The Key Problems With Most Business Plans

Here are some of the common mistakes business owners make when completing their business plans :

• Mistake 1: Incomplete financials

  This is perhaps the most important section of any business plan. Lenders want to know when they will have their loans repaid and assess the risk. You need to produce financial statements that accountants will endorse without question.
  
  
  

• Mistake 2: Over ambitious projections

  Everyone thinks their business will grow exponentially in the first 12 months but in reality this is rarely the case. Your business plan must show a realistic path to profitability that proves your actual revenues and profits are comparable with your written plan.
  
  
  

• Mistake 3: Leaving something out

  Every business plan follows a certain structure. Lenders and professional readers generally look for 3 or 4 aspects of your plan. You need to ensure you have these elements correctly written in the right area of your business plan.
  
  
  

• Mistake 4: Incorrect format

  Your readers do not expect a 100 page tomb nor a 1 page overview. Getting this fundamental area wrong will show your readers just how inexperienced you are.
  
  
  

• Mistake 5: Poor understanding of marketing

  Communicating your products to your prospects is a critical success factor for every business owner. You need to show you understand your target customers, what their needs are, why they will buy from you and how you will communicate with them.
  
  
  

• Mistake 6: An inability to sell your plan

  Having an accountant prepare your plan may save you a headache, but it is you who needs to explain to your lender or investors every question they have about your plan. You need to understand everything that is written in your plan.