“Ten Major Mistakes To Avoid In Preparing Business Plans, According To Your Strategic Thinking Business Coach”
“Ten Major Mistakes To Avoid In Preparing Business Plans, According To Your Strategic Thinking Business Coach”
By: J. Glenn Ebersole, Jr., Chief Executive of J. G. Ebersole Associates and The Renaissance Group ™
How many times have you heard about a business failure and one of the keys to that failure was lack of planning and/or a poor business plan? I was recently interviewed for a business publication story on business failures and the relationship of those failures to poor or no planning and to poor business plans. Every business should have a business plan. And the business plan must avoid several major mistakes that make a business plan a “poor” business plan. Here are ten (10) major mistakes to avoid when preparing business plans, according to Your Strategic Thinking Business Coach.
Mistake #1: The business plan is poorly written and contains errors in spelling, punctuation, grammar and style. The business plan is a reflection of your image and a poorly written plan presents a poor image. Careful reviews of the document must be done to ensure there are no errors.
Mistake #2: The business plan presentation is haphazard and inconsistent. The business plan presentation is another expression of your image and inconsistent margins, missing page numbers, incomplete charts and tables without headings, or a missing table of contents will all convey a negative image to the reader.
Mistake #3: The business plan is incomplete. There are many guidelines and templates to use for business plans and they will provide guidance on the areas to include in your business plan. The business plan should include statements of the vision and mission of your business; the core values or guiding principles by which you conduct your business; SWOT analysis; information on the customers, products and services; marketing and sales information; a profile of your management team; analysis of competition; and detailed financial projections (e.g. monthly cash flow and income statements, as well as annual balance sheets--going out at least three years to five years.
Mistake #4: The business plan is too vague. The plan must include specific information.
Mistake #5: The business plan is too detailed. One good way to ensure that the plan does not contain too much detail is to organize your plan into an executive summary (1 or 2 pages); the actual business plan narrative (e.g. 10 to 15 pages); and then an appendix with as many pages of details as is necessary.
Mistake #6: The business plan includes unproven or unrealistic assumptions. Critical assumptions must be highlighted and some sort of rationalization for them must be clearly presented. Poor business plans attempt to hide assumptions throughout the plan. And you need to check your assumptions against established benchmarks or some other acceptable standard.
Mistake #7: The business plan does not include adequate research. Make sure your facts are truly facts. The good business plan will include some numbers, charts and statistics to back up any assumptions or projections you make.
Mistake #8: You make statements that indicate there's no risk involved in your new venture. Let’s face it; there is really no such thing as a "no risk" business. There are always risks. You must understand the risks and present them along with a discussion of how you will minimize or mitigate the risks in your business plan.
Mistake #9: You make statements that indicate your business will have no competition. Savvy business people and investors know there is always competition, which could be direct or indirect. So acknowledge and define the competition in your business plan.
Mistake #10: The business plan lacks the benefits of strategic thinking, a strategic plan and a strategic action plan. A good business plan has strategic elements and a strategic action plan to meet the goals and objectives that will make your business a success.
If you avoid these ten (10) mistakes when preparing your business plan, you will be well on your way to preparing a good business plan. However, there are a few more actions you can take to ensure the development of a good business plan. I would recommend that you get feedback from various sources such as non-competing business owners, potential investors or financial institutions, other professional experts, and some nonprofit organizations that offer advice (e.g. SCORE).
And another suggestion is to seek and hire a professional that you trust to help guide you through the entire process, fill in knowledge gaps, provide additional, unbiased feedback, and package your plan in an attractive, professional format. Writing a business plan is hard work--many people spend a long time writing their plan. A strategic thinking business coach would be one such professional to consider as your guide and facilitator.
If you would like to learn more about the preparing solid business plans and how a strategic thinking business coach can serve as your guide and facilitator in that process, please contact Glenn Ebersole today through his website at www.businesscoach4u.com or by email at jgecoach@aol.com
Ten Major Mistakes To Avoid In Preparing Business Plans According To Your Strategic Thinking Business Coach - To learn more about this author, visit Glenn Ebersole's Website.
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“Ten Major Mistakes To Avoid In Preparing Business Plans, According To Your Strategic Thinking Business Coach”
By: J. Glenn Ebersole, Jr., Chief Executive of J. G. Ebersole Associates and The Renaissance Group ™
How many times have you heard about a business failure and one of the keys to that failure was lack of planning and/or a poor business plan? I was recently interviewed for a business publication story on business failures and the relationship of those failures to poor or no planning and to poor business plans. Every business should have a business plan. And the business plan must avoid several major mistakes that make a business plan a “poor” business plan. Here are ten (10) major mistakes to avoid when preparing business plans, according to Your Strategic Thinking Business Coach.
Mistake #1: The business plan is poorly written and contains errors in spelling, punctuation, grammar and style. The business plan is a reflection of your image and a poorly written plan presents a poor image. Careful reviews of the document must be done to ensure there are no errors.
Mistake #2: The business plan presentation is haphazard and inconsistent. The business plan presentation is another expression of your image and inconsistent margins, missing page numbers, incomplete charts and tables without headings, or a missing table of contents will all convey a negative image to the reader.
Mistake #3: The business plan is incomplete. There are many guidelines and templates to use for business plans and they will provide guidance on the areas to include in your business plan. The business plan should include statements of the vision and mission of your business; the core values or guiding principles by which you conduct your business; SWOT analysis; information on the customers, products and services; marketing and sales information; a profile of your management team; analysis of competition; and detailed financial projections (e.g. monthly cash flow and income statements, as well as annual balance sheets--going out at least three years to five years.
Mistake #4: The business plan is too vague. The plan must include specific information.
Mistake #5: The business plan is too detailed. One good way to ensure that the plan does not contain too much detail is to organize your plan into an executive summary (1 or 2 pages); the actual business plan narrative (e.g. 10 to 15 pages); and then an appendix with as many pages of details as is necessary.
Mistake #6: The business plan includes unproven or unrealistic assumptions. Critical assumptions must be highlighted and some sort of rationalization for them must be clearly presented. Poor business plans attempt to hide assumptions throughout the plan. And you need to check your assumptions against established benchmarks or some other acceptable standard.
Mistake #7: The business plan does not include adequate research. Make sure your facts are truly facts. The good business plan will include some numbers, charts and statistics to back up any assumptions or projections you make.
Mistake #8: You make statements that indicate there's no risk involved in your new venture. Let’s face it; there is really no such thing as a "no risk" business. There are always risks. You must understand the risks and present them along with a discussion of how you will minimize or mitigate the risks in your business plan.
Mistake #9: You make statements that indicate your business will have no competition. Savvy business people and investors know there is always competition, which could be direct or indirect. So acknowledge and define the competition in your business plan.
Mistake #10: The business plan lacks the benefits of strategic thinking, a strategic plan and a strategic action plan. A good business plan has strategic elements and a strategic action plan to meet the goals and objectives that will make your business a success.
If you avoid these ten (10) mistakes when preparing your business plan, you will be well on your way to preparing a good business plan. However, there are a few more actions you can take to ensure the development of a good business plan. I would recommend that you get feedback from various sources such as non-competing business owners, potential investors or financial institutions, other professional experts, and some nonprofit organizations that offer advice (e.g. SCORE).
And another suggestion is to seek and hire a professional that you trust to help guide you through the entire process, fill in knowledge gaps, provide additional, unbiased feedback, and package your plan in an attractive, professional format. Writing a business plan is hard work--many people spend a long time writing their plan. A strategic thinking business coach would be one such professional to consider as your guide and facilitator.
If you would like to learn more about the preparing solid business plans and how a strategic thinking business coach can serve as your guide and facilitator in that process, please contact Glenn Ebersole today through his website at www.businesscoach4u.com or by email at jgecoach@aol.com
Ten Major Mistakes To Avoid In Preparing Business Plans According To Your Strategic Thinking Business Coach - To learn more about this author, visit Glenn Ebersole's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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