I hope everything’s good on your side of the world.
โ65% of all new businesses fail during the first 10 years.โ
I read this in an Investopedia article, and it got me thinking.
โWhy do businesses fail?โ
Weโre not talking about casual ventures hereโweโre talking about legitimate, registered businesses.
No way, all of them have started without a plan.
So, itโs not the business that failed, itโs the plan.
Our team reached out to entrepreneurs and experts with first hand business planning to get their thoughts on:
โWhy do business plans fail?โ
Now, I canโt possibly summarize a 2,500-word article, 15+ expert insights, and our team’s suggestions into one brief newsletter, but Iโll give it my best shot!ย
These are the types of business plans most likely to fail.ย
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, itโs worth taking a second look.
Over-optimism is a major red flag. ๐ฉ
2. Plan that sits on the shelf
A plan isnโt meant to gather dust on a shelfโitโs meant to guide action.
A plan thatโs never put into use is doomed to fail. Period.
3. Plan that doesnโt pivot quickly enough
A business plan is a tool, not a set of rigid rules.
While you shouldnโt expect it to be flawless, you shouldnโt stick with it no matter what.
If you donโt pivot when needed, itโs not the plan that failsโyou do.
4. Plan thatโs not flexible
A future-proof business plan has room for change.
Itโs 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 doesnโt, itโs 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.
Itโs the execution that drives you to your destination.
Even the best plans fall flat without solid execution.
7. Plan with no market research
Thereโs no such thing as โpoor market researchโ.
Poor market research = no market research.
Thatโs a pretty good strategy to make a business plan fail.
Thatโs not it. Thereโs 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 ๐
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