| WRITING A BUSINESS PLAN | | | | plan?" |
| - Common mistakes to avoid - | | | | Once the primary objective of the plan has been |
| - Unbelievable Financial Projections | | | | ascertained, it will be easier to ensure that the key |
| Whether you've omitted key figures such as salaries | | | | requirements of the reader are met. |
| or whether the numbers you've forecast are | | | | - Overestimation of Revenues |
| outrageously high, this area is one to be very careful | | | | What constitutes 'excessive' is subjective, but the |
| with. A business plan will need to include everything | | | | numbers will need to be justified. If it becomes |
| from break-even projections to proposed return on | | | | apparent that the figures arefantasy, the author will |
| investments to cash flow forecasts, and somebody in | | | | lose all credibility and therefore potentially jeopardise |
| your team will need to be able to discuss these issues | | | | any confidence the potential investor might have in |
| confidently. | | | | theplan. |
| - No credible Evidence of Demand | | | | - Business Plan Inconsistencies |
| Is the idea or product needed? Wanted? The business | | | | A business plan must be consistent throughout. It is |
| plan needs to demonstrate this need in order to justify | | | | sensible for one person, if possible, to write the plan as |
| the business proposition. | | | | this helps eliminate thepossibility of inconsistencies.. |
| - Lack of a Viable Opportunity | | | | Similarly anybody presenting the plan must present a |
| A business plan must describe an opportunity and | | | | coherent delivery. |
| explain how this opportunity can be exploited profitably. | | | | - Competitors? What competitors? |
| The Plan must also | | | | It is a common mistake to downplay any competitors |
| Show how what is required will be delivered. | | | | in order to promote the idea or product. There are |
| - No Clear Marketing Plan | | | | always competitors to everything, even if it is only for |
| It's easy when drawing up a plan to forget the basics | | | | the finances. It makes more sense to acknowledge |
| about how the customers are going to be accessed. | | | | your competitors rather than ignoring them and as |
| The business plan must include a comprehensive and | | | | stated in the previous tips, honesty is the best policy. |
| credible analysis of how the company intends to | | | | - Don't Rush!! |
| secure access to their target market in a | | | | The business plan MUST be right when it is submitted, |
| cost-effective manner. In this era there are thousands | | | | with the contents accurate, clear and spelt. B business |
| of web sites that are available to help market but how | | | | plans usually need to be completed by a certain date |
| to get noticed in amongst the others is easier said than | | | | and it can be easy to rush to get things ready to |
| done. Knowing who the customer is and how they buy | | | | submit. If this happens the result does not do justice to |
| is essential, but identifying them and accessing them | | | | the proposal. Top tips include:- |
| can be challenging and costly. | | | | The plan is printed on good quality paper; |
| - Poor Cash Flow Management | | | | Tables and Charts have been edited to ensure they |
| It is pivotal to a business' success that the differences | | | | are formatted correctly; |
| between cash and profit are recognised. If this | | | | The plan has been edited down to a digestible size |
| seemingly minor but in reality major, area is overlooked | | | | (Addendum can be provided on request). |
| the result can ultimately be insolvency. | | | | The Plan has been independently proof read by |
| - Cash Flow Management | | | | someone not involved; |
| When writing a business plan it is easy to overlook the | | | | The presentation should be a true reflection of the |
| most obvious - "What is the main purpose of this | | | | plan. |