5 Common Mistakes To Avoid When Creating A Business Plan

5 Common Mistakes To Avoid When Creating A Business Plan

When it comes to getting your small business off the ground, one of the biggest steps you’ll need to do first is create a business plan. Of course, while it is important to include necessary elements in your business plan, it is equally important that you do not commit any of the following mistakes:

1) Procrastinating

Unfortunately, most business owners tend to put off creating their business plan until it’s absolutely necessary, only creating one when an investor or bank asks for a copy. Don’t wait until the last minute. Take the time to plan for both the present and the future, and you’ll find that your efforts will go a long way toward your business success.

2) Being too vague

Avoid talking nonsense and being too vague with your business objectives and goals. Identify specific dates, milestones, budgets, and management responsibilities. If you’re trying to avoid revealing confidential material, then you may want to show interested parties your executive summary first, and then possibly ask them to sign a non-disclosure or non-compete agreement if they want to see more.

3) Being too detailed

Keep it clear and concise. When creating a business plan, remember not to get weighed down by too many details. Focus on the key elements of your business, and keep the technical information to a bare minimum. If you really must discuss the particulars, do so in a later section like an appendix.

4) Conducting inadequate research

It’s essential that your business plan be backed up by research. Ensure that numbers, statistics, and charts substantiate all your projections and assumptions. Also, double-check that your research isn’t dated, or you may just discredit the work you’ve done so far.

5) Claiming your business has no competition

One of the biggest mistakes you can make when creating a business plan is failing to acknowledge the fact that you have any competition. From the very beginning, list the other players in the industry, and identify how you can best compete with them. All businesses have competitors, whether in a direct or indirect form.

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