Business Planning

As you develop your business plan, it's easy to make mistakes or leave out important elements. Here are a few of the most common business planning pitfalls and some tips on how to avoid them.

1. Create a vision. It's tempting to roll up your sleeves and plunge right into the details of your business: evaluating products, studying market segments and sizing up your competition. Yet it's possible to get so caught up in the process of planning a business that you lose sight of what you're planning for.
   
   Before you get lost in the details, take a step back. Outline a clear vision and a coherent set of values for your company. Develop a mission statement and use it to define short-term goals and priorities. Once you have a clear road map for your business, you can plan your journey with more confidence.
   
   
2. A budget isn't the same thing as a plan. You can't create a solid business plan without a budget and a financial forecast. But a budget should be the product of all the other elements in your plan. If you don't have a clear picture of your industry, customers, competitors and market conditions before you develop a budget, your numbers aren't likely to reflect reality.
   
   
3. Don't ignore your customers. This may sound obvious, but too many entrepreneurs assume they know exactly what their customers need without bothering to ask. Take the time to learn about your customers, and build your business plan around their needs and desires.