For at least once in our lives, we dream of leaving our 10- 5 job and shifting to a self dependent source of income, i.e. having a privately own business with no bosses or insecurities and thus lead a beautiful, cosy and rush-free life.
Wait! Is that all you wish to know about the business? Do you certainly think that it’s totally up to you about choices regarding market, sales, target and planning? Do you think you would plan it daily and execute the same day to earn and grow?
Below are 10 common mistakes that must be strictly avoided during business planning and set up-
1.Unclear and rough business plans
Business needs planning’s and big and successful plans need investment. A business plan is really necessary to promote your business, and the preferred one is the in a decent written form along with good grammar. it must clearly mentions all the future business ideas as well.
Although it’s your own company or shop, but the investors must be impressed by the business idea and presentation. Either of unclear planning, lame ideas or bad representation of your points can take away the contract from you.
3.Detailed technicality in reports
The fundamental prerequisites of any business plan are the reports; too much technical descriptions confuse the investors and compel them to take much more time in their decisions. The reports must be kept simple and have only the details that are just sufficient for the investors.
Planning 80% of your future steps or planning nothing at all is considered almost same if you have started the execution of initial steps but still have no idea of plans to move forward. At some point in time you will find no way out and hence, force yourself into a dangerous situation.
5.Assuming that no risks are involved in your business
This is a proven and worldwide known fact that no business is 100% risk-free. And if you make yourself believe that yours is a 100% secure business plan. Then, you are making a fool of yourself and would end up losing a large amount.
6.Claiming no competitors
Maybe you do not have a competitor in your locality when you start your business. But, this does not assure you a no competitors game or a clear win. Subsequently, you might have competitors growing up from your own area or a dealer might start dealing into your area as well. So, you must maintain good relations with customers so that they do not change the shop they already buy from.
7.Having no target audience
If you are setting up a business, the most important thing is whom would you target? Who you have to attract? And to whom would you be selling your products too. This must be purely based on research. The advertising, marketing and branding would be done for the same set of audience.
8.Unreal financial projection
Investors too own a hard earned money and want to invest somewhere their capital grows. They actually know the market conditions and have a fair idea of the profit they would be making from you. So, don’t run into unreal impressions hyping your business and assuming a very high business growth in the very first year.
9.No financial protections
Like crisis, opportunities too never come after prior information about their arrival. So, we may require urgent capital at some point in time for some cheap goods, good business opportunities or better setup plans. Always keep some amount for such opportunities or even crisis related to loss or damage of products. This would really help.
10.Not keeping written records-
Although this is a mistake hardly someone do nowadays, But, this remains an important phenomenon for businessmen. If during planning days, a great idea clicked your mind, but you denied penning it down at preferred memorising the same, you will never be able to recollect the same idea that clicked and you might face a huge loss.