Common Mistakes Made When Writing a Business Plan

You have gone through the many elements that makes a good business plan. You have spent time, took the patient to make revisions over and over again. Unfortunately, when you submitted your business plan hoping to get your funding in place and launch your business, your plan can got neglected. You most likely have a made some tiny mistakes.

Some of which I am going to highlist for you

1. Unrealistic Financial Projections
Most businesses grossly overestimate the value of their company and are chastised and punished.
Lenders and investors expect to be shown a realistic picture of where your business is now and where it hopes to be, therefore if your business plan is overly optimistic with no explanation of the projections, it will ring warning bells and cause the plan to be rejected.

2. No Focus on your Competition
Even if you think you have a unique business idea and are sure that no other business like yours exists, check and double check. There is no such thing as no competition. Even if your business is one of its kind, it comes down to the money. You should ask yourself where your customers where spending their mney on before to cater for a need your business wants to provide.
Equally if you highlight your competition too much, the investor will worry that the business will not survive. Focus on your niche, what differentiates you from the competition, how you plan to compete in the marketplace and paint accurate picture of what the industry is like now and where you see it going in the future.

3. Hiding your Weaknesses
Do not hide your weaknesses but do not highlight them too much either. Every business has its weaknesses but by hiding them or highlighting them too much you will put off the investor. The only way to address these weaknesses is to include a detailed strategy of how you plan address these problems.

4. Including too much Information
If you were an investor, would you want to read a 200 page business plan? The purpose of your plan is not to demonstrate the depth of your knowledge but to focus on the key elements of your business. Most investors have a mental checklist of 10 to 12 points that they are looking for in the plan, everything else just gets in the way. Clear and concise writing is always appreciated and if you have additional information which you would like to include in the document, create an appendix.

5. Being Inconsistent
Highlighting different target markets, quoting conflicting statistics or having competing strategies within a plan will make an investor challenge whether you know your business and its market well enough. Sections of plans are often written on different days or by different people and then pasted together into one document, which may result in inconsistency. Take time to review each section of your business plan.

6. One Writer, One Reader
Make sure you ask several people to review your plan before submitting it. It is easy for you to glaze over spelling mistakes and grammatical errors because you know the information inside and out. Another set of eyes will help your plan to look more professional and ensure that it reads correctly.

Do not loose your investors. Your idea could be great or probably be the best amongst others. Avoid simple mistakes, make sure you get a friend or a professional to review your plans before submitting it.

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