Business plan mistakes - part 1

It can seem to be a daunting process when you begin, or think about beginning - here are the first list of common business plan mistakes - and how to avoid them

Cash is king

When planning your business you should always, always concentrate on your cash flow.

Businesses fail when they run out of cash (for whatever the reason).

Many profitable businesses fail because they run out of cash

So pay special attention to your cash flow forecast. Ensure you get people to pay their invoices on time and calculate how much of a loan you may need - before you need it

Over optimistic sales projections

Yes, sales always start slowly - but they don't then balloon upwards after a month or so.

Be very realistic in your sales projections. If you're starting a new business, remember that no one will have heard of you and it's going to take time to get established. It's unlikely you'll make the sales you desire unless your marketing and customer satisfaction is 100%

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