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4 Ways Entrepreneurs Can Fix Their Small Business Plans

Pandemic can be the opportunity to prepare your business for the future

Getty Images The COVID-19 pandemic already has had an impact on small and midsize businesses that has lasted for months and could reshape how many businesses plan for their futures. In a June U.S. Chamber of Commerce report, 82 percent of these entrepreneurs said they were worried about the on their businesses. And 55 percent believe it will be six months to a year before business returns to normal. Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. The pandemic and recession have forced many businesses to reinvent themselves virtually overnight. Some have added new products and services to generate more revenue. Businesses that were able to stay open had to institute changes in operations, practices and policies to keep customers and employees safe. Because these changes affect how the businesses operate, the costs they incur and other factors, now is a good time for small business owners (SBOs) to revisit their business plans. "A business plan is not static,” says Cindy Hannafey, a managing director for UHY, LLP, a New York City-based accounting and business consulting firm. “It's that aspirational statement of where you want your company to go in the future.” As you review your own plan in light of the changes this year has brought, here are four areas that may merit specific focus.

1 Define your purpose

Toward the front of the business plan, companies often use mission, vision and values statements to state their reason for being. McKinsey research released in June found that customers actually do look closely at a company's values, and that information affects their buying choices. For example, 1 in 4 consumers said that a plays an important role in their purchasing decisions. Flowers & Gifts 25% off sitewide and 30% off select items See more Flowers & Gifts offers > Hannafey says it's time to think about what matters to your company and ensure that your business is reflecting those values. For companies to clearly assess their best path to move forward, entrepreneurs are going to have to “really understand your vision, your strategy and your initiatives throughout the organization. When I talk about vision, I am talking about your why. ‘Why am I in business? What is my inspiration?'” she says. Review those priorities and weave them throughout the organization's business practices. AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. , ranging from more disinfecting to implementing social distancing requirements in their businesses. Your firm also may have increased remote work dramatically or shifted to videoconferencing to provide information or services. Or stay-at-home orders may have significantly increased online transactions, which require shipping, delivery or curbside pickup options. As you weigh which changes to make to your operations, consider that some choices may open doors to new opportunities, says Vikram Mansharamani, a Lexington, Massachusetts, business advisor and author of Think for Yourself: Restoring Common Sense in an Age of Experts and Artificial Intelligence. “Your addressable market could be bigger, not smaller,” he says. For example, if your art instruction business began offering online classes, you could potentially have customers from around the world versus your local market. Similarly, an e-commerce business could open significant revenue streams. However, those changes do have costs and you'll also need to adjust accordingly. The key is to look at the potential to grow those new segments as you determine if they'll be a part of your future offerings. AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. More on work AARP Membership — $12 for your first year when you sign up for Automatic Renewal Get instant access to members-only products and hundreds of discounts, a free second membership, and a subscription to AARP the Magazine. AARP VALUE & MEMBER BENEFITS See more Health & Wellness offers > See more Flights & Vacation Packages offers > See more Finances offers > See more Health & Wellness offers > SAVE MONEY WITH THESE LIMITED-TIME OFFERS