How to Set Up a Business Plan Monitoring Process

Business owners often think their business plan is a document that only needs to be used when looking for funding opportunities. However, a comprehensive business plan also provides a great way for monitoring the progress of your company on a point-by-point basis. You gain the upper hand on competing businesses when you set up a business plan monitoring process from the start.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• Job analysis
• Monthly financial statements
• Business plan analysis

Monitor the Progress of Your Business Plan

1. Work with an experienced business consulting firm to develop a business plan monitoring process. Companies like BizPlanit provide low cost solutions for business owners who want to monitor the evolution of their businesses in relation to their original business plans (see Resources below).
2. Distribute copies of your business plan to department heads, executives and other high level professionals as your company begins work. You need your company's leaders to understand every aspect of their work in order to effectively monitor progress.
3. Utilize monthly financial statements as part of your business plan monitoring process. Documents demonstrating your profits, debits and investments can be used as a means of comparison against your projected profits or monthly budgets. Provide notes on any major differences between these statements and your plan to key members of your company as a motivational tool.
4. Schedule an annual meeting of every employee in your company to monitor the evolution of your business plan. This meeting should start with raw data on inventory, profits and other goals that show the progress of your company towards goals in the plan. You should also include smaller group sessions where employees can provide input on the monitoring process and progress towards leadership in your particular industry.
5. Conduct a company wide job analysis during the set up of your business plan monitoring process. You should analyze each position in your company to determine its role in fulfilling the goals laid out in your initial plan.
6. Audit your company's inventory and remote offices on a regular basis. As you set up a monitoring process for your business plan, you need to know the exact amount of money you are putting into all aspects of your business. Lost products or wasted time in remote facilities can harm your bottom line and need to be addressed immediately.

Tips & Warnings

• Create a business plan monitoring process before you start submitting your plan to investors. The details of your plan are fresh in your mind after the writing process is complete. You should write a one page summary of your monitoring process to help ease concerns of investors about staying true to the business plan.