A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. Business plans may be internally or externally focused. Depending on the target or goal of writing a business plan, it is always important to convey the ideas that will make the business succeed or attract the necessary funding needed if you are targeting an investor. These mistakes are common and can be avoided.
- A common mistake is underestimation of the financing required.
- Not planning for management succession.
- No clear answer to “What problem are you solving?”
- Using template/business plan software to write your business plan without the neccessry changes to reflect your exact need.
- Minimal or No risk analysis
- Overly optimistic financial numbers.
- Writing the plan for yourself and not for the business.
- Minimal market and competitive analysis to identify what you are up against
- Not enough detail on how the capital will be used.
- Too aggressive at estimating market share and growth and no mention of how to defend and sustain revenue streams
- No executive summary
- Overestimating revenue growth
- No clear specific, realistic and attainable goals and objectives.
- Not providing due emphasis to SWOT analysis
- Misunderstanding of the market place and the value proposition for the product
- Overestimating the value and desirability of your product or service
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