Maybe It’s Time to Review Your Business Plan?

By Randall Orser | Small Business

Four Questions for Revisiting Your Small Business Plan

The smart entrepreneur needs new ideas to improve the small business. One way to reinvent a small business is to read the buzz of business experts on websites like Entrepreneur.com. Experts offer new insights you might adapt to your company’s situation. This article uses the Entrepreneur.com idea of becoming an expense reduction analyst to suggest how you can revisit your business plan.

Question #1 – Can You Trim the Fat?

The expense reduction analyst recommends how other businesses might trim the fat in their corporate budget. Entrepreneur.com explains people with experience in budgeting and business management might be suited for this startup idea. Take your own budgeting skills and apply them to other people’s businesses, or apply the same skills to your company. For example, consider if a new business idea would maximize your human capital (personnel talents). In another example, study alternative insurance providers to decide if your group health insurance rates are best for your finances.

Question #2 – Can You Tweak Your Business Infrastructure to Fit a New Idea?

Entrepreneur.com estimates startup costs for the expense reduction analyst business to be between $2,000 and $10,000. When you use existing business infrastructure, you can save substantially on startup costs. That is why some entrepreneurs buy an existing business before it goes out of business—they leverage cost savings in purchasing infrastructure, such as computer technology, office equipment, and supplies. An alternative is to investigate how your company resources can be redirected. Before you tweak your business resources to satisfy the requirements of a new business plan, be sure it won’t cost you more than you might pay to start fresh.

Question #3 – Do You Understand the Market?

According to Entrepreneur.com, the expense reduction analyst suggests strategies for reducing costs for products and services. Think about how you have studied your costs in your business plan. Understanding the market means considering ways to lower your costs. For example, examine alternatives to your current suppliers. A new business idea or company redirection may call for building new business relationships with new suppliers.

One type of business planning leads to another. Achieving cost savings may enable you to lower prices. This possibility raises new questions that will improve your business plan. For example, how will price decreases affect your market share? Tackling even one planning issue, such as pricing, helps you to make the company leaner and more profitable.

Question #4 – Have Experts Confirmed Your New Strategy?

Launching a new business idea or taking your company in a new direction depends greatly on your understanding of market conditions. Your ongoing market research should reveal insights such as when customers will need a new product or service. Professional market analysts tackle this problem every day.

If you don’t have the expertise to perform these types of business analysis when you revisit your business plan, look for help from an outside firm. The most important goal is to revamp your business plan so you can bring in more profits and sustain yourself as an independent business owner!

About the Author

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