Planning mistakes limit good outcomes.  

Planning mistakes often involve too much information. 

Remember that business plans are not measured by weight to avoid common planning mistakes. When is a 25-page business plan better than a 200-page business plan? The answer is always small enough to do the job.

Most investors have a mental checklist of five to ten specific points they look for in a business plan. Everything else gets in the way, and the last thing they want to do is wade through pages and pages of tedious and often irrelevant words. Long, complex paragraphs that fill up the half-page are a turn-off.

The purpose of your plan is not to impress the reader with the depth and extent of your knowledge. Your objective is to focus on the plan’s key elements and make your case brief and straightforward.

If you have pages of information that you can’t bear to part with, put them in the back of the plan in an appendix and reference the information in the body of the plan. Readers can then review this information if they think it’s sufficiently important.

Try starting your planning with a One-Page Plan to avoid many planning mistakes. https://goo.gl/ZRbfF6

Hiding weaknesses. 

One of the more challenging aspects of writing a good business plan is effectively dealing with problems or weaknesses, even though every business has them. Here are some of the more common theories offered by unsuccessful plan writers.

Like a heat-seeking missile, if there is a weakness in your product, service or strategy, the savvy investor will find it and probably within the first ten minutes.

Competitive analysis.

Underestimating your competition leads to planning mistakes. The operative word here is “analysis.” Listing the names and addresses of your competitors is not a competitive analysis. The investor is interested in knowing what you expect to see from your competitors in the short term and longer-term:

Knowing little or nothing about your competition proves you haven’t done your homework. While it may not be fatal, it doesn’t help your cause.

Assessment of risks.

Risks are different to weaknesses in that they deal with the future and are generally outside the sphere of your business. What market forces could prevent your plan from being successful in the future? Some common sense should lead you through this exercise. Consider the possible impact of new technology, legislative issues and changes in consumer demand. Various other problems could negatively impact your business, so if in doubt, seek help from your advisor.

Legal entanglements.

Investors today are very conscious of potential legal problems lurking around the corner. If they like your plan, they will conduct their due diligence, but the time to address any potential legal problems is during the plan review. Here are some questions to ask yourself if you’re not sure:

Quotable Quotes.

“You can’t outsource your planning creativity, but you can outsource a catalyst to help you”. Peter Sergeant

“When planning, if you want to progress, never confuse activity with accomplishment”. Peter Sergeant