Startup Businesses - January 09, 2012

Before starting a business or franchise, it's important to have a viable business plan in place to guide you along the way. Even entrepreneurs who have proper training and a degree under their belts know that a detailed plan is the key to finding long-term success. However, there are many common mistakes novices make when developing a business plan for the first time. Familiarizing yourself with these hiccups can help you avoid them, or recover quickly from them, if you happen to get stuck along the way.

Entrepreneur magazine reports that one of the most popular frequent mistakes that business owners make is trying to hammer out an entire plan in one sitting. Even after a successful brainstorming session, you'll likely find it difficult to compose an entire business plan at once - or at least a helpful guide that can truly help you along the way. Instead, draft your document in increments and jot down ideas as they come to you.

Most entrepreneurs know that their plans should also incorporate objectives and priorities. However, more isn't better in this case - think quality over quantity when it comes to making definitive priorities for your business. This means focusing on a handful of goals, rather than dozens of them, to give yourself a realistic chance of finding success.

When creating your business plan, it's also important to remember everything might not go according to what you have down on paper. Often, entrepreneurs stress over the details later down the line when in actuality, they should be viewing their plan as a road map - not as an end-all, be-all solution to succeeding in the industry.

In order to create a viable business plan, the U.S. Small Business Administration (SBA) states that there are a few key components that should be addressed in detail. First, your business mission or statement should be be at the forefront of your plan. This gives readers a clear idea of what your company is about.

While you may want to keep information on any business loans or alternative small business financing you have used for your own records, you should include your banking relationships in your plan. These details can help you when it comes to working with investors.

Finally, take your time when crafting your plan. The SBA notes that the average business plan can be anywhere from 38 to 100 pages, but it doesn't have to be created overnight.