A Business Plan is not a stagnant document; it is an evolving guide that you should refer to throughout the life of your business. You should update your business plan at least twice a year, perhaps once at the start of your fiscal year and a second predetermined time throughout the year. Many business owners revisit the plans quarterly.

The business plan can serve as a means of monitoring your progress. For example, by looking at projected milestones and determining which ones you have and have not reached, you will be able to set more accurate timeframes for reaching such milestones. You will see aspects of your initial plan that have not worked and need to be revamped or eliminated completely. Conversely, you will see where you have exceeded expectations. If, for example, sales from catalogs have been far greater than anticipated, you may change the plan to put a greater emphasis on catalogs, possibly published twice or three times a year instead of annually.

You can also determine whether your financial projections have been reached or exceeded. This will help you to either find ways to change your sales and marketing strategies or to maintain the status quo.

Not only can you fine-tune your plan to guide you in the future, you can add a new product line, a new service, or alter your plan to reflect a new method of operations. For example, you may have increased the number of personnel in order to serve customers more quickly or readjusted your manufacturing schedule to allow for deliveries that, because of new zoning laws, have to be made before 10 a.m. Businesses are forced to make changes because of numerous outside factors and these should be included in your business plan.

You’ll also want to update your business plan for second and third rounds of funding, as well as for bank loans for new equipment, remodeling, or other purposes. Any lender will want to see the most current updates made to the business plan, indicating that you are aware of current strengths and are addressing any weaknesses.

By using the business plan as a means of monitoring, analyzing, and evaluating your business, you can plan ahead based on the data before you.

Richard Sloan (@RSloan10) has 20 years of progressive success helping individuals and companies build their businesses, increase profits and achieve total success.  He is the founder and CEO of Synergy Shared Solutions, a consulting organization specializing in Small Business Development and Customer Loyalty.