Whether you’ve got a great idea for your business venture or you’re following in the footsteps of a mentor or competitor you admire, it’s important to create a business plan. A business plan is a summary of everything you plan and hope to achieve – and how you are going to achieve it.
There are many ways to create your business plan, but here are the mistakes you need to avoid:
1. Putting It Off
When you’re starting your business, things are busy. You have a lot to do in a short period of time to start generating income. And while a few lucky entrepreneurs will have a natural knack for business, we all need a road map. You’ll be more confident in your business and more prepared as you move forward if you create a plan.
2. Not Having A Purpose Behind Your Plan
There are different kinds of business plans, and the plan you write should have a purpose in mind. Obviously, it’s a picture of your business on paper, but who is it for? Is it a blueprint for you and your employees? Is it a plea to a potential lender for a business loan? Are you trying to attract investors? You should have these goals in mind and they should affect the way you write.
3. Not Understanding Your Own Business Model
Planning to go into business is not a business model. A business model is a plan for creating revenue and income beyond your expenses. Even if you have been in the industry for a while, putting your expenses, plan for revenue, and actual revenue down on paper will help you understand how your business is working. You’ll be able to see and track your progress (and missteps) and better prepare for the future.
4. Not Being Willing To Change
You may have a great idea for your business methods – an idea you’re convinced will work. It can be difficult to part with a novel idea. Having the flexibility (and humility) to move on when your plan doesn’t prove successful is an important skill. By all means, ambition and ingenuity are crucial for business survival, but so is knowing when it’s time to close a door on an idea.
5. Setting and Forgetting
If you take the time to write a well-thought-out business plan, then never look at it again, you’ve wasted time, energy, and the business itself. A business plan is a plan for success – don’t ignore it. As you move through the other stages of your business, you’ll want to edit, add, and revise your plan to make sure you stay on a path to success.