It’ll take three times as long and cost three times as much as you think

Almost nothing ever works out to plan, especially to your business plan – which as I’ve told you before is basically a work of fiction.

Most business plans go down in flames

If you’ve never actually set up a business before, then you are guaranteed to underestimate how long it will take and how much it will cost.

However, I am not sure that many companies would actually start if the owners realised what it would take to get there.

Also, if you spend three times as much money and effort on your original business plan you will only lose three times as much.

When you start trying to sell a product you very quickly realise whether or not it sells. There is nothing as brutal or impartial towards a new business as the market.

Sometimes it really is your explanation or marketing materials. More likely it is something that clients don’t see a need for, or the pricing doesn’t work. Whatever it is that causes problems in sales, if you identify it then you will quickly adapt.

By getting your failures in quickly (also known as the ‘fail fast’ method) then you will be able to refocus your time and precious remaining capital on what actually does sell.

When you get money coming in the door then you can spend any spare cash on growing.

So, stick with your original optimistic plan, but keep in the back of your mind that you need to test the market and any spare funds you have should go towards improving or changing the product or service to what the market actually wants.