Limitations of Business Plan
Project report or business plan is a written statement of what an entrepreneur proposes to take up. It is one kind of course of action about what the entrepreneur hopes to achieve in his business and how is he going to achieve it.
The business plan is only a plan and does not assurance achievement. For example, sales may be lower than predicted as they can be affected by a range of issues. There are some limitations to the business plan. This is why those plans can’t be successful. These limitations or pitfalls are as follows:
- Lack of realistic goals: Some entrepreneurs set such goals that are not attainable;
- A problem in determining time-period; if the plan is too rigid some problems may arise, it must be flexible to adapt to market changed.
- Failure to anticipate a future problem;
- Lack of sufficient information;
- Lack of commitment: Starting is good but the spirit of an initiative declines;
- Lack of practical experience;
- Lack of alternative plan;
- Insufficient knowledge about the market;
- No consideration of SWOT: SWOT means strength, weakness, opportunities, and threats;
- Unnecessary delay in project report formulation and implementation;
- A problem in priority consideration;
- Lack of efficient manpower;
- Lack of flexibility;
- A wrong assessment of the market.
Understanding this and how to avoid or correct is key in determining the overall success of any plan.
