A business plan is very important to getting a venture off the ground, keeping it afloat and ultimately achieving success, so there should be no room for errors when making it. Otherwise, you will suffer from consequences that can affect your bottom line. To put you on the right track, here are crucial mistakes you should avoid when writing a business plan.
Opening Message Failing to Succinctly Describe the Idea
First impressions are important, and your plan is often judged by its executive summary. Given that investors and vendors are always busy, they might just make a quick read of the opening section. So, if it is not clear and persuasive, they will likely move on to the next proposal.
No Focus on Specific Products or Services
Taking a broad approach when describing what you offer (to appeal to a large audience) is not a smart strategy. Instead, show a product or service that is unique from those offered by your competitors.
Unclear Statements on How to Generate Revenue
Your business model—which shows how you understand generating revenue—is crucial for your own planning. This dictates the outcome when applying for bank loans or asking for approval from credit committees.
Sales Forecast Not Being Believable
A good product or service will not sell itself; a sales forecast that is backed by data and analysis is needed. Remember that unsupported and robust forecasts would just be discounted by readers, and you would not be in a good place to defend them.
Funding Amount Not Supported by Financial Statements
If you want to demonstrate that you have a highly profitable business proposal, back the amount of money you are asking with financial statements. And again, avoid making robust sales projections as this would mask the funding needed.
Remember that incorrect information in your business plan can lead you to making poor decisions, which can pull you down. So, make sure it is well thought out with messages that clearly state why your venture should be a success.