Business plan reassessment leans on reevaluation and analysis. Experts consider it must take place with a frequency of six months to one year. This timescale, however, must be adjustable according to the dynamics of the market and to the kind of business you are in. It depends also very much on the application of your business plan.
- If you use the plan as a business development tool, it may be convenient to design the reassessment plan more frequently.
- If the business plan was built in only as a part of a presentation to an external partner, it will probably be revised whenever necessary.
If you use the business plan as a communication tool, you will not need to update it so frequently. A review once or twice a year will suffice.
If frequent revision of the business plan appears to be more profitable, you will be using the business plan as a tool to help you fulfill your current activities. Keep in mind a general, holistic image of the business and its long-term and short-term goals.
- Thus, the business plan can be reevaluated, say, every month. This squashes any potential problems at an early stage. Recovery is more straightforward and there are no unpleasant consequences.
- Keeping your business plan under close observation may also reveal, and help you anticipate, new tendencies on the market.
- Another advantage of updating the business plan frequently lies in the detailed written record of the development of your business. For many investors or bankers this will constitute proof that your business management plan is clear-eyed, calculated and responsible.