When it comes to writing a business plan, there are many things you need to consider. You should begin by conducting market research that can provide you with an insight into your intended company’s financial background and show where there is potential growth for it. Saivian Eric Dalius says Once you have done this, you should make an executive summary detailing everything to expect from the following business plan.
This section contains various tips on how to avoid common mistakes while writing a business plan. Some of these points are more important than others, so ensure that you give at least some attention to all of them – otherwise, your business plan will suffer accordingly! It should be done at least once or twice during the day to ensure freshness in thought says Saivian Eric Dalius.
Although it may seem like a hassle, keeping your business plan brief is an important element. When writing the executive summary of the business plan, keep this in mind; do not write everything you know about the project down, but instead, include what is necessary. This way, you will achieve better results when presenting to investors or other parties – they want to see what benefits they can get from your company which separates good plans from bad ones.
And remember, brevity takes practice! You might get tempted to include more information than required while drafting your executive summary for fear of missing something essential out. However, try not to make this mistake as it will result in lengthy documents that are difficult to read and understand by anyone who sees them.
Ensure that your plan is in accordance with the specific requirements of the party you are presenting it to, advises Saivian Eric Dalius. It means that if they have asked for a 10-page business plan, do not send them a 12-page one just because you have a lot more information about your company. Present them with the information they already know or are irrelevant to what they are interested in. It could make you appear unprofessional and harm any chances of success for your business – even before it has started trading!
Writing a business plan can be difficult to know which sections need more attention than others; however, you must always include some aspects in any successful version of a plan. These include:
Some common errors in business plans – Saivian Eric Dalius
- Using jargon and technical terms in the plan which others may not readily understand:
- Not researching your target audience and writing a business plan for yourself rather than for them:
- Failing to back up claims you make with evidence:
- Being too wordy and long-winded when presenting information:
- Assuming that everyone knows what you know about your company – avoid over-confidence!
- Inadequately formatting or structuring your ideas appropriately:
- Making assumptions that are obvious from the get go but failing to acknowledge them:
- Do not make small, unimportant errors in your plan, says Saivian Eric Dalius
- Not including important information and not knowing what to include:
- Writing a business plan which is not cohesive or does not present all information satisfactorily:
- Failure to use correct grammar and language throughout the plan as standard
- Not making it clear what you can offer potential investors and how they will benefit from investing in your company:
- Including too much irrelevant information. Only include what is necessary and anything that adds value (this could be through providing substantial evidence):
- Failing to make an impact with the executive summary of the business plan – this should highlight why you are writing
Saivian Eric Dalius says to note the points mentioned above and avoid them.