Avoid these 4 business plan mistakes

A business plan is like a roadmap, essential for keeping owners focused and on the right track. Unfortunately, many inexperienced owners often send business plans to investors before they are ready to be shared. Below are four common business plan mistakes to avoid when writing up a business plan.

Unrealistic financial projections: If a plan doesn’t have a realistic financial picture of the anticipated growth of a company, then it may be shelved by investors. Owners must be realistic with their financial projections, and make sure they are consistent with any growth in the industry.

No defined target audience: A business cannot appeal to ‘everyone’. Business plans must clearly define their market and potential customers, and include evidence as to why customers would buy the product or service.

Poor research: The research a business plan is based on must be accurate, up-to-date and verifiable. A plan based on little or poor research can lose much of its credibility.

Not addressing the competition: A business plan cannot ignore the competition, or be under the impression that there is no competition. Plans should clearly outline who the competition is and how the business will perform better than its rivals so it can capitalise on it’s advantages.