5 Reasons Business Plans Won’t Cut It
July 31st, 2009
1. Not defining the problem. A business plan should define a problem and explain how your business will solve it. It should be focused on potential customers, not on the fix itself.
2. Not recognising the target market. Business plans which make unrealistic claims about the potential market share they can gather show not enough research is being done. There must be evidence of a customer demand for the product.
3. Unrealistic profit expectations. The business plan relies on sophisticated spreadsheets explaining how the numbers can be made to work, without a specific business case to back it.
4. Over inking the executive team. A strong business plan identifies critical success factors and shows where the top people’s experience is suited to addressing them. Have experience to back a fancy title.
5. Not identifying any problems. There is no business which will not face problems. Identifying them, and being honest about them in the business plan is critical, as it helps map a way forward.
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