Business Plan Mistakes

Posted On 07.50 by rea |

Put it off
For many companies, business plan only when they have no choice in this matter. Unless a bank or investors who want to plan, no plan.

Do not wait to write the plan. "I can not make plans. I am too busy to be a problem," the business. That more work will need to plan. If you are in the fire, you have to build four or sprinkler break. You can lose the whole forest for paying too much attention to burn some trees.

Cash accident.

Most people think in terms of profits, not cash. If you imagine a new business that you trust, whether the cost to install the product, which can sell and what profit per unit. We believe, as the company's sales minus the cost, the same benefits. Unfortunately we can not for profit company. We spend money. So understanding cash flow is very important. If only one table in the business so that the cash flow table.

The idea of inflation.

Do not be too important ideas. You need not be a good idea to start a business, you need time, money, perseverance and common sense. Some successful business based on new ideas. New ideas that are difficult to sell to that, because people do not understand new ideas, and often are not sure if it works.

New business plan to sell the idea to investors. Dude. Investors invest in people, not ideas. This plan, if necessary, only one way to convey information.

Fear and restlessness.
Doing business plan that is not difficult, as you might think. You do not need to write a novel or a PhD. There are good books to help the advisors from the SME Development Center (SBDC), business schools, and there is no software available to help you (as a business plan Pro, and others).

Elastic, vague goals.
Babble leave vague and useful business phrases (such as the "best"), because there is only hype. Remember that the goal of the plan is the result, and the results you need to track and follow-up. You must be at a time, responsibilities, milestones and budget. You can then follow-up. No matter how well or very well presented, means nothing, except the results.

One size.
Plan your business to the real destination. Must be other businesses, often just sales documents to sell the idea to create a new business. You can also use a detailed action plan, financial plan, marketing plan, and even personnel plans. Can be used to start a business, or just good business.

Diluted priorities.
Remember that the strategy approach. A priority list with 3-4 points. A priority list of 20 items that are not strategic, and rarely if ever effective. Some items in the list, less importance to the individual.

Hockey stick of growth estimates.
Sales grow slowly at first, but then the growth rate immediately after the shoot daring things happen. This projection is conservative, as can be. If you doubt, is less optimistic.
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2 Response to 'Business Plan Mistakes'
  1. gooddell'> 28 April 2009 07.58

    yeah good idea


  2. Anonim'> 13 September 2009 22.21

    I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.



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