October 10, 2008

How not to plan your business

Having a business plan is one of the more important yet boring propositions that a business needs to do, it can be used to provide an insight into how the business is set to grow and expand. However, for some businesses, producing the business plan can go wrong in many ways and here are some of the reasons.

Incredible financial projections
Lack of a viable opportunity
No clear route to market
Overestimation of revenues
Lack of appreciation of the importance of good cash flow management
No clear objective
No evidence of real demand
Business plan inconsistencies
Playing down the competition
Rushing the output

It is much better to be conservative than over estimating what the business is going to achieve, the
goals should be attainable not projected to look good on paper.

Source [Bplans]