Dear Start-up Founder, we know it’s a bit lonely up there! Having a tough time juggling multiple things? Don’t give up yet! Remember giving detailed attention to every aspect is significant. Thus, when it comes to your business pan, keep in knowledge it’s your key to success. Thus, browse through these common mistakes and eliminate them from your business plan.
Not Drafting One:
If you are wearing the hat of an entrepreneur minus a plan, you are bound to FAIL!! If you are still hunting for reasons to arm yourself with a business plan, we are happy to state : defining one will be the key to your success, it will test the feasibility of your idea, will aid you in securing bank loans and attracting investors, making business planning manageable and effective.
Not Having Precision on the Business Purpose:
Wondering how metamorphosis from a vision to a successful business is going to take place. Your business plan will answer this. The business plan will also be your go to paper for everything varying from the amount of research to how the finished plan will look like.
Test the grounds of your plan by answering these questions: Is there a market for it? What’s the profit potential of this business? Is the market saturated?
What are the obstacles to my business plan? Do I have what I need to see this through?
Not having a clear business model:
Business plan is successful only when it spells profit. A good business plan defines the roadmap for generating revenue over and above your expenses.
Not getting your hands soaked in research:
The effectiveness of your business plan stands directly proportionate to the amount of research you have done. Answer the pointers, Will this work? What are the current trends in this industry? How will this business counter what its competitors are doing?
Not looking into market realities:
Market test your product prior to selling it. Also, know your competition. List all your competitors
Not preparing for financials:
Put together these financial statements: the income statement, the cash flow projection and the balance sheet.
Figure out how much money you need to start and operate your business. Keep in knowledge, to be realistic about expenses and do not be overly optimistic about your new business’s prospects.
Not working on it continuously:
As you climb the ladder from being a startup to the next phase, keep editing your business plan and add the necessary elements.