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The Top 10 Mistakes Made in Business Plans

Top 10 Mistakes Made in Business Plans

Lenders and investors may see hundreds of business plans in
a single day. Make your business plan stand out against
the rest, and avoid these common mistakes.

1.Not proving that you have the management expertise
to make it happen. The quality of your people will lend
credibility to your ideas and even to your financial projections.
If your management team is not as strong as it could be,
join forces with a great board of advisors.

2.Not demonstrating where your revenue will come from -
what customers pay you and why they pay you. Don’t be too
aggressive in setting revenue projections or you will
undermine your credibility.

3.Not proving that your business model and long term cost
structure is good enough to make a real profit. How will
your business make money - what is your margin structure,
what are your costs?

4.Not being clear enough in your product description to
allow the reader to quickly see the need and the niche for
this product. It may seem obvious to you, but not so to the
reader not educated in your business.

5.Not proving that the market opportunity is big enough to
get interested in. How big is your market now and what will
it look like in 5 years?

6.Not adequately acknowledging your competition. Investors
know that if there is no perceived competition, there may be
no market for what you are offering. The better you can
describe your competition, the better you understand your
market, and the more likely you will dominate it.

7.Not writing for the target audience. Although the core is
the same, the plan


should be written for the perspective of
banks, equity investors, and others. Go as far as you can to
tailor each plan to the audience’s specific interests to
show you’ve done your homework and know to whom you are
talking.

8.Starting with a boring, unenthusiastic executive summary.
This is the first section to be read, and if it isn’t
exciting the rest may never be seen. Make it fun and be
enthusiastic. It should stand alone and generate interest
for more. It deserves all the thought you would put into a
professionally done promotional piece for your customers.

9.Poor presentation. If you have typos and grammatical
errors in your business plan, the reader will assume the
work you do in your business is sloppy too.

10.Saying too much. Keep the entire plan to a maximum of 30
pages, with an executive summary of 3 pages or less. If
investors are interested, they will ask for any other
information they need. Amateurs talk in the business plan
about unimportant details because they don’t know what they
should say and what they shouldn’t. Hire a professional
editor to reduce the page count and help you emphasize your
strengths.

About the Author

Jan B. King is the former President & CEO of Merritt Publishing,
a top 50 woman-owned and run business in Los Angeles
and the author of Business Plans to Game Plans: A Practical
System for Turning Strategies into Action (John Wiley & Sons,
2004). She has helped hundreds of businesses with her book
and her ebooks, The Do-It-Yourself Business Plan Workbook,
and The Do-It-Yourself Game Plan Workbook.
See www.janbking.com for more information.

 

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Presentation Zen
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Presentation is the process of presenting the content of a topic to an ... You should plan to rehearse your presentation out loud at least four times. ...
en.wikipedia.org
 
OSCON 2005 Keynote - Identity 2.0
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www.identity20.com
 
Presentations - Effective Communication - Public Speaking
Tips and tools for creating and delivering presentations: text, techniques and technology.
www.presentations.com
 
Presentation Information Resources - Presentation Technology News ...
Presentation Information Resources - Comprehensive presenter's resource providing instant access to up-to-date information on technology and techniques for ...
199.249.170.231
 
Effective Presentations homepage
In addition, the skills needed to prepare an oral presentation can be used ... A spiffy presentation discussing Effective Teaching with Powerpoint from the ...
www.kumc.edu
 
Impress
Your presentations will stand out with 2D and 3D clip art, special effects, animation, ... Slide show Animation and Effects bring your presentation to life. ...
www.openoffice.org
 
PRESENTATIONPRO - experts for Microsoft PowerPoint
A series of products and services to help enhance PowerPoint presentations with templates and backgrounds.
www.presentationpro.com
 
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Presentation, PowerPoint, and Leadership. ... Presentations and reports are ways of communicating ideas and information to a group. But unlike a report, ...
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Secretary of State Addresses the U.N. Security Council
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