We see all kinds of mistakes from business plans our clients attempt to put together on their own before they call us. Here are some examples:
1. Not Knowing How to Relate to Investors – Most entrepreneurs don’t understand how to relate to potential investors. I admit – it can be a little tricky. It’s important to remember that these guys read a number of plans every day, so you need to put it in easy terms for them and show them quickly and easily how you can be profitable. Don’t spend too much time explaining why the world is a terrible place without your business. They’ve heard it a thousand times. Tell them why your product is beneficial for people and why they will need or want it. Many people prefer to have the plans written professionally to help with this very aspect.
2. Confusing the Audience – One of the more common mistakes of an entrepreneur when putting together a business plan is forgetting who the audience is. Many new business owners write the business plan in terms that they understand, not realizing that the reader may not understand the industry, market, or concept. You must explain – in plain English – how your company will function and all of your products or services.
3. Failure to Seek Professional Business Plan Assistance – Going to court without a lawyer is never a good idea, and meeting with an investor without having a professional develop a quality plan is equally as dangerous. Even though you won’t end up in jail like failing to have legal representation, you’ll end up not being able to get out of that other prison commonly known as Corporate America. Professionals know how to write a plan that investors want, and your chances for acquiring funding increases dramatically.
4. Not Fully Understanding Your Business Plan – When you go to an investor or loan officer, you should know that business plan like the back of your hand. If you don’t, you risk embarrassing yourself by not being able to answer simple questions.