5 Fatal Mistakes That Will Sink Your Business Plan

5 Fatal Mistakes That Will Sink Your Business Plan

Bad Grammar

Although spoken language is full of slang and double negatives, respected professionals will not be so forgiving when it comes to the language of your business plan. Even honest mistakes like typos can count against you in a serious way – no matter how small, it makes it look like you don’t care enough to pay attention to the details. It might sound tedious, but proofread your business plan multiple times before showing around.

Lack of Focus and Clarity

Remember that your business plan is first and foremost a blueprint. Its sole purpose is to give you a map to move forward and to provide an easy to understand summary of sorts for potential partners or investors. Focus on the specific that are related directly to your business. Don’t waste your time or others by overloading it with unimportant tangents, flowery language, or rambling speculation. A business plan is more likely to do well when its simple, a fast read, and easily understood.

Information Overload

While you obviously want to communicate your ideas clearly and completely, there is such a thing as too much information. Most business plans are about 15 to 25 pages long. Go beyond that and it starts to look less like a well thought out plan and more like a half-baked novel.  Overloading your business plan with unnecessary details can overwhelm potential investors and turn even them off altogether. The same goes for industry jargon – you don’t want to confuse them with unfamiliar terms. If you absolutely need more space to set out your ideas, consider appendices or other supplemental materials.

Failure to Consider Risks and Competition

Your business doesn’t exist in a vacuum. Competitors will always be an issue, no matter how good your product is or how large your company becomes. Dedicate a section of your business plan to how you will deal with such competition. Be realistic about your own strengths and weaknesses. Find ways to make your brand stand out from the crowd. If you wait until a rival is impacting your profits, it’s probably too late.

Formatting Issues

Every entrepreneur knows the importance of appearance. A poorly formatted business plan can leave just as bad of a first impression as any stained shirt or social misstep. Keep things clean, consistent, and easy to read. Avoid long and unbroken sentences or large block paragraphs. Paying attention to details like font, headings, and even margins will make all the difference when it comes to ensuring that your documents look as professional and put together as you do.

Looking to start a business or grow your current business? Contact FL Patel Law today by visiting our website or calling 727-279-5037.