Make this Common Business Plan Mistake Risk Failure
Posted by: Cheryl Clausen in business coaching, tags: business coaching, business plan, small business marketing and salesAccording to the Small Business Administration many businesses start without a business plan. I’m not convinced that information is entirely accurate. I believe most business owners start their business with a clear vision for how their business will operate even if they don’t have that vision recorded in a formal written business plan.
As long as you don’t need funding you won’t be required to have a written business plan either. So is a written business plan all you need to ensure your business succeeds when others fail? Well, it isn’t quite that simple.
The Small Business Administration also states 2/3 of new businesses will survive at least 2 years and 44% of new businesses will survive at least 4 years.
Stated another way, 33% of new businesses fail within 2 years and 56% fail within 4 years. Like all statistics those statistics only matter when you happen to be one of the business owners who find yourself in the failing group.
When you need funding you are required to present a written business plan to the institution or individual providing the funding in nearly all cases. The problem is the people reviewing your business plan are primarily interested in your financial projections even though those projections are nothing more than hopeful thinking. Plus the loan officer reviewing your business plan is no more qualified to review the most important elements of your business plan… your marketing and sales plans, than you are.
Did you know a lot of small business owners live off their savings for the first 3 years of operation? Many have to tap into those savings to provide operating cash for their business when their initial funding runs out too.
A big reason many new business owners and existing business owners get into financial trouble and risk failure is because they don’t have an effective sales and marketing plan for their business. When you don’t have an effective marketing and sales plan to begin with it’s nearly impossible for you to make the mandatory course corrections you will need to make to thrive in an ever changing business environment. Many of the situations that cause the greatest threat in your business are outside your scope of control yet you have to effectively deal with those threats if you are going to survive.
The 2 Most Important Elements of Your Marketing & Sales Plans
Whether you are thinking about starting a business, preparing your business plan for funding, or looking to increase existing sales you must make sure your plan:
- Positions your business to sell the right things, meaning the things your ideal clients are already looking to buy
- Builds on a marketing message that triggers the motivation within your ideal clients to take an action
Your marketing and sales plans should not be complicated. Instead focus on keeping your plans simple. Start simple, track everything, expand on what works and eliminate what doesn’t. Finally, never expect the plans you have today to work forever. Keep your ear to the ground, watch your numbers, and anticipate changes in the business climate.
Coach Cheryl
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December 20th, 2009 at 11:59 pm
Fantastic work. You have gained a new fan. I hope you keep up the good work and I look forward to more of your excellent posts.