Small Business Shared Interest Group

Every business should begin with and maintain a thoroughly detailed business plan. Successful businesses outline their resources,  strategies, opportunities and processes before they begin and continuously revise their plans as needed. Sometimes small businesses neglect this habit, because the key decision makers are busy tending to numerous other responsibilities. As an owner of a small business,  I struggle to devote time to revising my written plan. When I make time to write down my business plan,  even if it is a brief summary, my business improves significantly.  How often does your business revise its business plans? What do you find most helpful about your business plan?

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Heather Bain CMA, CPA
Consultant
Bain CPA Business Strategies, LLC
Houston TX
United States
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I agree, business plans are important for successful business growth, but are often overlooked.  They also serve as a useful tool to support a business' intent to make a profit.  For IRS tax purposes, if an owner's business does not show a profit in at least 2 out of the past 5 years, it can be deemed a hobby by the IRS instead of a business, and the losses from the "hobby" are then disallowed.  If audited by the IRS, a written business plan may help owners that have not shown a profit convince the IRS they are pursuing a business and not a hobby.  If using for this purpose, we recommend our clients update their business plan at least every 3 years.

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Amanda Bernard CMA,CPA,CFE
Director/Manager
Douglassville PA
United States
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​We approach business plans similarly to Standard Operating Procedures (SOPs). At our company, we recognize the critical importance of maintaining well-documented SOPs to ensure operational consistency and excellence. While our SOPs may not be highly formalized, they are comprehensive and accessible, serving as essential guides for our team.

​🔥🎯🤩

We have established a practice of revisiting and updating these procedures whenever there are changes in roles or responsibilities. This approach ensures that our SOPs remain aligned with our evolving organizational structure and continue to meet our operational needs.​

Deviations between documented processes and actual practices are viewed with concern, as they can lead to inefficiencies and misunderstandings. Our employees, who are deeply committed to our company's values, take pride in their work and prefer to be well-prepared and informed. To support this, we emphasize a culture of continuous improvement through:​

• Strategic Hiring and Promotions: We focus on bringing in individuals who align with our values and offer opportunities for growth within the company.​

• Active Monitoring: Regular assessments help us identify areas for improvement and ensure that our processes are being followed effectively.​

• Recognition and Praise: Acknowledging and celebrating achievements fosters motivation and reinforces positive behaviors.​

By integrating these practices, we aim to maintain a dynamic and responsive environment where SOPs serve as living documents, continually refined to support our team's success and adaptability.

Our employees don't like to look incompetent, I dont either. As such, we try.

😄😇

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Ilya Ilienko, dual MBA, CPA, CMA
Board Member / Director
East Coast - United States
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It helps to have a structure in place to create a business plan. There are several business plan blueprints available. The one that I use for my firm and recommend to my clients is EOS or Entrepreneurial Operating System. https://www.eosworldwide.com/ You can read the book Traction by Gino Wickman if you want to go solo. Another option is to hire a business coach to help your company build the business plan.

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David Belnap, CMA, CSCA, CPA
David.Belnap@...
Hollywood, FL
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This is a fantastic discussion - business planning is so important, its the bedrock, the foundation. Its important at every step of the way - startup, expansion, scaling down, selling, acquiring... Business plans should be top of mind, always in the back of the head, as such leaders can instinctively align strategy with the purpose and aim of the org. What do you guys think? Thanks, you guys for promoting the thought subject --> @Amanda Bernard @Heather Bain and @David Belnap

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Ilya Ilienko, dual MBA, CPA, CMA
Board Member / Director
East Coast - United States
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