Business Plans - Avoid the common Pitfalls
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plans can be
tricky or uncomfortable things to write, balancing the obvious concerns
bank manager against your own over whelming confidence can be a real
act. Appear too confident with your sales predictions and the banks may
that you havenít considered or allowed for any contingencies, be too
pessimistic with your sales predictions and the profits may not be
in your plan and further concerns are raised.
Offices is going to
look at the common mistakes and pitfalls of writing a Business Plan
this week, weíll
try and help you
understand the views of the banks, what they may look for and how you
address those concerns. Weíll also point out the importance of the
Plan for any business, start up or established, and how it should be a
entity, evolving with the business and the business environment. The
to be flexible but resilient enough to not only cope but conquer the
all businesses face in todayís marketplace.
What Makes Business Plans Fail?
without doubt the main reason for failure! Whilst itís obviously
be optimistic and confident itís essential to be able to temper oneís
long enough to be honest and realistic.
when applying for a loan or when raising funds may appear better on
potentially even to your bank manager but what happens when the figures
realised or forthcoming? Whilst
costs such as rent, loan repayments or hire purchase agreements are as
implies, not changeable, they will need to be paid at a set date.
up and down by 10,20 or even 40% to reflect how your cashflow will be
This will provide an insight into what you have to pay with limited
can help you organise how and what you can cut back on to balance the
Itís essential to update your cash flow forecast when you have started
so that actual sales figures can be entered alongside the projected
see how your plans are affected.
Market research Ė Donít even consider
skipping this step!
probably the most
important step any potential new business owner can take but itís
many companies miss out this vital step. Check out the competition,
websites for information, check out the Facebook, Google + pages and
feeds to see how companies that are actually trading do things.
they sell and for
how much, what quality are the products that they sell and do they
for the customer? Perhaps youíre in a service industry where the direct
comparison of products isnít relevant, check out the companies that
business with Ė what size and scale are they? You need to ask yourself
potential business owner the questions your potential customers are
ask yourself in regards to Market Research:
I was approached to invest in this business, as you are approaching the
would I invest my hard earned money?
why not? You may have identified potential weaknesses in your planning.
this a product or service I would purchase or pay for?
not, why not? You may have identified potential weaknesses in your
About the Author
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Article Published/Sorted/Amended on Scopulus 2013-09-17 10:38:28 in Business Articles