The June 3 Wall Street Journal lists lack of a business plan as the number one mistake in starting a business.
In “Starting a Business? Don’t do This” columnist Andrea Coombs says:
“Here are six mistakes to avoid to better your chances.”
“1. Lacking a detailed plan. ‘People don’t begin to do enough research on the size of the market, how can it be priced, how can they get their products made, will there be demand,’ says Carl Schramm, president of the Ewing Marion Kauffman Foundation, which promotes programs to foster entrepreneurship.”
“A detailed business plan forces you to clarify how much money you’re willing to invest in the venture. It should spell out some time frames, objectives, costs and expenses,” says Todd McCracken, president of the National Small Business Association, a Washington, D.C.-based advocacy group with about 65,000 small-business members nationwide.
“‘Entrepreneurs are always very optimistic,’ he says. ‘But they don’t look closely enough at what they’re willing to lose.'”
While we’re a lot about planning on this blog, the rest of the list is also important. Read it.