Establishing a Minnesota business should include the development of a business plan, a living document that allows goals and ideas to be recorded for future reference. Review of such documents is important for measuring progress and making adjustments in strategy as results are compared to the original goals. An annual evaluation of a business plan may be advisable to ensure that one’s company stays on course. However, it might also be wise to evaluate the plan when certain situations occur that could affect one’s success.
It is rare that an entire business plan needs to be changed. However, minor updates may be needed as the market changes. In some cases, activities may need to be eliminated. In others, new technology or ideas may need to be incorporated. A revision is not nearly as complicated as developing the original plan, meaning that the time involved in an update may not be significant. Economic changes for a business can be serious, requiring a good review of initial plans. The economy may affect a business directly because of the changes in pricing of materials, but it can also play a role due to its impact on potential customers.
Changes in terms with vendors, the addition or loss of a customer or contract, and regulatory changes can each make a difference in the manner in which a company moves forward; these issues can be addressed in the business plan. Changes in productivity through loss of staff members or the need to downsize can make a difference in one’s plans as well.
One of the more challenging issues for a business owner may be the impact of competition. If copyright or patent infringement is a concern, reliable legal advice may be important for addressing the issue both in a business plan and through legal action. Companies might want to consult with a business and commercial law attorney when revising business plans.
Source: Business2Community , “When is a Good Time to Review and Renew Your Business Plan? “, Hal Shelton, July 26, 2014
This information is general in nature and should not be construed as tax or legal advice.