.

Where a plan is most likely to make your business better is by allowing you to:

1. Set priorities properly.
2. Track plan vs. actual results and make course corrections.
3. Plan and manage the critical numbers that aren&undefined;t intuitive: not just profit and loss, but the relationship to cash flow, balance sheet, and ratios.
4. Communicate your plan to others: partners, employees, lenders, and investors. You may have a great plan in your head, but as soon as you need to explain it to others, you need to write it down.