Plan an Updating Checklist Here are seven reasons to think about updating your business plan.
If even just one applies to you, it's time for an update.
The purpose of your plan also determines its length.
If you want to use your plan to seek millions of dollars in seed capital to start a risky venture, you may have to do a lot of explaining and convincing.
Business plans tend to have a lot of elements in common, like cash flow projections and marketing plans.
And many of them share certain objectives as well, such as raising money or persuading a partner to join the firm.They're used by investment-seeking entrepreneurs to convey their vision to potential investors.They may also be used by firms that are trying to attract key employees, prospect for new business, deal with suppliers or simply to understand how to manage their companies better.Plans differ widely in their length, their appearance, the detail of their contents, and the varying emphases they place on different aspects of the business.The reason that plan selection is so important is that it has a powerful effect on the overall impact of your plan.Most books on business planning seem to be aimed at these startup business owners.There's one good reason for that: As the least experienced of the potential plan writers, they're probably most appreciative of the guidance.It helped make the new venture a winner long before the big day arrived."As a result of the retail support up front," Walker says, "we had over 45 licensees running the gamut of product lines almost from the beginning."These middle-stage enterprises may draft plans to help them find funding for growth just as the startups do, although the amounts they seek may be larger and the investors more willing.If you jot down a paragraph on the back of an envelope describing your business strategy, you've written a plan, or at least the germ of a plan.Business plans can help perform a number of tasks for those who write and read them.