The 4 mistakes not to make on your business plan

1) Forget the financial part

A business plan is a complicated document to design. There is the written part and the financial part. Generally, we apply to explain the project but we sometimes simply forget how much money we will need. Or you imagine it, this is the key point for any investor. In summary, the financial part is composed of three tables: the income statement, the financing plan and the cash flow plan. Don’t forget one!

2) Taking too long to write the business plan

Anyone who tells you that he has been on his project for more than six months is off to a bad start to create his business. A business plan will never be completely correct, the figures cannot be completely precise, because a lot of things are presented on consumers. At some point, you have to stop working on this document and start. What is important is to be consistent and not to forget anything. It takes between two and three months maximum to write your business plan.

3) Underestimating expenses and overestimating the arrival of turnover

This is the classic error. We often tend to underestimate the costs, in particular of marketing, communication and referencing. And paradoxically, we always have the impression that we are going to make money quickly. In general, you have to halve the prospects for turnover and not to anticipate too much the moment when we will be able to pay ourselves. Too much optimism when creating a box can have serious consequences. The risk: running out of cash.

4) Neglecting form

A business plan is an act of seduction. It is essential that this document be beautiful so that the message gets through. The mistake is not giving enough importance to form. Blocks of text without images, the absence of colors, risk making this document difficult to digest. The risk ? That the business plan goes to the trash despite all its potential. The presentation must be readable, there must be bold words and tables/graphs. In short, that the main messages stand out.

Photo credit: iStockphoto


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