Harper James is a modern, full-service UK commercial law firm for ambitious businesses, from start-ups and scale-ups to established companies, advising on the laws of England and Wales. A growing business plan should be a working management document, not a forecast prepared once a year and then filed away.
Review the plan by testing its main assumptions against recent trading data. Compare actual sales with the forecast, examine gross margin by product or customer, and check whether payment terms are putting pressure on cash flow. Separate committed income from pipeline opportunities, and record the evidence supporting each major assumption.
Use a rolling forecast alongside the longer-term plan. Build at least three scenarios: the expected case, a slower-growth case and a case involving a major cost or funding change. Set review dates for the assumptions that matter most, such as customer retention, hiring dates, borrowing costs, stock requirements and the time taken to convert leads. Explore further business planning resources for additional material on reviewing strategy and operations.
Growth often exposes weaknesses that were manageable at a smaller scale. Review whether the management team has clear responsibilities, whether operational processes are documented, and whether systems can handle higher transaction volumes. Check working capital, debtor days, supplier concentration and the cash required to fulfil new orders before committing to expansion.
The legal structure should match the plan. Review the articles of association, shareholder agreement and cap table before a fundraising or ownership change. Confirm that employment contracts and incentive arrangements reflect the intended hiring plan. Check that intellectual property has been assigned to the company, customer and supplier contracts support the proposed model, and data protection responsibilities are allocated clearly. A planned move into new premises also requires early review of the commercial lease, break clause, rent review and dilapidations position.
End the review with a short action register. For each issue, name an owner, a deadline, the expected cost and the decision required. Record which assumptions need better evidence, which risks require board approval, and which targets will be monitored each month. Revisit the plan after a funding round, major contract, acquisition, senior hire or material change in trading conditions. This keeps strategy, cash management and legal preparation aligned as the business grows.