Our online course, Business Blueprint Mastery, looks at the number one reason most businesses fail within the first five years. At the same time, it describes how to avoid being a statistic. Instead, how to structure a profitable business.
According to the US Census Bureau, In 2021, approximately 5.4 million entrepreneurs filed new business applications.
From the historical data, approximately fifty percent of businesses will fail within the first five years.
The reason the majority of small business ventures fail is that they need a proven strategic plan that works. Poor planning and no business plan can be tragic, even if the business idea is feasible.
When you understand the information a strategic business plan is supposed to contain, it becomes easier to imagine a business succeeding with one.
An effective strategic business plan will describe what problem the company solves and the pain points you resolve for users. It will show research on your target market, competitors, marketing and strategic plan, and a financial summary. Without this information, you’re guessing who your customers might be, where they hang out, and what might motivate them to buy from you instead of someone else. Worse, you might be entering a market already in decline, oversaturated with entrenched competitors who are barely making a profit themselves.
If I had to add a second reason why businesses fail, it is cash flow projections. A company must have essential financial information, such as budgets, income statements, and cash flow projections. Without this, you’ll have to guess how long it might take to generate a profit, affecting all sorts of financial decisions.
Think of your business plan as a guide and road map to profitability. You may now understand how important it is to write down your goal. In the Business Blueprint Mastery video course, I will walk you through creating a clear plan while simultaneously enjoying the process.
Suppose you can skip the planning process. One of the most harmful myths about business plans is that you don’t need one. This myth is usually related to the idea that business plans are only a means to get investment. If your business doesn’t require investment, you don’t need to make a business plan. That cannot be further from the truth. As I mentioned earlier, poor planning is the reason most businesses fail.
Our online course teaches the power of excellent planning. Whether you are starting a business or have a current business, spending one hour writing down your plan will bring clarity and insight you may have yet to see if you did not do it. I will outline a one-page business plan as your initial plan in this course.
For the past two decades, I’ve used these methods to guide me in the right direction, communicate with my team, secure investments, and much more. It’s crucial for any business owner to at least write down their plan, review their plan monthly, and reshape their business plan each year.