Common Business Plan Mistakes to Avoid.....

In the last 8 years I have been involved with business planning, in between this time, I have seen all different styles and fashion of plans change a lot, but the fundamentals remain fairly constant. As a recap to what you've already been told, your business plan should tell a compelling story about your business, explaining who, what, when, where, how and why. A business plan should be focused and clear. It is not about the number of pages or style of the cover, however; a basic business plan should not exceed 22 to 25 pages. To help you craft a plan that hits all the right notes, here's a list of some of more common business planning mistakes you should avoid:

1. Don't put off writing a plan. Do not wait until you have enough, don't wait until you have the right people, and definitely don't wait until there's an urgent reason you suddenly need a plan. Instead, just just do it now. Recognize that you need a business plan and that your first step is to prepare your first plan.

2. Don't confuse cash with profits. There's a huge difference between the two. Waiting for customers to pay can cripple your financial situation without affecting your profits.

3. Don't dilute your priorities. A plan that stresses three or four main priorities is a plan with focus and power. People can understand three or four main points. A plan that lists 20 priorities doesn't really have any.

4. Don't overvalue the business idea. What gives an idea business value is not the idea itself but a business that's already built on top of it. It takes employees having shown up every morning or actively representing and participate in company, phone calls being answered, products being built, ordered and shipped, services being rendered, and customers paying their bills to make an idea a business.

5. Don't confuse a plan with the act of planning. You need both to succeed. And your planning process doesn't end when your plan is done. The value of a plan is in the implementation it causes, and implementation starts the day you settle on the main points of your plan.

6. Don't fudge the details in the first 12 months. By details, I mean your financials, milestones, dates, responsibilities and deadlines. Cash flow is the most important, but you also need lots of details when it comes to assigning tasks to people, setting activity dates and specifying what's supposed to happen and who's supposed to make it happen.

7. Don't sweat the details for the later years. This is about planning, not accounting, and you're only guessing the future in a system full of uncertainties.

8. Don't write too much. Keep your business plan short and focused on your main priorities.

Five important tips before you start!

1. The business plan should tell a compelling story about your business, explaining who, what, when, where, how and why.

2. Your plan should be focused and clear. It is not about the number of pages or style of the cover.

3. The plan should define specific business objectives and goals with general parameters to guide the organization.

4. Writing a business plan should force logic and discipline into a business.

5. A good business plan is a living document. It should be updated regularly.

For more details on a basic, extensive or financial plan, please visit WWW.LRCONSULTINGENT.COM and contact one of our consultants TODAY!!!