What is the single biggest mistake people make with business plans?
Tim Berry: Many people don’t bother with the cash flow analysis, and don’t do the work on it. Then they run out of money. People tend to think profits and cash are the same thing. They haven’t laid out the numbers to see whether the cash will outlast them. A company could be doing fine if all sales are in cash, but what about if customers take 60 days to pay? B-to-B sales in particular can blindside a small business, because they are done on the basis of submitting invoices and there is a delay between the time the sale is made and payment received. Doing a thorough, well thought-out cash flow analysis is the most important thing that a startup or emerging growth business can do. Even established companies can find cash flow a challenge if circumstances change or if they are making heavy capital investments and other expenditures. Anita Campbell: What are the differences between business plans in different countries? With different accounting treatment, they must vary quite a bit from
