There are many elements that make a good business plan. It often takes time, patience and a lot of changes before you get it right. Unfortunately, when rushing to get your financing in place, and start your business, you can get neglected your plan. Here are a few of the have highlighted very often made mistakes when writing a business plan:
1. Unrealistic financial projections
Most Canadians are familiar with the company on CBC Dragons' Den, the gross overestimate the value of their business and be disciplined and fired from the dragon. Lenders and investors expect to show a realistic picture of where your business is now and where it may be hoped, therefore, if the plan is too optimistic, without explanation of the projections, it will alarm bells ringing and cause the plan to be rejected.
2. Do not specify the target group
No company will appeal to everyone. You need to define your specific target market, show how you have made these assumptions and outline how you will this market specifically.
Need help define your audience and learn about primary and secondary market research? Small Business BC offers seminars for market research (hyperlink) and one-on-one consultations with an in-house market research expert.
3. Over-Hype
You can believe that your business idea is the next big thing, but you must be able to claim on your back-up. About hyping not harden your business idea and your plan with superlatives like littering hottest and largest your product or service. Wow them with your business idea, research and financial plan not by saying you think they want to hear.
4. Bad Research
must be all research double checked and documented. By using incorrect or outdated information to discredit your business idea and the rest of the plan.
5. No focus on competition
Even if you think you have a "unique" business idea and are sure that no other company like yours, is present, check and check. There is no such thing as no competition. Even if your business is one of the kind, it depends on the dollar; if your company did not exist, but the need of the customer continues to exist, where they would spend their money?
Likewise, if you highlight your competitors too much of the investors fear that the business will not survive. Concentrate on your niche, what differentiates you from the competition, how do you plan to compete in the market and paint accurate picture of what the industry is like now, and where it will go in the future.
6. Hide your weaknesses
Do not hide your weaknesses, but it is not too much to highlight. Every company has to hide his weaknesses, but through it or highlight it too much you will deter investors. The only way these weaknesses is to fix, for a more detailed strategy on how to plan these problems.
7. Not your sales channels know
Have a safe plan of how you offer your services or to distribute your product. Including all possible channels in your plan without substantiate why these are the proper channels and how to reach your target audience the investor make sure that you have thought only of the list, off the top of the head. The ability to articulate your strategy how is your product or service reach your clients is crucial.
8. Including Too Much Information
If you would an investor you want to read a 0-page business plan? Most investors have a mental checklist 10-12 points, they are looking for in the plan, everything else is just in the way. The purpose of the plan is not to demonstrate the depth of knowledge, but to focus on the key elements of your business. Clear and concise writing is always welcome and if you have additional information that you want to include in the document to create an attachment.
9. Inconsistent
different target markets Highlighting, citing contradictory statistics or has a plan competing strategies, an investor will make a challenge if you know your company and its market well enough. The portions of the plans are often written on different days or on different people, and then pasted together in a document resulting in inconsistency. Take the time to review each section of your business plan.
10. A writer, a reader
Make sure that you ask several people to verify your plan before submitting it. It's easy for you to glaze over misspellings and grammatical errors, because you in- the information and know by heart. Another set of eyes will help your plan more look professional and make sure that it reads correctly.
Need help your business plan review?
Small Business BC Business Consultant You can verify business plan objective and feedback with resources, such as the plan through our Business Plan Review Advisory to improve service.
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