Business Plan Failure?
The number of times a client has begun with the words “Our current plan just isn’t working..” is beyond astonishing. It is frustrating being a business owner and facing difficulty with your company’s success. The results tend to speak for themselves and the problem is one of two things; either you’re not working the plan or the plan’s not working for you. Writing a business plan is simple, but implementing it and making it work for your business is difficult. A business plan is a crucial part of your entire business existence; it serves the purpose of a roadmap that can lead you to success and prevent you from making moves that can be potentially harmful to your company. Without a plan, you are left wondering what step to take next, or what assets need improving. It’s important to prioritize the flaws that prevent your business plan from succeeding and replace them with strengths.
One of the main reasons why business plans fail to work is due to insufficient funding and lack of capital. Due to this, you are not giving a financially stable foundation for your business to build on. This can occur with business owners underestimating the financial cost of their company. You must lay out all your expenses entirely and calculate how much money you need to start/operate your business. Count in costs such as permits/licensing, marketing, legal fees, amongst other liabilities that must be prioritized.
Another main contributor to a business plan fail is the lack of realism. For many start-up companies, it is quite easy to go overboard with goals due to excitement and anticipation. But it is vital to remember that you should set goals that are compatible with the state of your company. If you are setting up a new venture and think you will be selling millions on units in a short time span, it is time to rethink your business plan. You must keep in mind that during the first few years of a developing business, revenue may not be as high as you expect it to be, so refrain from stepping over what your business can achieve and give it time to advance instead.
Letting One Focus Overpower The Entire Plan
One thing to constantly keep in mind is to give equal attention to all aspects that make up your business plan. Do not favor one portion over another. When you fail to address the other parts of the plan, your business becomes lopsided. You begin to zoom in on a certain segment and you unconsciously abandon the rest of the features. Prioritize the important keys of the plan, do not pick one and go with it. Remember that your business plan should not have 20+ points. That is too unorganized keep track of and frankly, too complicated. Keep it short and sweet. Allow the main important points to be your centralized vision.
We specialize in business plans for all types and entities, whether it’s a non-profit organization or a personal family business. Call us for a free consultation regarding the future and blueprint of your company!