Business plans requires additional financial resources which seems too expensive to most business people. However it's very important for the Businesses. Therefore due lack of funds most of them can't afford to have one.
Why do most entrepreneurs fail to make business plan?
- Thread starter Stardom22
- Start date
I think it's because most people don't consider it as something that is necessary to the success of their business. A lot of small business owners plan along as the business runs, solving problems that come up and just going with the flow.
I think not all entrepreneurs have the knowledge or skill to do a properly written business plan. However, most of them have some sort of ideas in mind when they start up the business. They know the product/service they are selling, target customers and market size, capital and manpower required. However, they may not think medium or long term. They just figure out things as one goes. This is of course not a good way of doing business.
It is clearly mental laziness. They don't want to stretch their minds to understand how to articulate and create a viable plan for their businesses.
True though the cost of business plans is pretty much and most entrepreneurs might not be able to afford it, especially does small business owners. While there are some who do not really know the importance of a business plan.
Many entrepreneurs fail to make a business plan, usually due to lack of capital, unsupported knowledge and skills, not conducting marketing research in advance, having too high expectations, giving up easily, and so on.
