Updating a business plan

Writing a business plan is a crucial step for those contemplating opening a new business in Texas. A business plan allows entrepreneurs to organize their marketing strategies, and such a document will often be required by banks or outside equity investors before financing is approved. However, writing a business plan should not be looked upon as a task that can be forgotten once completed, and there are a number of situations that may call for it to be reevaluated and updated.

While most entrepreneurs consider writing a business plan to be something that is done during the initial formation stage, it often makes sense to periodically revisit the document. Sometimes this is done on a regular basis such as each year or at the beginning of a quarter, and sometimes a business plan is revised when a new source of capital is needed.

However, there are other situations that may make it wise to revisit a business plan. The business landscape is constantly changing, and new technologies, tighter regulations or the emergence of a powerful competitor could prompt entrepreneurs to rethink their strategies. Business owners may also choose to update their business plans when management is changed or the company achieves a major goal such as moving into a new office or reaching a sales target.

A business plan is usually written at a time when an entrepreneur is making some extremely important decisions. Selecting the appropriate business entity is one of those decisions, and an experienced business law attorney can explain to entrepreneurs the liability implications and tax benefits of forming a sole proprietorship, a limited liability company or a corporation. An attorney can also help business owners with legal and regulatory issues as their companies grow and the challenges they face become more complex.

Source: Entrepreneur magazine, “8 Reasons to Update Your Business Plan Right Now”, Feb. 24, 2015

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