Wed 04 Feb 2015 | By:

5 Deadly Business Plan Sins That Connecticut Entrepreneurs Make

Business Plan Mistakes to Avoid

A business plan is essential when starting a business in Connecticut, or in any other state or place for that matter. Before you launch a business, it it fundamental that you write a business plan so you’ll have a clear understanding of your purpose, where you want to go and how you’ll achieve your objectives.

If you want to know how to start a business in Connecticut on the right foot, you’ll know once you start writing your business plan. This document covers so many aspects and sections of starting and managing a Connecticut small business, it’s impossible not to find every single question or thing that you’re looking for related to your startup.

A business plan, when written with 99.9% accuracy can help your Connecticut startup a lot, however, if you write one mindlessly, it can cause greater harm than good. While there are certainly business plan mistakes that are minor, there are also major ones that can affect the overall health of your Connecticut small business.

If you’re planning to write a business plan, it’s best that you make yourself aware of the common mistakes that Connecticut entrepreneurs commit while making their business plans. Here’s a list of them.

 

1) Failure to create business goals

Creating specific, measurable, achievable, relevant and time-oriented business goals, or, SMART goals is the first step to write a solid business plan for your Connecticut small business.

Regardless of your purpose for writing a business plan, you need to set goals related to your purpose. If you’re writing one to look for funding, you need to show facts and explain in detail why your business is a great investment opportunity.

Every decision and action that you’ll make while starting your business will circle around your business goals – so you can achieve them. They are your basis and point of reference.

 

2) Rushing to complete the business plan neglecting quality

Every entrepreneur writes a business plan for a certain reason, the most common being a way to find an investor to financially support the business. Regardless of your purpose, you need to make sure that quality output is your priority.

Your business plan is not only a reflection of you, it’s also a reflection of the kind of company you’re starting. Poorly written business plans will cause negative views on your business, nobody will take you or your business seriously.

Business plan mistakes, whether they’re technical or related to grammar are still considered errors so you have to watch out for them. Your business plan must be consistent, accurate, factual and error free – no excuses whatsoever.

 

3) Financial projections are inconsistent

An important section that readers will jump to is the financial section of your business plan, particularly in your Income Statement/Profit and Loss. Although your business’s finances are projected, this doesn’t mean that you can place them directly in your business plan, they to be verified through research and thorough analysis.

The content of your business plan should be defensible and credible. You also need to clearly depict how your Connecticut startup will produce cashflow, proving that it can run profitably to your readers.

 

4) Market route is ambiguous

All business ideas are considered prospective opportunities. During the start of your business, there’s no evidence that will point out that you will be able to enter your target market and generate profit. However, you can assess and study consumer behavior so your can create a detailed path of your market route.

As much as you focus on developing your product, you also have to remember that accessing your target population is also very important. If your customer base is geographically dispersed, the internet is the answer to this problem. It has become a medium for businesses to reach their target market far and wide, but expect that if you use technological means, competition and cost are two factors that you need to consider.

 

5) Ignoring competition

You’re lucky if you are able to come up with a one-of-a-kind and unique business idea that is non-existent and has never before been tried by other entrepreneurs, however, this is quite an impossible scenario.

There’s no such thing as a unique business idea – they may look like it, but they’re actually improved versions of existing businesses. This said, it’s safe to conclude that there will always be competition, no matter how slim they are.

One of the major mistakes that many Connecticut entrepreneurs commit is downplaying competition. Failing to recognize competition is a grave sin, it can cost your business so much. If you’re having a difficult time identifying them, you need to broaden your market definition and thoroughly conduct research.

As an entrepreneur, you have to change your view on the purpose of a business plan. It’s not only a fundraising tool that will enable you to search for financing, it serves a far greater purpose. A business plan is a roadmap that will guide you as you start your new business, it communicates your course of action.

As an author of the plan, you are responsible in ensuring that every information on your business plan is based on facts, analysis and research alone. As much as possible, write and include only relevant information while making sure that you’re still making your plan in a thorough and detailed manner. You owe it to your readers and even to yourself to create a solid business plan that is factual and assumption free.

If you want assistance in writing your business plan, you can use a business plan software. These tech solutions have all the right tools that you need to create a solid business plan in the shortest time possible.

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via DonorsChoose.org.