Why Some Business Plans Fail

The future of the business depends on the plans that are made. Most business plans fail, as their basic foundation is not correct and they try to publicize instead of focusing on the business.

There are some common varieties of plans that do not work out.

1. The plan with no identification of a customer problem to resolve, but has a detailed description of the technology / product / service.
2. The plan that is set with Stupid Assumptions based on the secondary data of the technology / product / service in the market.
3. Most of the businesses look at profits rather than the customer feedback. Good business professionals not only look for profits but also ask fundamental questions to the customers.
4. Important factors to do business are - when addressed effectively, are likely to bring success even if less-important challenges aren’t handled well. Location, for instance, is a critical success factor in much of retailing. A business plan that identifies its critical success factors and shows how the team’s expertise and experience are suited to addressing them is much more likely to succeed
5. The common mistake where the businessperson can find anything but good things to say about the opportunity and plans to pursue it.

Experienced entrepreneurs understand that there are potential pitfalls in their market or industry. The facts are that most opportunities are highly uncertain. Most of them will fail.