Your business plan is an important document. It is what can secure the funding you need to start or grow your business. While there are some simple things you can do to create a brilliant business plan, there are also some things you can do that may sink your chances of getting the funding you deserve. Not everybody will trust a new entrepreneur, this is why it is so important to have a strong business plan. To make sure you receive the funding that you need for your business, make sure to avoid these common mistakes.
Along with technical jargon, you want to make sure you avoid including clichés and New Age lingo in your business plan. Most investors that you will be presenting your plan to won’t know the technical jargon of your industry, so you don’t want to alienate them, or make them feel uneducated. Keep your language simple and in line with what you are trying to accomplish.
It’s a Plan, Not a Brochure
When you are writing your company description, the last thing you want to do is include detailed descriptions of every single product you have in your inventory. Although investors are interested in the products you are selling, they are more interested in how you are going to sell them. They want to know who you are planning to sell them to, how you are going to get customers to buy your products, how much you plan to sell them for, and when you expect to put the plan into effect.
The Word “Conservative”
If you state that the numbers reflected in your business plan are “conservative,” you run the risk that your potential investors will think that means your sales will actually be slower and lower than you project. This also implies that the costs that you are expected to incur will be higher than you’ve projected. A better way to express these numbers would be to say that they are “realistic,” according to Luke Lang, co-creator of Crowdcube.com. By saying this you have acknowledged that there is the potential for huge numbers but also know that as a new company with limited resources there is a chance your numbers may not be as large as you hope.
Individual Curricula Vitae
When it comes to the management section of your business plan, it is important to write unique descriptions of the management team you have in place. Simply attaching each employee’s individual curriculum vitae will only make you look sloppy. Trying to secure funding for your business is important, which means you need to take the time to make your sample of business plan shine. This includes each and every section of the plan. If you aren’t good at writing staff bios, you may want to consider hiring a creative writer to help you complete this important part of your business plan.
When it comes to the way your business plan looks, it is extremely important to keep the formatting consistent and clean. Avoid using a variety of different fonts and borders, and keep the formatting simple. You should stick to a 12-point font size and only use a maximum of two fonts, one for your headings and one for the rest of your text. You want to keep your plan tidy and easy to read, avoiding any confusion on the part of your audience.
Your business plan is the document that will get you the funding you need to start your business. Even the smallest of errors can work against you when writing your business plan, according to the writers at Wisteria Business Plans. To make sure you have the best possible chance of seeing your business dreams succeed, it is important to make your business plan the best it can possibly be.