Typical mistakes when writing a business plan
Posted: Mon Jan 20, 2025 9:07 am
Risks can be identified using the popular SWOT analysis. It evaluates the strengths and weaknesses of a business, which makes it easier to identify opportunities and threats. PESTEL analysis is also used to assess external risks, which includes threats to business from the economy, politics, technology, law, and more. For example, a change in the ruble exchange rate, a change in government, the introduction of sanctions, and an increase in inflation.
Below we have collected 5 main mistakes that bahrain telegram number database entrepreneurs most often make when drawing up a business plan.
The document is too big and there is a lot of "water" - unnecessary information that can be removed, and the text will not lose its meaning. Usually, a sufficient volume of a business plan is from 30 to 40 pages. Large tables and graphs look better in appendices.
Incorrect formatting . This is especially important if you are writing it for a potential investor or lender. Most of them have their own standards for the content of a business plan, and if there are any discrepancies, it may be returned for revision or not considered at all and funding may be denied.
Unverified and too approximate measurable data . Figures taken out of thin air can lead to a fatal error. As a result, you will create a document just for show, and it will not be able to answer the main questions, for example, about realistic payback periods for the project and profitability.
The operating costs of a production, business or service enterprise do not include depreciation . It is good if you buy new equipment, then it will have a guarantee. But often at the initial stages you have to buy used equipment, so its diagnostics, repair and purchase of spare parts must be included in the expenses.
Entrepreneurs do not research the activities of competitors in a specific city or area where they plan to open their business. It is possible that there are already many bakeries in the immediate area, and the only Vietnamese cuisine cafe in the entire large area is not really in demand among the population.
The business plan should also take into account the time for business promotion: the sales volume or traffic in the first few months will not be complete. This means that revenue will vary from month to month. You can forecast income using marketing research and competitor analysis.
Below we have collected 5 main mistakes that bahrain telegram number database entrepreneurs most often make when drawing up a business plan.
The document is too big and there is a lot of "water" - unnecessary information that can be removed, and the text will not lose its meaning. Usually, a sufficient volume of a business plan is from 30 to 40 pages. Large tables and graphs look better in appendices.
Incorrect formatting . This is especially important if you are writing it for a potential investor or lender. Most of them have their own standards for the content of a business plan, and if there are any discrepancies, it may be returned for revision or not considered at all and funding may be denied.
Unverified and too approximate measurable data . Figures taken out of thin air can lead to a fatal error. As a result, you will create a document just for show, and it will not be able to answer the main questions, for example, about realistic payback periods for the project and profitability.
The operating costs of a production, business or service enterprise do not include depreciation . It is good if you buy new equipment, then it will have a guarantee. But often at the initial stages you have to buy used equipment, so its diagnostics, repair and purchase of spare parts must be included in the expenses.
Entrepreneurs do not research the activities of competitors in a specific city or area where they plan to open their business. It is possible that there are already many bakeries in the immediate area, and the only Vietnamese cuisine cafe in the entire large area is not really in demand among the population.
The business plan should also take into account the time for business promotion: the sales volume or traffic in the first few months will not be complete. This means that revenue will vary from month to month. You can forecast income using marketing research and competitor analysis.