How to Use Your Business Plan as a Decision-Making Tool
- samueljpart
- Feb 26
- 4 min read
Your business plan isn’t just something you write once—it’s a tool you should refer back to regularly to guide key decisions.
When Should You Revisit Your Business Plan?
✅ Every month—to check if you're on track.
✅ Before making major decisions—hiring, expansion, investment, or a pivot.
✅ When something isn’t working—low sales, cash flow issues, slow growth.
✅ When opportunities arise—new partnerships, funding, or market shifts.
Instead of guessing, your plan should give you the answers.
📌 5 Key Questions to Ask When Reviewing Your Business Plan
Every month, take 30 minutes to check in on your plan. Ask:
1️⃣ Are we hitting our targets?
Have we met our revenue, sales, or growth targets?
If not, why? What’s slowing us down?
2️⃣ Are our marketing and sales strategies working?
Where are our best customers coming from?
What lead generation tactics are converting?
What’s underperforming and needs adjusting?
3️⃣ Is our financial position strong?
Are we making more money than we’re spending?
How is cash flow looking for the next 3-6 months?
Do we need to adjust pricing, cut costs, or seek investment?
4️⃣ Do we need to adjust our team or resources?
Do we have the right people in the right roles?
Is our workload sustainable, or do we need to hire/automate?
5️⃣ Is our long-term vision still aligned?
Are we working towards our original mission?
Have any new opportunities or challenges changed our direction?
If these questions raise red flags, that’s a sign your business plan needs an update.
📌 How to Use Your Business Plan for Key Decisions
If you’re wondering:
🔹 Should I hire someone new?
🔹 Should I invest in marketing or product development?
🔹 Should I raise my prices or expand into a new market?
Your business plan should already have the answers.
Here’s how to use it to make better decisions, with real-world scenarios.
1️⃣ Every Decision Should Align With Your Goals
Your business plan defines your long-term vision and short-term priorities. If an opportunity arises, your plan helps determine if it’s worth pursuing.
📌 Before making a decision, ask:
✅ Does this move get me closer to my long-term goal?
✅ Does it align with my strategy, or is it a distraction?
✅ What impact will it have on my finances, team, and operations?
🚀 Example: A freelance graphic designer is considering launching an online course on branding. She checks her business plan:
Her main goal is scaling revenue without increasing client workload. ✅ Course fits.
Her plan highlights social media as a key audience driver. ✅ Course launch can leverage this.
Cash flow is tight this quarter. ❌ She decides to soft-launch with pre-orders before investing heavily.
💡 The plan keeps her focused on scaling smartly, rather than adding a new project impulsively.
2️⃣ Your Financial Forecast Tells You What’s Possible
Many business owners hire, invest, or expand based on gut feeling. Your business plan should include cash flow forecasts to guide these decisions.
📌 Before spending money, check:
✅ Can I afford this investment based on my projections?
✅ If sales dip, how long can I sustain this expense?
✅ What’s the return on investment (ROI), and when will I see results?
🚀 Example: A coffee shop owner wants to open a second location. Looking at the plan:
Projected revenue for this year covers current expenses—but not expansion. ❌
Their strongest revenue stream is morning commuters. ✅ New location should be in a high-footfall area.
Cash flow shows seasonal dips. ❌ They decide to delay the expansion until post-summer.
💡 The plan helps avoid a costly mistake by ensuring financial stability before expansion.
3️⃣ Your Sales & Marketing Plan Helps Prioritize Growth
Your business plan should include where your leads and sales come from. Instead of guessing, use past performance to make growth decisions.
📌 Before trying a new strategy, ask: ✅ What’s currently working, and how can I scale it? ✅ Do I need to fix something in my existing funnel before adding more? ✅ Where are my customers already engaging, and how can I do more of that?
🚀 Example: A coaching business is considering investing £5K in LinkedIn ads. Looking at their plan:
80% of current clients come from referrals. ✅ Strengthen referral incentives first.
Last paid ad campaign had a poor ROI. ❌ Adjust strategy before investing again.
SEO blog content is driving organic leads. ✅ Put more resources into content before ads.
💡 Instead of rushing into paid marketing, the plan shows where organic growth is already working.
4️⃣ It Helps You Decide When to Hire or Scale
Many businesses hire too early or too late because they don’t track capacity and workload properly. Your plan should tell you when it’s time.
📌 Before hiring, ask: ✅ What specific tasks will this person take on? ✅ Can I afford this salary based on my forecast? ✅ Will this hire generate enough value to justify the cost?
🚀 Example: A digital agency owner feels overwhelmed and wants to hire a project manager. Looking at the plan:
Revenue is steady but not growing fast enough to afford a full-time hire. ❌
The team is spending 10+ hours/week on admin. ✅ A hire could free up billable hours.
Cash flow allows for a 6-month freelance contract. ✅ They start with a part-time contractor before committing to a full-time hire.
💡 The plan helps balance need vs. affordability, preventing a rushed hiring decision.
Final Thoughts: Your Business Plan = Your answer to the "why?" question.
Instead of making decisions on instinct, use your business plan to: ✅ Align choices with your long-term strategy. ✅ Use financial forecasts to assess affordability. ✅ Prioritize growth strategies based on data. ✅ Make hiring and scaling decisions with confidence.
📌 Make it a habit—review your plan every month and whenever big decisions arise.
If your business plan isn’t helping you make decisions, it’s time to refine it.
📅 Book a free 30-min call, and let’s turn your plan into a real leadership tool.
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