Are you in the stages of writing a
business
plan? Have you written one already,
but feel it could be better? A solid business plan is vital in the early stages
of forming a company.
Your intentions may have a great chance at success, but the good ideas can become
obscured due to a sloppy business plan. The following information highlights
six problems in forming a business plan.
Business plan writing mistake Number 1. Business plan is not written
well
It is important to make a good impression on the reader. Your business
plan casts a reflection on you and your intended business. Grammar, spelling,
style, and punctuation all play a part in the process.
Investors understand they are not planning to take stock in a business formed
by English scholars, yet your plan does speak on your behalf. You do not need
to be a grammar guru, but you can find someone well versed in the English language
to edit your business plan for you. This shows that you give your work the
due diligence it deserves.
Business plan writing mistake Number 2. Poor presentation
Now that your writing is in order, the rest of the plan must follow suit. Make
sure headings are uniform, pictures have labels, technical jargon is explained,
etc. The table of contents is an integral piece of the plan. You may spend
months on your business plan, but investors want to whisk through it with
ease. If they cannot easily navigate to analyze points of interest, they
may discard your plan for one of the countless numbers of others vying for
their attention.
Business plan writing mistake Number 3. The plan is incomplete
Each business
plan has components that are absolutely necessary. Make sure
you include the following elements into your plan:
- Description of customers or target market
- Intended products and services
- Competitors
- Discussion of the industry
- Financial projections
Business plan writing mistake Number 4.The plan is not clear
Your plan may be well written, be in order, and have all the necessary components,
but make sure that it is clear, concise, and to the point. It would be unfortunate
to take up the time of a potential investor only to find that they are not
any clearer on your direction after they have read your business plan.
If you are being vague because you do not want to disclose particular components,
then have the investor sign a non-compete agreement before reading (though
this is not an ordinary predicament).
Business plan writing mistake Number 5. The plan is too verbose
You do not want your plan to be too short. However, you do not want your plan
to be too long-winded either. Remember that the investors do not work in
your industry. They may not be familiar with technical terms and jargon.
Keep the technical details to a minimum. If you would like to include them,
do so in an appendix.
Many people segment the business plan into three parts: A 2-3 page executive
summary, a 10-20 page plan, and an appendix.
Business plan writing mistake Number 6. The plan does not employ
logic
A business plan is suited with a lot of conjecture. After all, you are making
assumptions about the success of your business; yet, you need to support
your conjectures with facts. You need to base the success of your business
off of viable intelligence. That means you need to research extensively before
penning your plan. Investors will not be impressed with a plan that lacks
logical progression or suppositions not grounded in reality.
About the Author
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