4 Common Mistakes to Avoid in a Business Plan
Houston Business Coaching
Common Mistake #1: Thinking You Don’t Need to Write One - Before we get practical,
let’s take a step back and get clear on the point of writing a business plan.
Well, what is the point?
A lot of entrepreneurs think they only need to develop a formal business plan if they’re seeking investment. This is a costly folly. Writing a business plan gives you a chance to thoroughly evaluate your idea inside and out, uncover its upsides and potential pitfalls, and, most crucially, think up ways to avoid them before they happen. It’s your chance to stare long and hard at your ideas’ weaknesses and decide whether or not you can overcome them.
Common Mistake #2: Speaking in Features - All too often, people pitch their business ideas by rattling off a bunch of features. They tell you what their product does and how it works, including how it has more power, more muscle, more buttons, more everything than the competition.
But they seem to miss a crucial question: Why? Why will people care? Why does it matter that this business exists at all?
This is the juicy stuff. The answer to this question is what drives customer loyalty; it’s what makes people pay more for your product than cheaper, similar offers from competitors. It’s also the backbone of the communities that people believe in and want to be a part of.
Common Mistake #3: Writing Your Business Plan in a Vacuum - It can be hard to project what the future of your business will look like. Plotting out best and worst case scenarios is a worthwhile exercise and a great place to start, but it’s really just the beginning the real learning happens when you turn to other companies who’ve done it before and borrow their recipes for success.
So with your detective hat on, spend some time looking at analogous businesses that admit it you’re a little jealous of. How exactly did they get there? What did they refuse to compromise on? What did they ruthlessly go after? The trick here is to hone in on what made these companies successful then apply those general concepts to your own idea.
Common Mistake #4: Only Looking to the Near Future - When you write a business plan, you’ll need to spend some time in the weeds of detail, but you should also take time to stand on a tall balcony overlooking the entire garden.
What I mean is this: Set aside the number crunching for a while, and take time to analyze the bigger picture. What do you want your business to be known for 10 years down the road? What do you want to go down in history for? Think beyond just the immediate impact of that product.
Source: forbes
Patty Block, President and Founder of The Block Group, established her company to advocate for women-owned businesses, helping them position their companies for strategic growth. Charting the course for impactful, sustainable, profitable businesses, the beacon is control: of your strategic direction, your money, your time, your staffing, and your ability to bring in business. The Block Group brings together the people, resources and ideas that build results.
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