BizTips - MAKING YOUR BUSINESS PLAN STAND OUT AGAINST THE REST
A business plan provides direction, keeps you on track and is usually a requirement when you seek finance.
10 common mistakes to avoid -
- Not proving that you have the management expertise to make it happen. The quality of your people will lend credibility to your ideas and even to your financial projections. If your management team is not as strong as it could be, join forces with a great board of advisers (networking events can assist with finding such people).
- Not demonstrating where your income will come from - what customers pay you and why they pay you. Don't be too aggressive in setting income projections or you will undermine your credibility.
- Not proving that your business model and long term cost structure is good enough to make a real profit. How will your business make money - what is your margin structure, what are your costs?
- Not being clear enough in your product description to allow the reader to quickly see the need and the niche for this product/ service. It may seem obvious to you, but not so to the reader not educated in your business.
- Not proving the market opportunity is big enough to get interested in. How big is your market now and what will it look like in 5 years?
- Not adequately acknowledging your competition. Investors know that if there is no perceived competition, there may be no market for what you are offering. The better you can describe your competition, the better you understand you market, and the more likely you will dominate it.
- Not writing for the target audience. Although the core is the same, the plan should be written for the perspective of banks, equity investors and others. Go as far as you can to tailor each plan to the audience's specific interest to show you've done your homework and know to whom you are talking.
- Start with a boring, unenthusiastic summary. This is the first section to be read, and if it isn't exciting the rest may never be seen. . Be enthusiastic. It should stand-alone and generate interest for more. It deserves all the thought you would put into a professionally done promotional piece for your customers.
- Poor presentation. If you have typos and grammatical errors in your business plan, the reader may assume the work you do in your business is sloppy too.
- Saying too much. Keep the entire plan as concise as possible. If investors are interested, they will ask for any other information they need. Amateurs talk in the business plan about unimportant details because they don't know what they should say and they shouldn't. Hire a professional editor to reduce the page count and help you emphasise your strengths.
For assistance with getting a business plan together for your business go to www.businesscentre.com.au or phone the Hunter Business Centre on 4925 7700 to make an appointment with a qualified Businss Facilitator.
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