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While including the necessary items in a business plan is important, you also want to make sure you don't commit any of the following common business plan mistakes:

Putting it off. Too many businesses make business plans only when they have no choice in the matter. Unless the bank or the investors want a plan, there is no plan.

Cash flow casualness. Most people think in terms of profits instead of cash. Understanding cash flow is critical. If you have only one table in your business plan, make it the cash flow table.

Idea inflation. Don't overestimate the importance of the idea.Plans don't sell new business ideas to investors. People do. Investors invest in people, not ideas.

Fear and dread. Doing a business plan isn't as hard as you might think. You don't have to write a doctoral thesis or a novel.

Spongy, vague goals. Leave out the vague and the meaningless babble of business phrases (such as "being the best") because they are simply hype. Remember that the objective of a plan is its results, and for results, you need tracking and follow up.

One size fits all. Tailor your plan to its real business purpose. Business plans can be different things: they are often just sales documents to sell an idea for a new business.

Diluted priorities. nRemember, strategy is focus. A priority list with 3-4 items is focus. A priority list with 20 items is certainly not strategic, and rarely if ever effective.

Hockey-stick shaped growth projections. Sales grow slowly at first, but then shoot up boldly with huge growth rates, as soon as 'something' happens. Have projections that are conservative so you can defend them.

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Labels: business plan, goals, idea, mistakes, planning, sales

Stephen James considers that if you take action in each of these 10 areas, you will not only be 2 steps in front of your competition, but you may very well be within touching distance of living your dream.

1. Business Plan. A business plan is critical to achieving consistent growth in any business. The benefits of a business plan are realised immediately through the process of just thinking clearly about your business for an extended period of time, and through illuminating the areas of your business that need fixing.

2. Customer Database. At the end of the day, your customers are the most valuable asset you have in your business. You should be taking every opportunity to collect the names and contact details of your customers and communicating with them on a regular basis.

3. Systems. Systems are essential for ensuring that you provide a consistent level of service to your customers and so that you understand the financial performance of your business.

4. Staff Incentives. To attract great people, progressive companies are keenly aware that they need to foster personal responsibility and provide direct reward for measurable results.

5. Staff meetings. Meetings are an opportunity to inspire your people and thereby your business. They also give your people a sense of belonging through the process of sharing information.

6. Marketing. Marketing is the most important of all success strategies in your business, because if you can't find a buyer for your product or service, nothing else you do will matter!

7. Branding. Branding is about creating and communicating a set of values to the consumer of your product or service.

8. Business Image. First impressions count for a lot. Addressing your business image is all about paying attention to the little things that will exceed your customers expectations.

9. Guarantee. How does a customer truly believe they are going to receive value from doing business with you? They will only know this if you are prepared to take more risk in the transaction than they are…and this promise is delivered through your guarantee.

10. Customer care. Every business should have a follow up system that extends sincere thanks to every new customer and for their ongoing patronage.

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Labels: branding, business plan, clients, customers, marketing, staff, strategy