Your startup needs to succeed. If you are building your own business then you do not want it to fail. Many businesses fall down before they have ever really gotten off the starting block. They leap forward full of exuberance, only to fall headfirst immediately never to get up again. Very often the reason that this happens is poor planning.
Not doing their research into the market can mean that a business owner underestimates the competition, or sees potential where there isn’t any. An inability to create a marketing strategy will mean that a company fails due to its virtual anonymity. But where so many businesses fundamentally get it wrong is when it comes down to doing their sums.
Creating An Accurate Budget
When you are drawing up your business plans you need to have a really well-considered budget. You should be able to account for everything that will be needed when you come to start up your business. From domain registration fees to get your website sorted, through to spray foam roofing for your premises fit-out you need to include everything.
There are many things that can go wrong in the process of setting up a business. Things can get delayed such as paperwork getting signed by solicitors. A problem may occur when you are getting your premises set up which causes you to need to bring in a specialist contractor. There could be political or economic problems that have a sudden knock-on effect and mean more expense.
It is impossible to factor every inconceivable issue that you may face while you bring your new business to life if you could then your budget would be infinite. However, it would be a very good idea if you allowed a reasonable cut of your budget to be set aside as a contingency.
Pitching To Investors
When it comes to dealing with investors, you can’t pull the wool over their eyes. You will be pitching to some of the sharpest people around. They will know a well put together proposal from a half-baked one. Your business plan needs to show that you are diligent, that you can research, and that you are able to handle unforeseen changes with the calmness that you need to steer your ship in new directions.
While it is true that these investors will be looking at your project and it’s ability to provide them with some great returns. However, they will be judging you and your skills in planning as well as checking out your attention to detail.
Sure, they could spot the flaws in your plan and let you know. You could amend them there are then and you could go on your way with pockets full of their cash. However, they want someone that can spot these problems for themselves. They need someone who is proactive in planning rather than reactive. They ultimately need to know that the business that they are investing in is going to be in the safest possible hands.