Often, as entrepreneurs we think i got an excellent business idea, am excited, inspired and poised to take the plunge. The next step that comes in our minds: write a business plan. I strongly believe that sucess of every business lies in planning. Tariq Siddique, puts it this way: ' if you are failing to plan, you are planning to fail.' Ok. While i believe these sentiments, i realize that the importance of business planning has been widely documented; i also consider of great value understanding the pitfalls that entrepreneurs must avoid while writing a business plan.
1. Diluted view about a plan
Well, what is the point of having a business plan? There is a diluted view/mis-information on the need to prepare a business plan, most entrepreneurs think they need one to secure external funding.
It is important that entrepreneurs prepare their own business plan, if consultants are sought to help prepare a business plan, the entrepreneur must remain the driving force behind the plan.
Writing a plan gives you a chance to evalute your idea before you implement it. It provides you a chance to analyse the weakness of your idea, determine whether or not you can overcome them. If you think you can overcome them, you reward yourself with unshakeble conviction. Likewise, if you think you can not overcome the pitfalls, it saves you time, money and energy in the long run.
2. Lack of realistic goals.
Planning entails formulation of goals and directions for the future of a business. Settings goals/objectives is always the first step in planning. While setting goals to be attained, the entrepreneur should ensure that they are specific, measurable, attainable, realistic and set within time parameters. The goals can be short term, medium term or long term, with the most important ones been prioritized. If the goals are set within a given time frame; the entrepreneur can counter check his performance.
3. Failure to anticipate roadblocks
Every entrepreneur will encounter roadblocks as they climb the ladder of success. These roadblocks can be; high inflation rates, high cost of doing business, increased taxes e.t.c.
Oftenly, entrepreneurs while penning their plans overlook this reality when they are emersed in their business ideas. While writing a plan, an entrepreneur should remain objective to consider all scenarios that can impact on his business in the future. This can help in formulating alternatives that might be done to overcome various obstacles.
4. Lack of discipline.
The concept of discipline have been best described by Scott peek, ' discipline is the art of schedling the pains and pleasures in life in such a way as to confront pain first so as to enhance pleasure later.' Although a venture may have started from a hobby or a part-time endeavor, entrepreneurs must be careful to avoid the impression they do not take their venture seriously.
I call it lack of discipline because commitment and discipline compliment each other. Avoid procrastinating activities that are already scheduled
5. Lack of technical experience.
Entrepreneurs should venture in ideas they really have true knowledge of, to avoid being perceived ignorant of the specifics in the proposed business. Venturing in unfamiliar territory might be disastrous, especially where the customers expect quality services and technical support.
In the case where the entrepreneur lacks technical know-how, it is always advisable to get into a partnership with a professional who will compliment his lack of required skills.
6. Lack of clear market
Well, all business are establiahed with the main objective of making profits. For a business to maximize on profits it has to clearly understand its customers. A successful entrepreneur should have a viewpoint where customers/market are considered crucial and incorporated in a business plan.
A business plan should analyse and be able to segment the market in such a way that the business identify a niche for itself.
By john muchiri
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