Opening a new company is not that easy because of the myriad challenges, threats, flaws and problems that businessmen experienced during their operation. Why do some companies fail during the initial stage of their operation?

Some business enterprises fail due to lack of planning, while other business failures are attributed to incompetence of employees. Meanwhile, some firms failed due to the effects of economic crisis. Nevertheless, have you ever correlated business failure to your business plan? Did you know that your business plan can make or break your company? Yes, it can. This is why businessmen should be very careful in developing one before they plunged into unknown waters. Entrepreneurs should not solely based their business plan on the samples seen online or that of existing companies, but it should be evaluated, studied, surveyed and assessed carefully to become effective. Remember that competitors abound in the market, thus every company should enhance their products and services to get an edge over rival firms.

If you noticed that your marketing and strategic plans are not producing quality results as expected and your products are not attracting the project sales, then for sure something is wrong with your business plan. If you want to improve your performance to achieve your short- and long-term objectives, then act immediately and do the needed revision and amendments to your business plan. Bear in mind that it is never too late to change things for the better.

Below are common mistakes committed by entrepreneurs and ways to rectify them:

1. Competition – Competition is always present in the industry and every company has its competitors. However, some businessmen failed to consider that aside from direct competition, they also have indirect competitors. To have an edge over competitors, business enterprises should think about ways to meet the needs of customers and how they can improve the products and services they provide their clients. Be sure to identify why your products and services are different from competitors. What make it unique from your rival firms? Why should your customers buy them instead from your competitors?

2. Target market – Some companies fail to clearly identify their target market before they launch their offerings. Bear in mind that not all products and services are needed by the different age bracket of customers. You should conduct a feasibility study to assess the specific needs of your target market before you formulate and develop products. Be sure to segment your target market into primary and secondary target. Avoid concluding that your product is applicable to everyone.

3. Business viability – Avoid making false assumptions. Do your share of research, feasibility studies and surveys to assess the viability of the products and services you are considering. Avoid releasing it immediately to the public, but make the needed experiments and testing to evaluate the profitability and demand of these items.

4. Marketing plan – When making your marketing plan, avoid basing your proposals on mere statistics alone, but you should base your marketing strategies on facts. Do not jump into the water immediately without assessing how deep it is.

With the tips and suggestions mentioned above, you can correct and rectify the flaws in your business plan.

Mabel Miles likes to share information on bakery business plan template and bar business plan as well as related business matters.

Mabel Miles likes to share information on bakery business plan template and bar business plan as well as related business matters.
http://www.growthink.com/businessplan/help-center/bakery-business-plan
http://www.growthink.com/businessplan/help-center/bar-business-plan

Author Bio: Mabel Miles likes to share information on bakery business plan template and bar business plan as well as related business matters.

Category: Business Management
Keywords: business plan,target market,business plans,business enterprises,marketing plan