Why most businesses fail

Section 3 : Ineffective business planning

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Many entrepreneurs, especially self-funded ones, make the mistake of not creating a proper business plan. This is often because they initially have no one to report to, view their business as a small venture that "probably" doesn’t need one, or assume the business is very straightforward and simple. However, a solid business plan is the backbone of any successful business. Businesses without a clear plan often struggle with direction and decision-making. An effective business plan outlines your goals, strategies, market analysis, financial projections and operational plans.

Take, for instance, a food delivery service that launches without a clear strategy for scaling operations or managing logistics. As demand grows, they will struggle with late deliveries and unsatisfied customers. A robust business plan, including scalability strategies and contingency plans, can provide a roadmap for sustainable growth and adaptability to changing circumstances.

 

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