In 2019, nearly 65 percent of surveyed Americans wanted to own and operate a small business. If you’re in that number and taking the next step towards creating a business plan, it’s safe to say that you’re in good company.

However, even with your entrepreneurial ambitions and your hopes for your new company, there’s an elephant in the room that aspiring business owners can’t overlook:

Just 25 percent of businesses can expect to survive past the 15-year mark.

And in a world where the business cycle is moving faster than ever, it’s not enough to have secret ambitions — you need to have a solid business strategy. What pitfalls should you look out for? Here’s a list of four factors to consider as you develop a plan for your business.

1. Your Business Model

Your company could create the best widgets that the world has ever seen. But if you’re paying $50,000 to produce a $50 product, you’ll have an extremely difficult time being profitable.

The high-level strategizing applies to all the other aspects of your business as well.

Are you offering a product or service that people want to buy? Who are your suppliers? Is your preferred service area capable of keeping you and your employees well-fed and busy?

Companies profit and fail on the viability of their business models. So you’ll want to take your time during the planning stage of your process.

2. Your Marketing Plan

Whether you’re a seasoned entrepreneur or this is your first attempt at trying to start a new business, there’s one thing that every company has in common:

You need a strategy that allows you to predictably generate leads. 

The exact details of your marketing budget and planning will depend on multiple factors. According to the Small Business Administration, for instance, B2C companies typically put a higher percentage of revenue into marketing compared to their B2B counterparts. But either way, you’ll want to have a robust advertising plan so that PPC and lead generation costs don’t have a chance to take you by surprise.

3. Your Startup Costs and Requirements

Have you ever wondered why startups and Shark Tank participants are always asking for more rounds of funding? It’s because startup and operational costs can be extremely expensive when you’re trying to start a business.

For starters, there are licenses, permits, and initial inventory or equipment costs. And then, even after those costs have been calculated, your insurance needs will also need to be considered. Equipment breakdown coverage is just one of the options at your disposal if you need to consider this more.

But it all speaks to a larger lesson for entrepreneurs:

Risk management and ongoing necessities will also need to be factored into your budget.

Plan For Your New Company the Easy Way

When you’re looking to start a company, the initial process can quickly start to feel overwhelming.

You need to lease an office. You have to secure licensing and set aside funding. And, even when you’ve done everything you can, you still need to do the work of finding and attracting customers.

The good news, however, is that starting a new company doesn’t have to be complicated. All you have to do is sit down and come up with a proven business model and a strong strategic plan that will give you all the confidence you need to become your own boss.