10 Tips for Building or Updating a Business Plan During Economic Uncertainty

Entrepreneurs have a lot to think about, especially during uncertain economic times. As the country continues to return to a robust economy, start-ups and existing businesses are still having to face other common stress-inducing challenges, such as inventory, staffing, and financing.

A business plan could help reduce the anxiety and instill confidence that the company you're about to start or maintain is still right for the market - and you.

Here are 10 tips for building or updating a business plan during periods of economic uncertainty.

1. Regularly assess your competition. Over the past two years, many businesses shuttered under the pressures of a pandemic economy. And others haven't risen to replace them. Survey your market and identify what your competitors offer and how your products and services compare in price point and value.
2. Rate your digital transformation. The pandemic forced many consumers and businesses into the digital transaction space, whether they were ready for the change or not. On a scale of 1 - 10, rate how easy you've made it for consumers to purchase your products or services using digital payments. If you're unsure, survey your customers. Determine what digital enhancements you still need to make to your business.
3. Revisit your revenue model. Does your business make money with the same products or services you introduced when you founded your company? Should it? As consumer habits have changed, so might your most lucrative revenue streams. Consider which product and service offerings should be retired, enhanced, or created to increase profitability.
4. Evaluate your customer base. Sales are the lifeblood of most for-profit businesses. When you no longer understand what your customers want, how can you give them a reason to buy what you sell? Identify your ideal customers so you can update products and introduce new ones while outshining your competition.
5. Figure advertising costs. When you know your customer base, you're better positioned to know where to spend advertising dollars. If a marketing strategy no longer produces the expected return on investment (ROI), explore additional ways to reach customers while keeping costs down.
6. Identify industry trends. As you create or update your business plan, consider the ebb and flow of your specific industry. Some products and services are seasonal but could be stable earners year-round with the right marketing efforts. Read trade association publications and online magazines as well as attend conferences to stay alert to changes that could affect the needs of your target market.
7. Forecast staffing needs. Paying regular attention to industry trends can tell you a lot about the external aspects of your business. However, forgetting to account for staffing needs could negate the gains experienced from creating a perfect product for the marketplace. High turnover can also eat at profits. Human resource associations, like the Society for Human Resource Management (SHRM), can help you understand employee needs regardless of industry. They also offer insight into the state of the U.S. workplace and what you can do to recruit and retain the right employees for your business.
8. Regularly review your business plan. Your plan acts like a map of your business journey. It can serve as a guiding light for your organization’s operations. However, it can only help lead you in the right direction if you use it and make adjustments as needed. Mark your calendar for a quarterly review of your plan to ensure you're hitting strategic targets. In addition to your own quarterly assessment, it’s beneficial to schedule a Business Financial Review with one of our Commercial Bankers to further discuss your current financial outlook in correlation with your business plan.
9. Share your business plan. Input from employees, shareholders, investors, our Commercial Bankers, and other interested parties could help strengthen your plan and ensure its success. Remember that the goal is to create a working document that provides important data points that can be used to support your company's mission and vision. External input could shine the light on your personal blind spots.
10. Assess your financial needs. Expect to grow your business with company profits, investment capital, or business financing. Many companies use all three to pay for new product launches, hire staff, and open additional locations. Record the estimated costs of these and other strategic goals into your plan. Make sure to also sit down with one of our Commercial Bankers at a later date to further discuss your financial needs and how our financing options can help meet your organization’s goals.

Town and Country Bank and Peoples Prosperity Bank is here to help!

If completing a business plan is on your to-do list, don't check it off before speaking with a Town and Country Bank and Peoples Prosperity Bank Commercial Banker. Our experienced professionals can support your plan by helping identify financing options that can weather any financial situation. Explore Small Business Administration (SBA) loans, business checking and savings options, business debit and credit card options, and more when you request a Business Financial Review today!