When making a business plan, there are always few common mistakes young entrepreneurs always do.
Knowing these mistakes can help a lot in making your business plan more attractive and effective.
1) Too much unnecessary content
When you see a thick book full of words, don’t you feel demotivated to read?
In the business world, everyone is on the go and time is precious so content is more important than attractiveness.
Avoid using complicated or bombastic words, instead use straightforward words so that reading won’t feel like a chore.
Sometimes a 50 page report is better than a 200 page report.
2) Hiding your flaws
In 2010, I did a fatal mistake by presenting my business plan without any flaws.
So what’s wrong with showing that your business unstoppable? I was thinking of the same thing.
During the presentation, the investors bombarded me with questions about my business’ weakness which I didn’t put any.
I tried to cover that by saying we got it covered but they were unimpressed and thought that I was trying to fool them.
If it’s one thing I or any other investors hate, is the fact that most businessmen often hides their flaws.
NEVER do this.
The reason why you want to show your business plan in the first place is because you either want to get their approval for investments, or simply showing them your progress.
Rule of thumb to bear in mind – NEVER let the investors point out your weaknesses for you.
Not only does it show how arrogant you are, it will also give investors the impression of you not knowing your own business like the back of your own hand.
3) Competitor names are not enough
Competitor analysis is supposed to be thorough because anyone can simply write a name.
Often times the competitor analysis that young entrepreneurs make is not usually more than a list of names and how they can affect the business.
Have you ever watched movies where special agents are involved? Take Batman or Arrow for example.
You need to know EVERY bit of Intel you can gather – How can your competitors outsmart you, what is their next move, their price range, their location accessibility, and why customers buy from them.
You might be wondering why do we need this much info?
Business is all about survival and dominating the market.
If your competitor seems to be having a lot of advantages than you or even worse, they could topple your business down anytime, it’s a wise move to form a partnership with them.
In conclusion, there are a lot of possible things that you can add in a business plan (that’s why it can consist of hundreds of pages) but it is useless if you do not put the main elements that you need in business because honestly, that’s what investors want to see the most.