Every California entrepreneur who starts a new business wants to see it grow. During the business formation and planning stages, most people will create a five-year plan that takes growth into consideration. However, it may be more advantageous to revisit that plan each year and make adjustments based on how the business is doing at that time.
When a company is first formed, it is difficult to predict just how the business will progress. Taking the time each year to examine what was profitable during the prior year can help shape the year to come. This is also the time to eliminate any obstacles to growth in the first year, and to make up any deficiencies noticed in the way the business is run.
Depending on how the previous year went, it may be necessary to set new goals for the future. Once goals are set, a plan needs to be formulated in order to meet them. Other considerations such as cost and feasibility also need to be dealt with before any plan is put in motion.
Without a plan, a business owner's goals may not come to fruition. It may also be a good idea to not get overly ambitious. Trying to grow too fast could have repercussions.
In addition to examining the business aspects of business formation and planning beyond the first year, certain legal considerations also need to be addressed. All California businesses must meet certain legal requirements. All of an entrepreneur's planning could be for naught if a legal misstep or other entanglement arises.
Source: USA Today, "How an annual plan can help your small business grow", Rhonda Abrams, May 5, 2015