Five signs that your business plan needs to be revisited in today's economy

A BUSINESS plan is never set in stone.

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It should reflect the realities of your operating environment, especially considering how quickly economic conditions seem to be shifting in 2025.

While some economists remain optimistic, predicting growth of up to 2.1% this year, the South African Reserve Bank (SARB) recently trimmed its 2025 forecast down to 1.7%, citing ongoing supply constraints and weak demand.

With the effects of global trade tensions, rising costs and looming tax increases already being felt across the small to medium enterprise (SME) sector, it may be necessary to revisit your business plan.

Here are five signs that your plan may no longer be fit for purpose in today's economic environment:

1. Your revenue assumptions haven't changed

If your plan still assumes consistent or growing customer demand based on pre-2025 expectations, it may be out of step with reality. As of now, VAT is set to increase to 15.5% from 1 May and again to 16% in 2026.

This will erode consumer buying power and place added pressure on input costs particularly for SMEs that are not VAT-registered or that supply end-consumers directly.