The Key Reason Why Business Plans Fail And How To Avoid It

23 Jul
2018
Business Plan

The reality is that most business plans are fantastic works of fiction. This is one reason why most businesses fail to survive 5 years. The real benefit of business planning is not the document but rather the process you go through. When you understand this, you then create a factual business plan that lays the foundation for success.

 

Role of the business plan

 

Many business owners do not have a formal business plan. They have some ideas running around in their head and like all of us get caught up in work that never really plan these out. Worst still, they never critically analyse if the idea is solid or not. In fact I have seen so many businesses fail because of a lack of planning from the start. If a business plan was conducted properly then they would have saved themselves tens of thousands of dollars and heart arch.

 

One of the most common comments I hear from business owners when discussing a business plan is that they do not have time to do them and besides things change. I agree with the fact that we operate in a dynamic environment. However, if you do not know where you are going then every road will get you there. Success is not what we say yes to but rather what we say No to.

 

The Key Advantage

Business Plan growth

The real advantage of a business plan is not the document itself. Although it is a great outcome of the process! In fact the REAL BENEFIT is the thought process that you go through to confirm that your business idea is actually valid. To do this we must take off our rose tinted glasses and gather facts on the real situation.

 

The business plan needs to look at the operations and identify how the business will work. The same applies if you are introducing a new product, service or business unit into your business. This plan then helps set out a blue print which has considered who is responsible for what. It takes into account the market and who is out there servicing your potential customers, what makes you different and what marketing you will do to attract and grow your customer base.

 

And finally, it helps you understand the financial aspects of the business. This is very important if you are seeking finance. Even if you are not, this is laying out the road map for your success.

 

Sections of your business plan

 

Here are the sections your business plan should have:

  • Executive Summary
  • Overview and Objectives
  • Products and Services
  • Market Opportunities
  • Sales and Marketing
  • Competitive Analysis
  • Operations
  • Management Team
  • Financial Analysis

 

The team at Grow Your Profit can help you create a factual business plan which lays out the steps for success. We work with business owners to align the three key drivers of sustainable profit so businesses can grow and prosper.

 

If you need help then contact us at results@growyourprofit.com.au or 02 8091 6435

 

Pat Abraham

Managing Director

pat@growyourprofit.com.au

Mobile:   0438 474 758

 

Pat Abraham
author

Leave a reply

Your email address will not be published. Required fields are marked *