10 Common Business Plan Mistakes

Business plans are written for many different reasons. Existing businesses need a plan in order to grow by way of:

  1. financing from a lender;
  2. a lease from a major landlord;
  3. insurance coverage for significant increase in risk;
  4. trade credit from a supplier; or,
  5. management wanting to know, in detail, where the business is going, how it is going to get there, what competition it will meet along the way and how they best deal with the market forces.

New businesses face a special challenge as they need a business plan firstly in order to survive and then in order to grow. Once you have been in the marketplace for one full operating year you know how the system works and you can plan accordingly. However, a new business may not know how the market works from experience. So, they must use research, –  industry, market, competition, suppliers, financing, legal, administration, and regulatory and other areas to learn as much as possible what must to included in the plan to give it the quality needed to build the foundation of a surviving and successful business.

All of the risks must be mitigated as much as possible by knowledge if you don’t have the experience. However, mistakes are still made and you need to plan for the mistakes so they can be minimized. Murphy’s Law says that: “If it can go wrong, it will!” So, your business plan needs to incorporate Murphy’s Law as best as is practical. The following link to Small Business BC about 10 common business plan mistakes is a good place to start improving your chances of success, whatever you define success to be.  How do you define “success?”

http://www.smallbusinessbc.ca/starting-a-business/10-common-business-plan-mistakes

– Len, Business Coach

Coaches’ Corner with ETHOS Business Coaches is featured Mondays on the ETHOS Blog.  Click here for Coach Bios.

Visit Business Works to learn more about ETHOS’ Self-Employment Program.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s


%d bloggers like this: