When a new entrepreneur sets off on the path of creating and growing his or her business, the potential is endless. However, success usually comes with a road map, and for first-time owners, there are a lot of things that can go wrong with their initial business plan.
Without someone to guide them on what’s important, new owners sometimes overlook crucial details that should form part of their planning. Twelve members of Forbes Coaches Council explore the most common areas of a business plan that new owners leave out, and why including them is of utmost importance to a business’s long-term viability.
1. Short- And Long-Term Goals
Setting short- and long-term goals and defining them in a business plan is essential to measuring traction and sustaining positive momentum. By establishing short-term financial gains, market reach, brand expansion and course of actions with maximum ROI, first-time founders will be better able to focus their efforts, avoid burnout and recalibrate their business plans. – Rosa Vargas, Authentic Resume Branding & Career Coaching
2. The Invisible Budget
Everything costs money, even the biggest intangible: time. And, given that money is the central metric for measuring the success of a business, it’s amazing how often a written budget is overlooked. Financial spreadsheets should guide where and how much money will be spent, as well as new money projections. Sound financial management should not be a “Where’s Waldo?” – Garrison Leykam, Garrison Leykam LLC dba DESIGN YOU
3. Talent Recruitment
First-time founders often make the mistake of taking on too many tasks that can be easily delegated. Their time will be best served by focusing on hiring the right people for the right roles and recruiting the “core team members” that will drive the business forward for years to come. The most successful founders quickly realize they need to surround themselves with brilliant talent first. – Debbie Ince, Executive Talent Finders, Inc
4. Their Core Values And Purpose
First-time founders often forget to define their core values and the purpose of the company. You cannot create a proper business strategy without knowing what the company stands for, what it seeks to provide and why it exists. It’s why many young businesses flounder because they end up just throwing things against the wall to see what sticks. Without a clear vision, how can you expect success? – Andy Bailey, Petra Coach
5. Potential Threats
First-time founders always look at the positive side of developing their business and often forget potential threats. Threats often overlooked include the founder getting sick or hospitalized. It is important to look at all aspects of a potential threat, and develop a duplicable system so that if anything happens within your business, someone is able to take over and keep the business going. – Stephannie Addo, Dr. Stephannie Addo Enterprises
6. A Clear Game Plan
Short- and long-term goals are often too vague and do not provide measurable and specific deliverables. When goals are specific, measurable and provide a clear understanding of how the company is going to achieve them, a founder’s vision and the company’s mission are brought to life, leaders are more effective and influential, and employees are better able to remain motivated and engaged. – Lori Harris, Harris Whitesell Consulting
7. The Target Customer
The No. 1 thing first-time founders forget in their plan is their target customer! Who are you going to serve? And how are you going to be dramatically and meaningfully different in their eyes? Answer these questions, with a narrow focus on who your target customer is, and strive to provide outstanding value to them, and you will create those raving fans that people tell you you need to cultivate. – Sturdy McKee, SturdyMcKee.com
8. Market Research
Often, because we provide a service to meet a need we forget to include market research. There may be similar companies already providing a similar service. We tag onto their success, believing that we are going to do it better, faster, bigger. The bottom line is that we really need to facilitate our own market research for our specific service or product. That way we have a realistic foundation. – Frances McIntosh, Intentional Coaching LLC
9. Staff To Fill Their Weak Areas
A common mistake is a lack of understanding of your strengths and weaknesses. An example is the business owner who is talented, smart and skilled in their chosen niche who didn’t account for their lack of understanding around tax laws. In this case, the business owner had to find a CPA to fill in gap. They spend time and money trying to take care of taxes and daily accounting. Staff your weaknesses! – Dr. Teresa Ray, PCC, Dr. Teresa Ray
10. An Open, Respectful Culture
Complex challenges require the integration of multiple perspectives. No one human, no matter how brilliant, has the capacity to meet the challenges of a new business. Create an atmosphere of safety and trust, and invite multiple differing perspectives from employees, business associates, friends, family, etc. You’ll be glad you did. – Dr. Joel M. Rothaizer, MCC, Clear Impact Consulting Group
11. An Initial Salary
By failing to build an initial salary into your new business plan, you miss a key ingredient in ensuring the success of the business. By paying yourself first, you take the pressure off the business to initially provide for your day-to-day obligations. Without pressure to make a sale right from the get-go, you can then truly focus on making a difference in the business versus just making a living. – Susan Scotts, SScotts.EsourceCoach.com
12. Accelerator Programs Or Entrepreneurship Contests
Researching and joining the right accelerator program or entrepreneurship contest for your business is potentially a game changer by providing a strong support network that includes experienced founders, mentors, potential access to low or no-strings capital funding, education, product development support and working spaces. Startups finding support like this is becoming a global trend—put it on your list! – Bree Luther, Inspired Science Coaching
As Seen On Forbes Coaches Council –
Debbie Kassebaum-Ince
Founder & President of Executive Talent Finders
