How many times have you applied for a loan or a grant and after pitching your business plan you get the “am sorry but your business plan doesn’t qualify for our funding.” How often does it happen and what do you think went wrong? This is the reason why your business plan got turned down.
What people are not aware of is that first impression really does matter. Your business plan may be the only impression you make and if it’s not properly sculpted the investor loses interest. Investors come across thousands of really great business plans every year and from the pile of genius ideas and professionally written plans they have to make a choice of what to fund. This is usually difficult for them so the stakes are raised far high and the slightest error or ambiguity could disqualify a business proposal. Here are a few mistakes people make when preparing a business plan;
FAILING TO SOLVE A PROBLEM – if your business plan doesn’t add to the betterment of the society or economy and there are no actual problems being mitigated it would probably be a “NO”
INADEQUATE RESEARCH – if during pitching and analysis the investor finds gaps in information or notices inflated values this would read dishonesty. Investors expect well researched facts and a viable, practical solution to problems.
Being too multi-functional – sometimes business plans are structured to create a variety of services or fit into different market niche. This isn’t a very good idea as investors are likely to invest on a singular Idea which builds into a large outcome.
Business plans should be technical, concise, comprehensive and catchy. It should also explain the risks involved. This is usually better constructed when you opt for professional business plan services.