The stage of writing the business plan is essential when launching a business or a project. This document is crucial as it significantly increases your chances of obtaining financing. However, many entrepreneurs and project leaders often need to correct its design. They can seriously compromise obtaining financing, and it is better to know them to avoid them. Here are 4.
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NOT ANALYZING THE COMPETITION
This is one of the most common mistakes seen in business plan writing. Whatever your sector of activity, note that there is always a form of competition. It would therefore be completely unrealistic to think that you have no competition. You will find all the necessary resources for an excellent competitive analysis of the supernova business. Remember that your target already has habits to satisfy the need you are filling.
A good business plan will allow you to know your competitors. It is the same for implementing the techniques to optimize your commercial strategy.
FORGET THE HUMAN ASPECT OF THE BUSINESS PLAN
The business plan is undoubtedly subject to a strict methodology but must not lack humanity. For many funding organizations, this document must present the entire genesis of the project. They want to know the reasons that led to the idea of the project, for example. In short, the profile of the project’s creator should not be underestimated. With the development of your business plan, you can put yourself forward. So tell your story!
NOT HAVING A VISION
Further, note that the business plan should be a materialization of the long-term vision you have for your business. It is not based on the qualities of the product or service you offer. It goes further, and it’s about the fundamental values of your business. They will indeed have to serve as benchmarks in decision-making. This is how you will honestly know the direction in which to go.
When a company does not have a vision, it may not be sustainable.
A TURNOVER WITHOUT PROOF
The evaluation of your project can only be done with the part devoted to the financial forecast. The forecast income statement must demonstrate the project’s profitability over a specific period. It is, therefore essential to know the turnover that you will have to achieve at least for the following:
- Manage loads
- Remunerate you (eventually)
- Make a profit to self-finance the business.
Some business creators need to be more realistic about this aspect of the business plan. Their sales forecasts are unrealistic, and they cannot justify how the turnover will be achieved. Determining the optimal turnover that will allow the business to profit is already a challenge. The other is more in detailing the strategy to achieve this.
The final step is your ability to justify that these forecasts are achievable.
Also Read: Five Reasons To Create A Business Plan