1- Unclear objectives
You should have clear objectives about your business idea or business. Nobody can design your objectives; you should do it. Just take a piece of paper and write your objectives. Make two group: short term and long-term objectives.
I know AI, ML, blockchain are sexy terms and they can be crucial part of your idea. But don’t force and bend your business plan to use those technologies. You should make your business perfect, but unnecessary technology usage can make your business plan weak. A technology without a solid use case just a bullshit and anybody read the plan can understand this.
3- Weak Team
Perfect idea, perfect plan without a team or at least a solid HR plan won’t make expected impact on readers. So, create an HR plan for key activities.
If you talk about software development with one developer for a complicated project, reader lose trust to the plan.
Key activities are activities related to the core business objectives.
4- Optimistic Predictions
Optimism is a good thing for founders. But in the business plan, you should work on risks and worst-case scenarios. The happy path makes your project a fairy tale. People read fairy tales, but they don’t invest in fairies.
5- No competitor!
You have competitors. Believe me, there should be. If you are doing something first and creating an unexisting market, don’t write a business plan, just do it.
6- Unclear Roadmap
A roadmap is so essential. Step by step define your targets and define key performance indicators. Make your project accountable and define the scope.
7- No experience
If you don’t have experience in company management and business life. This is a risk for the investors. Mitigate this risk using your team members or advisory board.
An advisory board is a structured and collaborative method for organizations to engage with external advisors.
8- Unnecessary details
One of the most obvious signs that someone is lying is when they offer a whole lot of unnecessary details. So, if you give a lot of unrelated details in the business plan, readers lose trust in the plan.
9- Template Business Plans
Business plan should tell a unique story about your business. Templates make you ordinary. Don’t use them, be creative and authentic.
10- High Expectation
If you think that the only barrier between you and the investor is a business plan, you are so far away from success. Yes, a business plan helps you. But it is just a tool. You should make a realistic plan about how you will use your business plan.
I am helping companies for business plan preparation and consultancy. If you have time, we can chat about your project.
If you want to reach me and check my references.
Subscribe to DDIntel Here.
Visit our website here: https://www.datadriveninvestor.com
Join our network here: https://datadriveninvestor.com/collaborate
empowerment through data, knowledge, and expertise. subscribe to DDIntel at https://ddintel.datadriveninvestor.com
SINA (Social Innovation Academy)
Raul Hernandez Ochoa
Text to speech