Entrepreneurs are part of that minority in society that takes risks to chase their dreams, and what could be better than providing for yourself instead of having the boss providing for you. But, unfortunately, statistically speaking, 75% of all new businesses will fail within the first five years. Many things can go wrong when creating a business proposal, and entrepreneurs often repeatedly make some of the same mistakes.

It can be challenging to spot these common mistakes when creating your business plan, so understanding what they allow you to catch them in advance. In addition, it will help ensure your business is one of the successful ones that live past its fifth year. While this may not provide you with the magic bullet to success, it will give you a better chance than if you had gone into business blindly.

Not having proper funding is the number one reason businesses fail.

Even if your business proposal ideas sound great on paper, you need to back up your argument with actual money or some source of revenue that can pay for the company to operate. Many businesses require very little startup money, but you need to have some  seed capital  before your business can run.

When starting small, it’s possible to do this with personal savings and loans from friends and family, but once your company grows, these resources won’t be enough, and you will need to find outside funding.

You lack a solid specific market that you are targeting.

Businesses fail because they do not provide solutions to those who can use them and instead try to solve problems for everyone. Therefore, when selecting your target market, focus on those who will be the most affected by the product or service you provide. It can be a lower conversion rate, but it will make your efforts much more efficient.

You are not committed to success.

It’s straightforward for entrepreneurs to get caught up in the excitement of starting their own company, and they neglect to consider the purpose behind what they’re doing. Even if you have a great idea and complete writing a business proposal, it isn’t sensible without your commitment to success. It would be best if you were willing to put in the time and effort required, especially when things get complicated.

You are building a business based on trends.

As much as you may have wanted them to last forever, trends are not here to stay. Therefore, your business needs to be built upon solid foundations that can weather market trends and not rely on them for survival.

You do not understand your competitors and the current marketplace.

It is essential to know who you are competing with and what they offer to better differentiate yourself from them. Even if you see a company doing something similar to what you plan to do, it does not mean you will compete. However, if you’re offering something different, your  investment proposal  may work together with them instead of competing for the same audience.

Spending too much time on a product or service people don’t want.

You need to make sure that what you are providing will solve a problem or fill consumers’ needs. Otherwise, it will be challenging to make sales. Even if you think your product is fantastic, spending time on something that does not have demand can cost you in the long run.

You are asking enough from potential customers.

You need to know what your target audience is willing to give before setting a price point and building a business model. If you do not know this, then the first price point that comes to mind may be too high, decreasing sales and revenue. Therefore, you will need to test your market and determine what they are willing to pay for your product or service before creating a realistic financial plan.

You do not understand your business’s core competencies.

As a new entrepreneur, it can be easy to assume you have all the skills necessary for your business. However, even if you have experience in a particular area, it does not mean that this will directly correlate to what your business needs from you. You must know your strengths and weaknesses to find people to fill in the gaps for you. Venngage has hundreds of  business proposal samples  to choose from, so you won’t miss any gaps.

You are building a team of friends and family.

You may have great trust in your friends and family, but hiring a professional business manager or accountant is more important than hiring a friend. The last thing you want is not to take their job seriously because they are not getting paid for it.

You do not have a monetization plan in place.

As important as providing value is, your  business  needs to make money to stay afloat. It’s widespread for entrepreneurs to focus on building their business before putting in the extra effort required to create an efficient monetization plan. You need to make sure you have a plan in place for how you will make money even before your launch, so be sure to include this in your business plan.

Bottomline

So the next time you feel discouraged because no one seems to want what you have, remember that even if it’s not what you imagined right now, at least your business is working towards being something great in the future with a solid foundation.

If you want to look for business proposal examples and templates, you may visit  Venngage.  They offer several templates for your business needs. They also provide  case study  samples.