Your business plan is a roadmap. Use it to steer your
business away from the inevitable potholes and dead-ends.
1. You are
only thinking of the present. Get as detailed as you can
with your forecasting. For instance, by looking ahead, you might find that your
margins will shrink to a level with which you’re not comfortable. Better to
know now that you’ll need to plan for a new higher margin product or find more
profitable clientele. Ask yourself what your challenges will be next month,
next year and five years from now and build a company that can survive those
upsets.
2. You aren't writing for a specific
audience in mind. You
might need to have more than one business plan. It might be written for certain
situations, such as a short miniplan designed to be downloaded and read on a
smartphone or a 20-slide Power Point designed for formal presentations. When
you adjust your format, consider your audience -- venture capitalists,
angel investors, partners, lenders – and make sure that this version answers
that group’s questions.
3. You
don't address the competition. Know
what your competitors are doing right, what they are doing wrong, who their
customer base is and what sets your business apart. Your plan should clearly
outline what you do better so you can capitalize on your advantages, whether
that's your previous expertise, proprietary technology or a unique insight
into what customers are after. If you don’t do this, your plan won't help
capture the attention of the people you most want on your team.
4. You
don't show them the money. Specificity is key,
and you won't be taken seriously if you don't explain how much you are charging
and why, how much the logistics (i.e. shipping) will cost, and offer
projections for when you will be profitable.
5. The
devil is in the details. Back up what you say. If
you think you’ll be an industry leader in six months, explain why that might be
the case. Be conservative, realistic and careful. To that end, make sure you
proofread your plan and that it’s easy to understand. The document represents
you and how you’ll run your business. Make sure it represents you well.
6. Believing
too much in your plan. Planning a business isn’t running a business. Industries change
and companies have to pivot. Don’t let administration of the business plan
stand in the way of executing and acting on opportunity.
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