Writing a business plan is the first step that you have to take if you want to start a small business in Alaska. A business plan is what separates an entrepreneur who has a dream to a an entrepreneur who has a real vision in mind.
A business plan is the blueprint of your business – it’s a guide that makes your operations possible.
If you want to create the most accurate and professional business plan for your company, you need to familiarize yourself and understand the 5 deadly business plan sins that entrepreneurs from Alaska make.
A business plan is very important most especially if you’re looking for investments to start your Alaska business venture. But not many Alaska entrepreneurs pay close attention to details such as grammar, punctuation and even format.
Although investors, bankers and business professionals don’t expect a perfect business plan, they are very keen when it comes to assessing the kind of entrepreneur you are based on your business plan.
Spelling mistakes, punctuation and grammatical errors are just very small things, but they can be a reflection of you, as the business owner. It is your responsibility to check every detail of your business plan before presenting it to anyone.
Business ideas are significant, however, they are after all, just ideas if you don’t support them with concrete details. What people really want to see is if your business idea is viable based on facts and proper research.
I’m sure that you’ve thought of your product or service as perfect, but if you don’t have the supporting data, your ideas are merely assumptions.
If you take time to do your job and research your demographics, competition, projected growth rates and other statistics you will be able to avoid making claims, assumptions and unrealistic and unfounded business goals.
There’s no definite rule when it comes to writing your business plan, however, you need to make sure that you cover all the important parts that investors and bankers want to see.
Some of the pages that you need to include are the business summary page, a growth model, your target audience and an explanation of the significance of your product/service.
Based on your judgment, you can decide to include topics that I’ve not mentioned. The more important sections that you think you need to include, the better your business plan will be. Just make sure that you don’t make it too long and the relevance of each section is still intact.
In my opinion, this is the number one business plan sin that Alaska entrepreneurs commit on a daily basis. Often, we get too excited with the thought of starting a business and we get blinded by the money that we can gain.
However, things don’t work out as easily as we imagine it. It’s impossible to earn millions in a year, or live in luxury in 2 – it takes much, much longer than that.
When making financial forecasts, you have to be completely realistic when planning your numbers. You need to answer why consumers are going to patronize/buy your product, you need to know where this market is and how you’re going to convince them to buy your products or services – only then can you create realistic financial forecasts.
Many Alaska entrepreneurs believe that stuffing their business plan with a lot of information is good, however, this should never be done. Missing something is not a problem as long as you assess what parts of a business plan are important to include.
Even if you write a one-page business plan; as long as you write it clearly and briefly, and you can explain every section on-point, it will be better than having a long business plan with vague ideas.
Writing a business plan is challenging – it requires hard work and patience. Making your business plan in such a way that it covers the whole picture is difficult – it needs to make sense, it must clearly create a coherent road map for the future of your new business.
Your business plan is the foundation of your future company. It needs your attention, focus, commitment and most of all, time. If you invest the effort and care that your business plan needs, it will create wonders for you in the future as you bring your brand new business into reality.