With a new year comes new year resolutions. Right now, you’re likely reflecting on what your goals are for the new year. If you’re reading this, your new year’s resolution probably involves creating or improving your business.
A recent study shows every 2 in 5 Americans plan to start a business in 2023. 50% of those businesses die within five years. What causes those businesses to die? More than 30% of small businesses only survive the first three years of operations if they have a business plan; 71% of fast-growing companies have plans.
Now that you know what you’re up against, it’s time to make a business plan. Valuetainment CEO and serial entrepreneur lists 15 mistakes people make when creating a business plan:
- Not taking time to plan. – Creating a plan takes a lot of time. You need to find a quiet area for a day or a couple of days with no distractions and write out your plan
- Not having Data- When you take the time to create your plan, you should have documents that track your spending, credit, startup costs, etc., in front of you.
- Overestimating what you can do– Bill Gates says, ” Many people overestimate what they can do in one year and underestimate what they can do in 10 years.” When you’re not realistic about what you can do, you eventually stop taking business plans seriously.
- Not knowing what to measure – Measure what matters. What is the most critical data point to measure?
- Not doing your research – Research what you need to be careful with
- Not learning new skills– Reflect on what you could improve at and learn or improve on those skills.
- Not having enough cash– Emphasize increasing your money.
- Not preparing for the worst-case scenario– You must be ready by studying worst-case scenarios and how to react to them.
- Not knowing how to incentivize– You should have an earn-then-reward system.
- Not cutting the fat- You have to eliminate negative toxic people from your life.
- Asking small thinkers for feedback-Only, seek advice about your business plan from someone that can critique you and hold you accountable
- Focusing too much on competitors- Focus more on what you need to do to improve
- Letting your competition intimidate you-
- Not Planning With the Calendar- When making your business plan, it should align with the calendar showing events, travel plans, etc.
- Not knowing who your next recruits are- Low level, mid-level, friends, partner, whatever it is, choose wisely.
- Not giving every year a theme- What’s your theme for 2023? Is it the “Year of redemption” or Year of Improvement”?
There’s a lot that goes into making a business plan. If you’re feeling overwhelmed ahead of the new year and need more help, join the Virtual Business Planning Work Shop hosted by Patrick Bet-David on December 16th to take your business to the next level. Click here to register.
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