As your business plan is the first relevant interface between you and investors, you should really do your best in making it look professional. There are a few general mistakes you should do your best in avoiding because they can ruin every chance you have in obtaining funding. Moreover, it the mistakes are in the organizational part of your business plan, they can also lead to the death of your business.
Click here to download your professional business plan template <==== Here is a list of common mistakes made when writing a business plan which you should avoid:
- Take your time to spell-check. Even if the business idea is astonishing, presentation is a major factor in obtaining funding. If you don’t show respect about the way in which your idea is presented, why would investors do?
- Place yourself in the optimum length of a business plan. If you write too much, your readers may get bored, if you don’t write enough, they may feel that your business plan is incomplete.
- Organize the information. A business plan must be structured into fields of interest and a complex connection should be established between these areas that can bring unity and completeness to your business presentation.
- Avoid using incomplete or unreasonable financial information. You should investigate the market before starting to write your business plan and have precise figures about the present situation and the way in which the market tends to evolve. Make sure that the analysis of the financial situation refers not only to the present moment, but also to the past achievements and to the way in which you plan to maintain the growing line in the future. Make sure not to take cash as profit in your calculations.
- Don’t over evaluate the business idea or the market possibilities. Establish clear and achievable objectives for your business. Aiming too high will make your business seem unrealistic and this will make investors not want to fund your company.
- Make sure to bring evidence about the demands of the market that you have planned to meet. Not bringing actual figures and satisfactory evidence in this field will turn down investors’ interest.
- Do state the channels you plan to use in order to make your product visible on the market. Not giving a detailed list of the resources you want to use in order to promote your business will make your business idea inefficient.
- Don’t confuse your business plan with the activity of planning. Writing your business plan is a short-term action that will soon be over, but planning your business’s strategies and objectives is a full-time job. As the market is in a continuous change, your plan should follow it. But that doesn’t mean that you have to rewrite your business plan every month. Once a year is good enough.
- Don’t sweeten up the details regarding the future activity of your business. You should know that no future perspective can be reached unless planned efficiently from the present moment. Even if experience will help you write a better business plan over the years, you should not project all realizations in an uncertain future. Establish realistic objectives and goals and analyze the elements that can help you reach the wanted level of development in a step-by-step strategy.