Creating a business plan is the smart way to launch a new business project. Smart thinking leads to smart action, and this is what leads to great success. It’s not just about the plan; it’s very much about the planning. In other words, it’s not just about drawing up the document; it’s about the research you have to carry out, the tough questions you have to ask yourself. It’s about the creativity of your approach, and about the value, you are creating for your customers.
The process of planning will also save you a lot of time and money by helping you foresee the challenges and avoid costly mistakes.
There are seven common mistakes that can be avoided or should be fixed in early-stage business plans; it’s important to know what they are and how you can prevent them from happening:
Don’t neglect your cash-flow
Cash is King and focusing on the Profits instead of the cash flow can be critical as you don’t spend profits in business, you spend cash. The lender is interested in your earnings! You also need to have the cash to spend to its important to have a management strategy in your business plan.
It’s a great idea, but you need to be practical
You don’t need a great idea to start a business; you need time, money, perseverance, and common sense. You need to focus on the How, Where’s and When’s not so much on the What’s because even though the idea is there, you need to be able to make it happen. It’s not so much about the idea it’s about the execution!
You haven’t been specific enough
The objective of a plan is to have results; you need to be able to test and measure these results. Be more specific and set out realistic goals and timeframes. You also need to be able to produce the results.
Your figures are not realistic
Your expectations and numbers need to be realistic in your plan. Be conservative so that you can defend them. Having SMART goals will not be enough to make your plan actionable. Project an average growth over time and don’t have High expectations that will only disappoint you in the long run. Most start-ups overestimate the turnover and terribly underestimate the expenses.
Don’t forget to prioritise
Most of the goals or tasks that need to happen are important to you, but it’s essential to prioritise these tasks to be more useful in building your business. You need to understand that you cannot do everything all at once. It will take time, and you need to make sure you schedule your priorities. Concentrate on tasks that allow you to earn money!
Research – Research – Research
It’s great to have lots of experience in your field, but you still need to research what’s happening around you. This is key to developing your plan and keeping up to date with the market, competitors and other ideas that are out there. You want your business idea to be successful, learn more about it!
Keep it tidy and organised
Chaos and no structure will only prevent you from achieving your plan. You need to ensure that the layout of your business plan is properly written, professional and organised so that you keep your readers interested, and the impression you give is a good one.
Now that you have an idea about these mistakes we can help you to fix them so that you can grow your business and ensure that your plan works for you, especially when it comes to securing funding.