How often should a business plan be updated?
A business plan is a living document and it needs periodic revisions. If you’re in a mature business sector during calm conditions, then you don’t need to revise the plan as often. However, if you are developing a new business or product during turbulent market conditions, then chances are that the assumptions you made while formulating your plan will prove inaccurate sooner.
Rule of thumb for business plan revisions
Since everyone wants a guideline, we will provide this general rule of thumb. You should probably review the business plan every six months and make annual revisions.
Dramatic changes to business plan
A business plan should be reviewed and updated whenever a dramatic change occurs. For example, if two of your competitors merge, you should analyze the impact to your entity and formulate your competitive response. An out-of-date business plan isn’t worth much, depending on the significance of the discrepancies.