What is the danger? Business miscalculations are an invariable companion of any project. But even a minor mistake can easily destroy the entire business.
How to avoid? The better the business is planned and organized, the less likely it is to step on a fatal rake.
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Mistakes in writing a business plan
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Business mistakes occur at different stages of a company's development and in different areas. However, every mistake is different, and while some are simply unpleasant, others can ruin even the most streamlined business process. In this article, we will tell you which mistakes most often lead to business closure, and we will talk about problems in various areas of entrepreneurial activity.
Mistakes in writing a business plan
The business plan does not fit on 40 pages
The size of this document directly depends on the organization for which it is being written: if it is a large company, the necessary research and calculations will take up a large share of its volume; if it is a small firm, minor nuances will interfere and distract from the main information.
There is no need to list every detail in a business plan in great detail: write about everything concisely, but informatively and succinctly, substantiating your words with confirmed facts, statistics, research results and real market prices.
For example, if you are choosing office equipment, do not waste time on a detailed explanation of the technical characteristics of various printer and computer models, offer specific ones with an indication of their cost. This approach will allow you to plan expenses in detail and save time on finding suitable equipment in the future.
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The business plan does not meet the requirements stated by the company for which it was prepared
There are two types of these documents: internal (compiled for the company and its employees) and external (for investors or banking organizations). One of the main mistakes in a business plan is non-compliance with the requirements stated by the organization for which it is written.
A document for investors should contain specific and real financial indicators: a person or organization investing money in a certain business wants to understand when it will pay off. Therefore, when drawing up a business plan, it is important to describe all processes in detail and step by step, supporting them with precise calculations.
If you are preparing a document for the purpose of obtaining a loan, be sure to study the requirements of the organization to which you are collecting materials for submitting a loan application - each bank has its own rules.
The business plan does not contain information about manufacturers and suppliers of consumables, production raw materials and equipment
If the document does not contain clear information about the counterparties, it is impossible to accurately calculate the size of their commission, as well as the cost of logistics.
If possible, suggest specific suppliers in your business plan. For example, if you are going to open an ice cream stand in a park area, prepare a list of real companies with a justification for their choice: this plant produces high-quality chocolate popsicles that are in demand in this region and is ready to sell them to a new buyer at pre-crisis prices, and this plant specializes in the production of ice cream with fruit and berry additives - competitors in the chosen location have a very limited range of such products, which means there is an opportunity to stand out from them.
Mistakes in writing a business plan