While including the necessary items in a business plan is important, you also want to make sure you don't commit any of the following common business plan mistakes:
Putting it off. Too many businesses make business plans only when they have no choice in the matter. Unless the bank or the investors want a plan, there is no plan.
Cash flow casualness. Most people think in terms of profits instead of cash. Understanding cash flow is critical. If you have only one table in your business plan, make it the cash flow table.
Idea inflation. Don't overestimate the importance of the idea.Plans don't sell new Business ideas to investors. People do. Investors invest in people, not ideas.
Fear and dread. Doing a business plan isn't as hard as you might think. You don't have to write a doctoral thesis or a novel.
Spongy, vague goals. Leave out the vague and the meaningless babble of business phrases (such as "being the best") because they are simply hype. Remember that the objective of a plan is its results, and for results, you need tracking and follow up.
One size fits all. Tailor your plan to its real business purpose. Business plans can be different things: they are often just sales documents to sell an idea for a new business.
Diluted priorities. nRemember, strategy is focus. A priority list with 3-4 items is focus. A priority list with 20 items is certainly not strategic, and rarely if ever effective.
Hockey-stick shaped growth projections. Sales grow slowly at first, but then shoot up boldly with huge growth rates, as soon as 'something' happens. Have projections that are conservative so you can defend them.
via. photo.
Putting it off. Too many businesses make business plans only when they have no choice in the matter. Unless the bank or the investors want a plan, there is no plan.
Cash flow casualness. Most people think in terms of profits instead of cash. Understanding cash flow is critical. If you have only one table in your business plan, make it the cash flow table.
Idea inflation. Don't overestimate the importance of the idea.Plans don't sell new Business ideas to investors. People do. Investors invest in people, not ideas.
Fear and dread. Doing a business plan isn't as hard as you might think. You don't have to write a doctoral thesis or a novel.
Spongy, vague goals. Leave out the vague and the meaningless babble of business phrases (such as "being the best") because they are simply hype. Remember that the objective of a plan is its results, and for results, you need tracking and follow up.
One size fits all. Tailor your plan to its real business purpose. Business plans can be different things: they are often just sales documents to sell an idea for a new business.
Diluted priorities. nRemember, strategy is focus. A priority list with 3-4 items is focus. A priority list with 20 items is certainly not strategic, and rarely if ever effective.
Hockey-stick shaped growth projections. Sales grow slowly at first, but then shoot up boldly with huge growth rates, as soon as 'something' happens. Have projections that are conservative so you can defend them.
via. photo.
