As a new entrepreneur or business owner, you may have already thought of all the issues and concerns you want to address in your business plan. You probably also like to think that you know how to write a business plan.
However, there may be things you aren’t aware of or didn’t take into account. In other words, there may be some common mistakes entrepreneurs make when writing their business plans.
Below is a list of common mistakes in first-time business plans. Knowing these may help you avoid similar issues and ensure that your plan is fool-proof and strong.
1. No Clear Goals Identified
One of the most common mistakes entrepreneurs make when writing their business plans is not identifying any clear goals for their company.
You may have vague ideas of what you want your company to achieve, but these are often too general or can be interpreted differently. Without setting clear goals, you will find it difficult to know if and when you have achieved success with your business.
2. A Lack of True Market Research
Be sure you have done some true market research when preparing your business plan. You should make a list of your competitors and find out everything already available in the marketplace. Your business idea may have problems that you are unaware of, or it may improve a product or service that already exists.
3. Forgetting to Account for Human Resources
Many entrepreneurs forget to account for human resources when writing their business plans. This is a mistake because your plan will only be as good as the people you have available to carry it out. Include appropriate staff levels and each person’s role, along with salaries and training costs if necessary.
4. Weak Financial Projections
It is vital to include accurate and realistic financial projections in your business plan. This is what lenders will look at first and foremost, so your figures must be good. Never assume that your plan will stand up to the unknown.
By avoiding these mistakes, your business plan will be much stronger and more likely to impress potential investors.