Even Google was turned down by numerous banks, angel investors and venture capital firms in its early years. If one investor declines to invest in you, ask why and if they can refer you to someone else. Rather, expect them, and realize that all you need is one “yes.” The right business plan is often the difference between a great idea merely sitting in your head and that same idea being turned into a multi-million dollar company.
Below are the four core reasons most plans fail, and how you can avoid this fate.
The most important part of your business plan is to identify your “unique success factors.” That is, what are the reasons your company is uniquely qualified to succeed?
So, be sure to identify them, and document them clearly in your business plan.
Conversely, if you have no unique success factors, you have no competitive advantage and thus can’t succeed long-term.
Most small business owners are very busy and find it difficult to justify spending the time to write a business plan. A business plan gives you as small business owner the best possible chance to succeed in business.
Reasons For A Business Plan
In other words, a business plan reduces the probability that your small business will fail, like so many others do.
Most entrepreneurs and business owners write business plans for the purpose of raising funding.
Unfortunately, the vast majority of these plans fail; they don’t result in any funding at all.
And while using the lingo is one thing, actually doing the planning and strategizing is another.
Many startups today suffer because their plan isn’t clear or thorough enough to guide the business.