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Why Update Your Business Plan Every Year?

 If the business plan is often criticized even during the creation of the company, because it often turns out to be unrealistic, it remains a particularly useful tool at all stages of the company. You have surely written it carefully and at the cost of many questioning. You’ve spent a lot of energy but like many entrepreneurs, once this phase is over, you decide not to put it away in a corner of your computer. If it quickly becomes obsolete, it can with updating become a benchmark and a compass. Explanations.

Do Not Lose The Conducting Line

Comprised between 20 and 50 pages, it is above all an opportunity to lay the basis of what your business is even if it will probably evolve over time. The business plan remains the showcase of your future business and describes, among other things: your personal presentation, the legal form, the services envisaged, the targeted customers, the competitive environment, the material, human, promotional or financial resources available and necessary as well. than the forecast figures.

If all the figures are likely to evolve and be refined, the business plan remains an essential tool to keep your line of conduct and move in a direction that will prevent you from being scattered in all areas. It presents your entrepreneurial project and your long-term vision and can help you remember the reasons that made your business successful in the early years. It can help you understand the reasons for a shift in the business model and analyze them cold.

Note that you can as much entrust the realization of your business plan to a chartered accountant as create it yourself even if certain decisions will have been taken based on elements that they do not have. Specific software published by the big names in French accounting exists if you want to make your job easier.

To Update Your Forecasts

Due to its complexity, the business plan tends to be put aside by entrepreneurs once their business has started. However, it should be remembered that the tool allows you to track your activity and compare it to your previous forecasts.

Monitoring can take the form of a dashboard with the following control elements: implementation of the means and planned actions, compliance with costs, achievement of forecast turnover … and to go further, it can help you. Helping with cash flow, depreciation, financing, results… Updating it therefore amounts to refining it because your field experience indicates the variables that have not been reached and that you will have to take into account.

It is clear that the capabilities of the business plan, in terms of forecasting, do not stop at the preliminary phase of the creation of the project, and they remain essential to the company whatever its period of life. The tool allows you to have a head start and a vision of the future in terms of turnover, balance sheet and income statement. This notion of anticipation allows you, for example, to plan adaptations or organize new development perspectives for your activity. Your business plan is therefore a planning and decision-making tool.

Indeed, it allows you to see if your forecasts have been corrected over time, but also to reveal if there are new points on which you will have to pay your attention for the future, and this by integrating the evolutions. of market events. We can cite as an example the arrival of a new competitor which could have repercussions on the turnover of the company or the massive digitization of a profession.

Your Business Plan Can Always Be Used

It is important to regularly update the business plan because it can always be useful to you, in particular for your past but also future investors. You may be asked to update your business plan regularly, but above all it can be of use to you in the event of a fundraising or when there is a need for financing. While your balance sheets can get you off a lot of times, that isn’t always the case and updating a few years down the road can be time consuming if you’ve been leaving it out for years. So don’t be surprised, and remember to look into it regularly.

From a more global point of view, all of the company’s partners are quite fond of this tool and appreciate that you communicate it to them from time to time if they ask you to. Above all, the business plan can allow you to discuss with your associates, or even yourself, the company’s strategy, which may have changed significantly with feedback from the field. A meeting on this one can be an opportunity to discuss certain points again and to share your convictions on the future before reaching a deadlock. For example, your partner may have a vision for the future of the business that has changed and not tell you about it. Likewise, this can be the case for you.

Which Companies Are Well Established On The Planet?

Their names keep coming up in the media as well as in the daily lives of citizens. They are an integral part of our needs without our realizing it. Focus on the most famous.

1 Saudi Aramco: $ 2,458 Billion

Industry : Extraction and refining of oil and gas.

Products : Oil, natural gas and other petrochemicals.

Saudi Arabian Oil Company, the Saudi national hydrocarbon company, is the world’s largest oil company in terms of production and the richest.

The head office is located in Dahran.

2 Apple Inc. : $ 2,213 Billion

Industry : electronics, IT.

Products : Personal computers and tablets, mobile phones, audio players, etc.

Apple, an American multinational corporation, is the most expensive company in the world. It has thousands of offices, brand stores and service centers around the world and employs nearly 132,000 people.

Apple is headquartered in Cupertino, California, United States.

3 – Microsoft: $ 1,653 Billion

Industry : software development.

Products : Microsoft Office, Microsoft Windows, Xbox.

Microsoft, an American multinational computer and microcomputer, is one of the leaders in the PC software market. In 2020 the company employs 148,000 people in 120 countries.

The company is headquartered in Redmond, Washington, United States.

4 – Amazon Inc.

Industry : Retail business.

$ 1,596 billion

US retail company that sells and delivers a variety of products over the Internet. The company employs approximately 647,500 people and has over $ 162 billion in assets today. Its annual turnover is approximately $ 232 billion.

Amazon is headquartered in Seattle, Washington, United States.

5 – Delta Electronics (Thailand): USD 1,435 Billion

Industry : Electronics and automation.

Delta Electronics (Thailand), a subsidiary of Delta Electronics Inc, is engaged in the manufacture of electronic products. Delta Thailand was listed on the Thailand Stock Exchange in 1995 with consolidated sales now exceeding $ 1.6 billion.

The president of the Thai company is currently Mr. Chang Tsai-Hsinh (Jackie).

6 Alphabet Inc .: $ 1,203 Billion

Industry : Internet.

Google, the internationally renowned internet company, recently changed its official name to Alphabet and it is based in California. At the start of 2020, capitalization exceeds 1,000 billion US dollars.

Google is headquartered in California.

7 Tesla, Inc .: 834 Billion USD

Industry : Automotive and solar energy.

Tesla, Inc., an electric and hybrid car maker headquartered in Palo Alto, California. If Elon Musk is not the founder of the startup, he is the one who brought the company to worldwide fame.

Tesla is headquartered in Palo Alto, California, United States.

8 Facebook: $ 757 Billion

Industry : Internet.

American company that generates a net annual profit of more than 22 billion dollars thanks to online advertising. It is in the TOP 10 of the leaders in terms of profitability. Its net profit increased by 54% during the year 2020.

Facebook is headquartered in Menlo Park, California, United States.

9 Tencent: $ 738 Billion

Industry : Internet.

Products : social networks, instant messaging, mass media, web pages, etc.

Specialized in internet and mobile services as well as in online advertising. Tencent’s services include social networks, web portals, e-commerce, and multiplayer online games.

The headquarters of  Tencent Seafront Towers  (also known as  Tencent Binhai Mansion ) is located in the Nanshan district of Shenzhen.

10 Alibaba Group: $ 620 Billion

Industry : Internet.

Products : E-commerce, online auction hosting, online money transfers, mobile commerce.

A Chinese listed company that mainly derives its revenue from its internet activities, Alibaba is one of the largest virtual commerce platforms in China and around the world.

The head office is located in Hangzhou, China.