As an entrepreneur, you may be more eager to do what you want than to write a plan about it. But if you want to succeed, it's essential to create a business plan that outlines your goals and strategies. To help you get started, here are seven common mistakes to avoid when crafting a business plan.
Don't make it too long.
If you were an investor, would you like to read a 200-page business plan? Most investors have a mental list of 10 to 12 points they're looking for in the plan, and anything else is just extra. The purpose of your plan is not to demonstrate the depth of your knowledge, but to focus on the key elements of your business. Clear, concise wording is always welcome, and if you have additional information that you would like to include in the document, create an appendix.
Don't make it too short. It should look like the tip of several icebergs that you'll have to navigate as your business grows.
In fact, one year after starting the business (assuming you go that far), your business plan will take on a reality that will alter many aspects of your planning. Add a “what if” button to your computer. You'll find that flexibility and flexibility planning become the lifeblood of a young company.
Don't forget to include key elements. At a minimum, your plan should cover all of these areas, including common company weaknesses.
When they study your plan, investors look for clues about the underlying company and its leaders. The worst business plans hide these risks throughout the plan, so no one can know where the assumptions end and where the internal and external factors begin.
Don't forget to be flexible. Develop the plan that best fits your business objectives and don't let the planning process get the best of you. You don't need a great idea to start a business, you need time, money, perseverance and common sense.
Don't forget to research.
It's all too common a mistake for an entrepreneur to claim that there is no competition or that the competition is inadequate without documenting the real threats facing their business.Don't forget to be realistic. The business plan must include clear objectives that derive from a strategic plan with action measures to achieve the objectives. Likewise, if you stand out too much from your competition, the investor will worry that the company will not survive.Don't forget to combine elements. Your products, services, business model, company weaknesses, customers, marketing and sales plan, internal operations, management team, common small business mistakes, and financial projections must be perfectly combined. Creating a successful business plan requires time and effort.
But if done correctly it can be an invaluable tool for helping you reach your goals. To ensure success in your venture, avoid these seven common mistakes when writing your business plan and give your business idea the presentation it deserves.