Mistakes Entrepreneurs Make In Their Business Plans

Today i am going to state out the mistakes entrepreneurs make in their business plans and Hint on how to tackle these mistakes.
Profit dynamics Inc (2008) revealed eight critical mistakes that entrepreneurs most often commit in their business plans. They include:

  • Failures to explain the business opportunity clearly: Too many entrepreneurs fail to explain why their business ideas make sense and why their business models will be successful.
HINT- Before going or/venturing into any business, make sure your ideas is well defined and give a lay down plans for the success of the business.

  • Unrealistic projections: Entrepreneurs tend to be optimistic, sometimes overly so, and it shows up in the form of unrealistic financial projections.
HINT- Make sure that your forecasts are realistic by comparing them to industry average and verifying them with people who have experience in the industry, Never do you know too much when you have a lot to learn from others.

  • Weak competitor analysis: The one sure path to having your business plan rejected is to say "we have no competition" experienced business people known better! other entrepreneurs run into problem when they underestimate their competitors strength.
HINT- Always take time to identify your primary competitors and learn about what makes them successful and where weaknesses lies. Doing this is a sure path to business success.

  • Overly simplistic assumptions: Some business plans gloss over complex areas that are vital to business success. For example, if a reliable supply chain is a key to your company's success, make sure your plan includes a strategy for assembling one.
HINT- Always study your business to know the next strategy to apply for your company's success.

  • Exaggerating the qualifications of the management team: Venture capitalist invests in management and they investigate thoroughly, the backgrounds of the managers in the start-up companies in which they are considering investing. 
HINT- A business plan should highlight the management team's experience and accomplishment but should not overstate them. Few mistakes will destroy a deal faster.

  • A sloppy plan that contains errors: A business plan is a reflection of its creator. A plan that is filled with errors and mistakes sends up warning signal to potential lenders and investors.
HINT- Always make sure your document are reviewed and free from errors before publishing to avoid disaster in the business.

  • A plan that is incomplete: Venture capitalist tends to trash business plan that are not having key sector or that have insufficient financial data. 
HINT- Always make a complete business plan before putting it to action. Although every entrepreneurs should tell the story of his or her business in a unique fashion, every plan should include the basic elements describe above.

  • Failure to describe the company competitive advantage: A business plan must explain the way in which a company will set itself apart from the competition, what factors will give your business an edge in attracting and retaining customers.
HINT- Always set plans for your business product or your services, know what to render in order to retain your customers.

These are the eight critical mistakes entrepreneurs make and hint to overcome them.

I hope this few point of mine was helpful. Please share with friends and leave a comment below on the comment box, and please subscribe  to this blog for notifications on our next article. Thanks.

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