Upmetrics AI Assistant:
I hope everything’s good on your side of the world.
“65% of all new businesses fail during the first 10 years.”
I read this in an Investopedia article, and it got me thinking.
“Why do businesses fail?”
We’re not talking about casual ventures here—we’re talking about legitimate, registered businesses.
No way, all of them have started without a plan.
So, it’s not the business that failed, it’s the plan.
Our team reached out to entrepreneurs and experts with first hand business planning to get their thoughts on:
“Why do business plans fail?”
Now, I can’t possibly summarize a 2,500-word article, 15+ expert insights, and our team’s suggestions into one brief newsletter, but I’ll give it my best shot!
These are the types of business plans most likely to fail.
1. An over-optimistic, imaginary plan
Entrepreneurs who think their business will start printing cash within a few months might need a reality check.
If a plan looks too promising on paper, it’s worth taking a second look.
Over-optimism is a major red flag. 🚩
2. Plan that sits on the shelf
A plan isn’t meant to gather dust on a shelf—it’s meant to guide action.
A plan that’s never put into use is doomed to fail. Period.
3. Plan that doesn’t pivot quickly enough
A business plan is a tool, not a set of rigid rules.
While you shouldn’t expect it to be flawless, you shouldn’t stick with it no matter what.
If you don’t pivot when needed, it’s not the plan that fails—you do.
4. Plan that’s not flexible
A future-proof business plan has room for change.
It’s flexible and adaptable, ready to incorporate new strategies as they arise.
5. An incomplete plan
Whether short or long, every business plan should answer the fundamental questions about your business.
If it doesn’t, it’s incomplete. And we all know what that means.
6. Plan led by poor execution
A plan is just a tool, interpretation of your goals, strategies, and vision.
It’s the execution that drives you to your destination.
Even the best plans fall flat without solid execution.
7. Plan with no market research
There’s no such thing as “poor market research”.
Poor market research = no market research.
That’s a pretty good strategy to make a business plan fail.
That’s not it. There’s more. (Keep reading on Upmetrics)
Hope the reading was worth your time.
And a quick reminder: Upmetrics offers a comprehensive suite of AI-powered tools, resources, and services to help you write a plan.
Until the next time,
Happy business planning 🙂
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