Review company’s performance on the basis of your business plan?
At this moment, are you assessing your company’s performance based on your business plan? Then please check your business plan first to begin the assessment.
What is a Business Plan?
A business plan is a very important document of the company as it works as the base for the company business. It consists of strategies, marketing and sales techniques, and financial planning of the company. It focuses on increased profitability and revenue inputs of the company.
It takes experts to prepare this business plan who spend a lot of time and exercise their expertise to draw a perfect business plan for the company. Any flaw in the plan may prove disastrous for the company. It clarifies the business ideas, identify potential problems in business, find out objectives of the business and monitor the progress of business.
Business plans should be reviewed on a regular basis, especially if a business is expanding quickly, experiencing cash flow problems, adding new products or services or reaching into new markets. Align plan review dates with the short-term and long-term goals outlined in the original business plan and conduct a comparative analysis. Depending on the business, this could be a monthly, quarterly or annual review.
To develop a tracking system for evaluation of business-
It is important to track the company’s business performance keeping into view the business plan. For this, it is necessary to develop a tracking system. If the business plan contains measurable goals, one should develop a tracking system to assess where business stand regularly. For example, if the plan calls for earning a certain amount of revenue per month, track revenue on a daily or weekly budget to monitor and control the process. This approach allows to tweak the system if the numbers are far off the mark. One must monitor key elements frequently. Key elements of the business plan include research on market and competition as well as revenue projections. Each of these elements is subject to rapid change.
Coordination of Business and marketing plans in the company.
Business and marketing plans may overlap in several ways, so reviewing both documents simultaneously on a regular basis helps the company monitor and control the goals and measurements of each plan. If an element of one plan changes dramatically, company should evaluate the impact it has on the other plan. For example, if the marketing plan calls for to launch a major media campaign, but business plan’s revenue projections are weak; Company must revise each to stay on track.
Making changes when necessary is a clever strategy-
An intelligent company is always open to learning and changes if necessary. Adamancy in policy matters may prove fatal often. A business plan is not an unchangeable document. It must be considered a fluid plan that can be tweaked and updated as the business changes and grows. The company must never cling to elements of business plan that are outdated or no longer useful. For example, if part of the company’s five-year plan includes moving to a larger facility, but the company finds after five years that the small facility works just fine, the company should revise and update the business plan. Continually revise company plan so that company can always looking ahead in one, three and five-year increments, basing future projections on past performance.
Assessment of company’s performance based on company’s business plan requires continuous tracking and monitoring of both. Then only desirable results can be achieved.