Before embarking on the path to starting your own small business, you must write up a business plan. This piece of paper is not only incredibly important in seeking loans, it’ll be crucial for investors as well. Believe it or not, your business plan can make or break the future success of your small business. Here are some common pitfalls to avoid when writing up the business plan for your company:
1. Poor Appearance
Poor grammar, spelling, and presentation will hurt your reputation. Although you may spend months perfecting your business plan, most of your readers will spend a few minutes perusing it. Make a great first impression.
Be specific about your goals and ideas for your firm. For example, you should know exactly who your target market is and also demonstrate a solid understanding of that market. Any reader should have a clear sense of your business without having to ask too many questions. Your language doesn’t need to be fancy, but you do have to be succinct and choose your words wisely.
3. Lack of Research
Learn as much as possible about the industry and the world of small business. That knowledge will absolutely shine through in your business plan. And aside from impressing people with your business plan, doing research is important for you as an entrepreneur as well. A prepared entrepreneur will be a successful entrepreneur.
4. Naïve Assumptions
Being naïve when it comes to the process of starting a business will make you seem unprofessional and out-of-touch with reality. For example, it’s important to know and admit that you will have competition in the business world. Try and pinpoint who your competition will be, and how you will deal with that. Thinking that you have no competitors is a sure-fire way to get your business plan tossed out. Furthermore, by addressing your competition, you get to showcase the strengths of your business and why it will be better.