Your business is always changing, and your business plan should reflect that. This handy document is key to tracking your company’s progress and helping you and your team stay on target.

And with the new financial year upon us, now might be the perfect time to take your business plan out of the drawer and give it a fresh update. Yes, you’ve probably got a lot on your plate already, but getting into the habit now can pay off down the track. 

Why should I update my business plan?

Expecting the same old business plan to stay relevant year after year risks tying your business to inefficient or outdated processes. If you go long enough without adapting, your business may stagnate or even decline.

Ideally, a business plan should be updated regularly, which lets you respond to setbacks and take advantage of opportunities. Just like a GPS might adjust your route in response to traffic or road closures, a good business plan should analyse the market and chart the best way forward based on current conditions.

Start by reviewing your current business plan

The obvious first step is to pull up your current business plan. Generally, yours should include the following:

An executive summary, which will include your mission and vision statements
A description of your company
An overview of your company’s structure
Details about the product or service your company is selling
A market analysis

The good news is that your current business plan won’t need a complete overhaul. You’ll probably be able to keep many sections as they are, like your company description and details about your product offering. 

That said, don’t make a carbon copy of the old business plan. A lot will have changed in the past 12 months, and while continuity of strategy is important, businesses shouldn’t be afraid to course-correct if things aren’t working, or if the market has shifted in ways that require a response.

Analyse the market to get the lay of the land

A market analysis is the part of your business plan where you research your industry, examine current market trends, and consider how new technologies, economic changes, or regulations might impact your business.

If the goal is to increase your market share, you’ll also need a strong understanding of who your competition is. Start by identifying your competitors and conducting a SWOT analysis of each. Where do you have an advantage? And do your competitors have any weaknesses that you can exploit?

Evaluate your progress against your goals

Failing to evaluate your goals undermines the entire point of setting them. To get a sense of how your company is going, revisit each of the goals you laid out a year ago and ask yourself the following:

Did you achieve the goal or fall short? Why?
If the goal wasn’t achieved, is it still realistic, or does it need to be modified?
If the goal was achieved, do you believe the business can recreate that success again?
If a goal had to be abandoned, what was the reason?
If the goal is still in progress, is the business on track to achieve it?
Were there any challenges along the way? How did the business overcome them?

Reflecting on your company’s successes and failures up to this point should help you understand its strengths and shortcomings. This can help you be more strategic when planning for the future.

Think about future goals and draw up a plan to achieve them

Your revised business plan isn’t just for show — it should be a blueprint you refer to when deciding which projects to prioritise and where to allocate resources.

For that to happen, lay out your company’s key objectives for the next 12 months. Use the SMART model to develop specific, measurable, achievable, relevant and timely goals. And think about getting buy-in from employees by seeking their input throughout the process — they’re the ones in the weeds, after all.

Your market analysis can also come in handy at this stage. For example, if you plan to expand to new locations, it won’t be enough to focus on your company and whether the funding is there. You’ll need to consider the broader picture, like whether the customer base is large enough and whether your current vendors can accommodate the expansion.

Small Business Plan Template

At the end of the day, you don’t want to be stuck with a business plan that’s no longer fit for purpose. Updating it when the situation calls for it can help you retain your competitive edge. 

If you want to write a business plan from scratch or refresh an existing one, our free business plan template can help you get started.