Avoid Five Fatal Business Planning Mistakes

Many factors comprise an outstanding business plan. However, to create a superb document, it takes time and many revisions. Unfortunately, inexperienced entrepreneurs often send business plans to potential

1. Unrealistic financial projections. Investors expect to see a business plan that paints a realistic financial picture of the anticipated growth of the company. If the plan is overly aggressive and not consistent with growth in the industry, the plan may be shelved. It is best to be realistic with your financial projections. You need to be prepared to defend and explain all important assumptions concerning your projections.

2. Not having a defined target audience. No business will appeal to "everyone." You must clearly define your market and you must present a clear picture of your potential customers — why will they purchase your product or service?

3. Over-hype. Too much hype and the overuse of superlatives can be the downfall of an otherwise sound business plan. Wow them with the business idea, not hype or buzz words.

4. Poor research. In an effort to get a business plan together hastily, many business owners do not double-check and substantiate their claims. Make sure your research is accurate, up-to-date, and verifiable.