Writing Your First Business Plan: Mistakes That You Should Avoid
Every great business idea needs an even better business plan. Without a solid presentation of everything required to go from idea to realization, you can’t expect anyone to invest their money or support you. Writing a business plan is a process you need to be familiar with, before attempting to do it. You need to pay special attention not to make any of the most common mistakes.
To help you learn about mistakes and help you avoid them, we’ve put together a list of most typical things you could do wrong while writing our first business plan. Let’s break it down together.
Not Defining the Need For Your Idea
A business plan needs to be written with a clear purpose in mind. There needs to be a properly defined goal you wish to achieve and a vision of its success based on research and facts.
This means that your business idea needs to do one of the following:
- Solve a problem
- Remove an issue
- Help a certain group of people
- Satisfy someone’s needs
You can’t just decide to produce something or provide a service without a clear objective in mind.
That’s why you need to define what makes your business idea unique, necessary, and bound to succeed.
The objective needs to be based on:
- Research of the market
- Investigation of potential competitors
Only with all of these facts together can you claim your idea is worth investing in.
Not Defining The Target Audience
Another major point of your business plan is the target audience.
You need to showcase that you’ve analyzed the market and available data, and came up with certain conclusions based on facts.
So, make sure you point out:
- Who is your target audience?
- Why will they love your idea?
Define the need for your idea and make clear points on why the target audience is going to buy it.
Yes, you believe your idea is the best thing to ever be presented to the world. You’re convinced that it’s going to be huge and people are going to love it.
However, you need to tone down the enthusiasm.
People reading your business plan need to see and feel the following:
- Your passion
- Your determination
- Your vision
But, they don’t what to hear about your personal excitement or level of enthusiasm you’re feeling.
Give them facts which support the potential success of your idea and show you’re ready to make it all happen. But, don’t cross that line.
The way you write your business plan says a lot about the business person you are. This means that you need to write your entire plan in a professional manner to avoid coming across as sloppy or unreliable.
You need to pay attention to:
- Using technical vocabulary
- Maintaining a proper style of writing
- Spelling or punctuation mistakes
Whatever you do, don’t disregard the way you write, since it will reveal so much about you to the person reading it.
Not Addressing The Market
Every business idea has a target market.
You want to sell your idea to certain people who are into a certain industry.
To make your plan work, you need to perform research on the target market and the current situation.
You need to show that are familiar with:
- The trends in the target industry
- The business leaders
- Your biggest competitors
- Recent successes and failures of other business ideas
- Innovation and new technology
“Your business idea needs to be written for the current and future situation in the target market. Write about it in your business plan and cover the most important points to show you’re professional and well-informed,” says Monica Pearson, a CEO, and writer at Grab My Essay.
Unrealistic Financial Assumptions
The bottom line of every business plan or idea is always the money. The question of whether or not this idea is going to be worth the money, energy, and time people invest in it is probably the most important issue.
Simply believing it’s going to work isn’t going to cut it for those reading your plan.
That’s why you need to put together a detailed, reliable, fact-based financial plan which will cover:
- How much money you need to invest
- How much money will you earn
- How much time will it take for the investment to pay off
None of this should be vague or unclear in your plan.
You need to provide solid financial calculations and assumptions to support each claim you make. This is the only way your business plan will work.
Ignoring The Risks
Finally, you need to be aware that there’s always the risk of our plan not to be a success you hope it will.
Everyone around you is aware that there’s the possibility of failure, and so should you.
Ignoring this option in your business plan isn’t going to make it any less obvious or possible.
That’s why you should openly address the risk of failure in a section of your business plan. Cover the following:
- What’s the greatest threat
- What might go wrong
- How much money will you lose
- What potential solution you have if things start to go not according to your original plan
This will show you’re reliable and realistic. That will give a special note of seriousness to your entire business idea.
To ensure your business idea passes the early stages successfully, you need to write a plan that has no weak points. A properly written business plan is worth much more than you can imagine.
The list above gives you guidance for writing your first business plan. Make sure to avoid the mistakes covered above and you’ll have no reason to be worried.
Angela Baker is self-driven specialist who is currently working as a freelance writer at TrustMyPaper writing services and is trying to improve herself and her blogging career. She is always seeking to discover new ways for personal and professional growth and is convinced that it’s always important to broaden horizons. That’s why Angela develops and improves her skills throughout the writing process to help to inspire people. Also, she writes for LiveInspiredMagazine, rounding out her professional writing career.