When did you last review your business plan? Not since you started your business? If not, there’s no need to worry, now is the perfect time to look into it.
Your business plan originally outlined your business idea, goal, mission etc. But as always, plans can change over time and so should your business plan. Especially when unpredictable events like COVID-19 happen, even the strongest of business plans can go out of the window.
It’s therefore recommended that you frequently review and amend your business plan based on the changes affecting your business. ‘But it took forever to put that business plan together’, we hear you say and yes, it’s certainly not a quick task but an important one that will help to keep your business on track.
To make it easier for you to optimise your business plan, start by answering the five questions below.
1. Is your value proposition still valid?
Your value proposition is a statement that outlines what unique value you bring to your customers. Your customer promise, if you will.
It should also take into account what competitive advantage your product or service offers to your target market. However, with the changing circumstances, whether they are driven by the economy, your competition or a newly emerging consumer need, you need to ensure that your business continues to offer unique value to your customers.
If you feel that your value proposition hasn’t but needs to change, it might be a good time to rework your competitor analysis and target market needs to identify new business growth opportunities for 2021.
2. Has your target audience changed?
What have you learned from the previous financial year? What consumer audiences have responded well to your offering and why? These are some interesting questions that can help you identify what’s working well and what needs improving.
Another angle to look at is what niche audiences you have not yet targeted, which could present a promising business opportunity. If you are targeting too broadly, it can make it harder to offer a competitive product or service. Instead, try to define very specific niche markets that your company is best positioned to help.
3. Have you created new revenue streams?
Sometimes the best opportunities suddenly arise out of nowhere. You launch a product or service and receive feedback from your customers, which opens new opportunities to offer value and generate revenue for your business.
Especially with the social distancing rules during this global pandemic, many businesses have had to reinvent their business models in order to offer experiences that are still relevant online when offline is no longer a possibility.
If you already have some new ideas on how to expand your revenue streams, you might also need additional funding to help revive your business in 2021.
At Lumi, we can help you with flexible business funding in the form of unsecured business loans or short term business loans ranging from $5,000 to $300,000. Or if you are looking for something even more flexible a business line of credit will provide you access to ongoing funds when you need them. The advantage with the business line of credit is that you only pay interest on what you actually borrow.
4. Are your finances up to date?
It’s important to keep your finances in check, especially when looking to apply for a small business loan. Lenders need to be able to understand your current cash flow, how much money you need to borrow and what your revenue forecast looks like.
Keeping a clean track record of your finances will make your loan application even easier. Our small business loan online application takes less than 5 min. You can upload all the relevant documents online and if you provide us with all the required information, we can provide you with funds on the same day. While extra funding can help you manage unexpected costs, it’s important to be realistic and avoid asking for more than you need.
Wondering if you are ready to apply for a small business loan? If you need help with your small business loan application, don’t hesitate to get in touch with us. Our team will assist you with any questions you may have regarding the requirements for unsecured business loans or business line of credit.
Your Lumi team