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Business Plan Examples

Using Your Business Plan Internally

A business plan can also be used internally by your company. It isn’t meant to just be used to attract funders, while that is, of course, its primary purpose. If you’re particularly savvy, you can tailor your plan so that you can use it internally to assist you in moving forward with success and confidence. This is a particularly helpful tactic because you can use this internal analysis on a regular basis to see if you’re satisfying your expectations. If you see that you’re falling short of these expectations, you can always revise them to make everything come together more seamlessly.

Monthly Revisions

Never fall into the trap that the majority of people who write a business plan end up falling into: Thinking that it’s only a one-time plan that you then blindly follow over the life of your business. Nothing could be further from the truth. Instead, you must revisit your plan once every month. Call a meeting, and see if your assumptions, which you composed when you initially wrote the plan, have panned out. If they have, great! If not, it’s time to retool.

Go Into the Specifics

Another mistake is that too many people believe a business plan is just for devising strategy, but this is false. Specifics are just as vital. Specifics that ought to be covered in any half-decent plan include who in your company’s accountable for what, when it occurs, the cost of your products and services, and the profits your business is expected to bring in. After all, your plan’s about what’s going to happen, so infuse your plan with metrics you can reevaluate later on.

Cash Flow Projections Are Necessary

Never neglect your cash flow projections. A business dies without cash, but lives and thrives with a healthy amount of it. While profits are not just nice (they’re necessary!), you spend your cash…not the profits! A profitable company can go bankrupt if it fails to have enough spending money. Therefore, you should analyze how your cash flow is affected by your inventory, which can work out to you paying for stuff you purchase way before you’re actually paid for what you sell.

This is how you can use your business plan internally. Notice how there are practical reasons to do so. If you utilize your plan internally as well, you get to see whether you’re on track to satisfy your earlier assumptions and projections. Using your plan internally also lets you correct your course if things are not working the way they should be.

Peter

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