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17 Key Business Plan Mistakes to Avoid in 2024

Posted december 6, 2023 by noah parsons.

If you’re like most people and you’re writing a business plan for the first time, you want to make sure you get it right. Even if you follow the instructions in one of the popular business plan templates out there, you can still make mistakes.

After having spent countless hours reading thousands of business plans and having judged hundreds of business plan competitions, I’ve assembled a list of the biggest business plan mistakes that I’ve seen.

What is the biggest mistake when preparing a business plan?

The absolute biggest business plan mistake you can make is to not plan at all.

That doesn’t mean everyone must write a detailed business plan. While you should do some planning to figure out what direction you want to take your business—your plan could be as simple as a one-page business plan, or even a pitch presentation that highlights your current strategy.

Your strategy and ideas will certainly evolve as you go, but taking a little time to figure out how your business works will pay dividends over time.

17 common business plan mistakes to avoid

Assuming you’ve at least decided that you should do some business planning, here are the top business plan mistakes to avoid:

1. Not taking the planning process seriously

Writing a business plan just to “tick the box” and have a pile of paper to hand to a loan officer at the bank is the wrong way to approach business planning.

If you don’t take the business planning process seriously, it’s going to show that you don’t really care about your business and haven’t really thought through how your business is going to be successful.

Instead, take the time and use the planning process to strengthen your understanding of how your business will be successful. It will improve your chances with lenders and investors and help you run a better business in the long run.

2. Not having a defined purpose for your business plan

Why are you writing a business plan?

Is it to raise money? Are you just trying to get your team on the same page as you so they understand your strategy? Or are you planning a new period of growth?

Knowing why you are writing a business plan will help you stay focused on what matters to help you achieve your goals, while not wasting time on areas of the plan that don’t matter for what you’re doing.

For example, if you’re writing an internal business plan, you can probably skip the sections that describe your team.

3. Not writing for the right audience

When you’re putting together your business plan, make sure to consider who your readers are. This is especially important for businesses that are in the technology and medical industries .

If your audience isn’t going to understand the specialized vocabulary that you use to describe your business and what you do, they aren’t going to be able to understand your business.

On the other hand, if your audience is going to be all industry insiders, make sure to write in the language that they understand.

4. Writing a business plan that’s too long

Don’t write a book when you’re putting together your plan. Your audience doesn’t have time to spend reading countless pages about your business. Instead, focus on getting straight to the point and make your business plan as short as possible.

Start with a one-page plan to keep things concise. You can always include additional details in an appendix or in follow-up documents if your reader needs more information.

5. Not doing enough research

You don’t need to spend endless time researching, but your business plan should demonstrate that you truly understand your industry, your target market, and your competitors. If you don’t have this core knowledge, it’s going to show that you’re not prepared to launch your business.

To keep things simple, start with this four-step process to make sure you cover your bases with an initial market analysis.

6. Not defining your target market

Don’t assume your products are for “everyone.”

Even a company like Facebook that now truly does target “everyone” started out with a focus on college students. Make sure you take some time to understand your target market and who your customers really are.

Investors will want to see that you understand who you are marketing to and that you’re building your product or service for a specific market.

7. Failing to establish a sound business model

Every business needs to eventually have a way to make money. Your business plan needs to clearly explain who your customers are, what they pay you, and have financial projections that show your path to profitability.

Without a real business model , where income covers your expenses, it will be difficult to show that you have a viable path to success.

8. Failing to showcase current traction and milestones

Great business plans are more than just a collection of ideas. They also demonstrate that you have early traction — a fancy way of saying that you have some initial success.

This could come in the form of pre-orders from a Kickstarter campaign or initial contracts that you’ve signed with your first customers. Traction can be as little as expressed interest from potential customers, but the more commitment you have, the better. The companion to traction is milestones. Milestones are simply your roadmap for the future — your next steps with details of what you’re going to do and when you’re going to do it. Make sure to include your best guess at your future timeline as part of your business plan.

9. Having unrealistic financial projections

Everyone dreams of sales that start from zero and then just skyrocket off the charts. Unfortunately, this rarely happens. So, if you have financial projections that look too good to be true, it’s worth a second look.

Investors don’t want you to be overly conservative either. You just need to have a financial forecast that’s based in reality and that you can easily explain.

Keep in mind that when first starting out, you may not have exact numbers to work with. That’s perfectly fine. You can work with general assumptions and compare against competitive benchmarks to set a baseline for your business.

The key here is to develop reasonable projections that you and any external parties can reference and see as viable.

10. Ignoring your competitors

Not knowing who your competitors are , or pretending that you have no competition, is a common mistake. It’s easy to say that you have “no competition,” but that’s just taking the easy way out. Every business has competition, even if it’s a completely different way of solving the same problem.

For example, Henry Ford’s early competition to the automobile wasn’t other cars — it was horses.

11. Missing organizational or team information

When you’re starting a business, it’s likely that you haven’t hired everyone that you’re going to need. That’s OK. The mistake people make in their business plan is not acknowledging that there are key positions yet to be filled.

A successful plan will highlight the key roles that you plan to hire for in the future and the types of people you’ll be looking for. This is especially vital when pitching to investors to showcase that you’re already thinking ahead.

12. Inconsistent information and mistakes

This almost goes without saying, but make sure to proofread your plan before you send it out. Beyond ensuring that you use proper grammar and spelling, make sure that any numbers that you mention in your plan are the same ones that you have in your financial projections.

You don’t want to write that you’re aiming for $2 million in sales, while your sales forecast shows $3 million.

13. Including incomplete financial information

You may have a great idea, but a business plan isn’t complete without a full financial forecast. Too many business plans neglect this area, probably because it seems like it’s the most challenging. But, if you use a good forecasting tool like LivePlan , the process is easy.

Make sure to include forecasts for Profit and Loss, Cash Flow, and Balance Sheet. You may also want to include additional detail related to your sales forecast.

For example, if you run a subscription business , you should include information about your churn rate and customer retention.

14. Adding too much information

Don’t fall into the trap of adding everything you know about your business, your industry, and your target market into your business plan. Your business plan should just cover the highlights so that it’s short enough that people will read it.

A simple and concise plan will engage your reader and could prompt follow-up requests for additional information.

Focus on writing an engaging executive summary and push non-critical, detailed information into your appendix — or leave it out altogether and leave the details for those that ask.

Remember, your business plan is there to serve a purpose. If you’re raising money, you want to get that next meeting with your investors. If you’re sharing your strategy with your team, you want your team to actually read what you wrote.

Keep your plan short and simple to help achieve these goals.

What should not be included in a business plan?

Here are a few things to leave out of your plan:

Full resumes of each team member. Just hit the highlights.
Detailed technical explanations or schematics of how your product works. Put these in the appendix or just leave them out completely.
A long history of your industry. A few sentences should be enough.
Detailed market research. Yes, you want market research but just include the summary of your findings, not all the data.

Make sure to include:

Executive summary.
Financial projections.
Market research (just a summary)
Competition overview
Funding needs (if you’re raising money)

15. Having no one review your plan

As with any work that you do, it’s always helpful to have a few other people take a look at your work as you go. You don’t have to please everyone and you don’t have to implement every comment, but you should listen for themes in your feedback and make adjustments as you go.

A fresh pair of eyes will always help spot pesky typos as well as highlight areas of your plan that may not make sense. You can even explore having a plan writing expert review your plan for a more in-depth analysis.

16. Never revisiting your business plan

Business plans are never 100% accurate and things never go exactly as planned. Just like when you set out on a road trip, you have a plan to reach your final destination and an idea of how you will get there.

But, things can change as you go and you may want to adjust your route.

Planning for your business is often the same as that road trip and your plans will change as you grow your business. Keeping your plan updated will help you set new goals for you and your team and, most importantly, set financial goals and budgets that will help your business thrive.

Incorporate your plan into regular review meetings to be sure you’re consistently revisiting it and integrating the time spent reviewing into your current workflow.

17. Not using your business plan to manage your business

Revisiting and revising your business plan is how you use your plan to manage your business. If you aren’t updating your goals and following a budget, you’re flying blind. Your plan is your ultimate tool to help you manage your business to success. You can use it to set sales goals and figure out when and how you should expand.

You’ll use your plan to ensure that you have healthy cash flow and enough money in the bank to handle your growth. Without managing your plan, you’re left to guess and live with a level of uncertainty about where your business is headed.

How a business planning and management tool helps you avoid mistakes

Writing a business plan can seem like a daunting task. Sure, you can do it yourself with free templates and advice like you find on this website . But, doing it on your own can just slow the process down, lead to mistakes, and keep you from actually working on building your business.

Instead, consider using a planning tool, like LivePlan, which features step-by-step guidance and financial forecasting tools that propel you through the process.

LivePlan will help you include only what you need in your plan and reduce the time you spend on formatting and presenting. You’ll also get help building solid financial models that you can trust, without having to worry about getting everything right in a spreadsheet.

Finally, it will transform your plan into a management tool that will help you easily compare your forecasts to your actual results. This makes it easy to track your progress and make adjustments as you go.

So, whether you’re writing a plan to explore a new business idea, looking to raise money from investors, seeking a loan, or just trying to run your business better—a solid business plan built with LivePlan will help get you there.

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Noah Parsons

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Start » business ideas, 5 common sense reasons to write a business plan and 7 mistakes to avoid.

Still not sure if you need a business plan? We tell you why you need one and how to avoid the most common business plan mistakes.

Whether you're seeking investors, financing or simply keeping a focus on company goals, it's important that you write a business plan.

Here are five reasons you should write a business plan before you start planning to launch your startup. A business plan will help you:

Keep sight of your vision. In the course of starting a business, you might get bogged down by small details and forget some of the larger priorities. Writing a business plan at the start of forming your business helps you capture that vision that can keep as a written reference point.

Obtain an understanding of your market. Exploring the hard data on an industry you are thinking of joining will give you perspective on where you fit into the market and what you have to do to achieve greater market share.

Identify and understand your competition. Doing a deep dive on your competitors may help you realize ways to make your business more successful, or give you ideas on how to improve.

Set goals and benchmarks. A comprehensive understanding of your financials will permit you to set measurable goals and determine what moves you should make at certain times.

Confirm the math. If you have only a vague idea of what you need to be profitable, going through the exercise of putting together a business plan will help you firm up your numbers so you can make smart business decisions.

Writing a business plan at the start of forming your business helps you capture that vision that can keep as a written reference point.

Business plan mistakes to avoid

You want to put your best foot forward when it comes to introducing your business to people who are not already familiar with it. Reading your business plan may be the first interaction that a potential investor, lender or other interested party has with your company. When writing your business plan, you should avoid the following:

Poor grammar and wording. Not every business person is an eloquent writer, but that’s not an excuse for errors in your text. Seek the help of an editor to review the plan, especially if you struggle with grammar and verbiage. Enlist additional reviewers, such as friends, family, business partners, an attorney or a financial advisor to look over the plan for content, as well. An outside observer will help point out where you need to explain things.

An off-putting style. In a professional business plan, you want to show that you know your stuff. This means avoiding conversational, folksy or funny wording. Instead, you want to be authoritative and realistic to prove that you have a handle on your industry and are reliable. Find other ways of portraying your personality throughout the plan, perhaps through your descriptions of key members of your team or in the company description. Don’t be afraid to showcase what sets you apart, but be sure to do so tastefully and professionally.

Sloppy format. Structure the business plan with clear and defined sections that are easily understandable. Font, style, spacing and margins should be kept consistent. Include supplemental materials, like charts or graphs, in such a way that they do not interrupt the narrative you are building.

Being too vague or too detailed. The business plan should display your aptitude and understanding of your business, just enough where you are not burying your reader in detail or leaving something to be desired. This means you need to understand exactly what your reader needs to know. Being too vague will squander that opportunity. If you feel you have too much information, however, you can always attach supporting documents in an appendix.

Assumptions. Business plans are built on facts. Have your research in order so you’re not basing assertions on assumptions. That will make the plan seem thin and will likely not accomplish your goals.

Ignoring risks. Every business plan should address the risks of starting a business head on. Not stating these risks and how you plan to cope with them can make you or your plan seem naive. Include a contingency plan for how to handle changes in the market.

Ignoring the customer. It's important to get across why you love your business, but you have to bring it back to how your business benefits your customers. Not talking about the customer is a huge oversight when developing a business plan.

See our Complete Guide to Writing a Business Plan

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Common Mistakes to Avoid When Writing a Business Plan

Crafting a business plan is a delicate balancing act. It demands a deep understanding of your market, a clear value proposition, realistic financial projections, a competent team, and the flexibility to adapt to changing circumstances.

All too frequently, an entrepreneur or business owner may lean on a business plan template or outsourced freelancer, bypassing the essential strategic work that needs to go behind it. This often results in a business plan that is generic and lacks the specific details and insights that make the business unique.

Remember, a good business plan is not just a document; it's a reflection of your business idea and strategy. It's an opportunity to delve deep into your business idea, understand your market, define your value proposition, and plan for your business's future.

So, whether you're a first-time entrepreneur with a new business idea or a small business owner looking to expand, here are some common mistakes made during the business planning process.

Insufficient Market Research

Market research is the foundation of business planning. It's the key to unlocking a profound understanding of your target audience, offering invaluable insights that can steer your business decisions. Without comprehensive market research, you risk basing your strategies on assumptions about your customers' needs and preferences, a misstep that can lead to expensive errors and overlooked opportunities.

In the rapidly evolving business landscape, the freshness of your data is paramount. Markets are in a constant state of flux, and data that was accurate a year ago may not hold true today. This is particularly relevant in the wake of the recent pandemic, which has caused seismic shifts across every industry.

Therefore, it's crucial to not only use the most recent data but also understand the context behind the numbers. This involves analyzing the data in relation to your business goals, industry trends, and market dynamics. It's about asking the right questions: What do these numbers mean for your business? How do they impact your target audience? What opportunities do they present, and what challenges do they pose?

The real value of market research lies in your ability to interpret the data, identify gaps and opportunities, and apply these insights to your business strategy. It's about turning raw data into actionable intelligence that can inform your business decisions.

There's a wide array of tools at your disposal for conducting market research , from free resources to premium platforms. Government resources such as the U.S. Census Bureau can offer a wealth of insights into consumer behavior and market trends. However, for more granular and industry-specific data, you might need to turn to premium sources like IBISWorld or paid industry reports.

Artificial intelligence (AI) has emerged as a potent tool for market research. However, it's important to exercise caution when using AI for data collection. Even advanced AI tools like ChatGPT-4, with the aid of browser plugins, can sometimes provide inaccurate data. Therefore, always cross-verify the sources and accuracy of the data obtained from AI. Remember, a single oversight in your market research can undermine the credibility of your entire business plan.

Where AI truly shines is in its ability to analyze vast amounts of data swiftly and accurately, revealing patterns and trends that might be challenging to discern manually.

Beyond online research, don't underestimate the power of direct interaction with potential customers. Conducting surveys or simply engaging in conversations can offer firsthand insights into your customers' needs and preferences, often revealing valuable information that isn't readily available in online data.

Ignoring Your Target Customer

Your target audience is the lifeblood of your business. They are the people who will use your product or service, advocate for your brand, and ultimately drive your revenue. Therefore, it's crucial to understand who they are, what they need, and what they value.

Start by creating customer personas . These are detailed profiles of your ideal customers, including demographic information, interests, pain points, and buying behavior. This will help you understand your customers' needs and preferences, allowing you to tailor your business plan to meet these needs .

However, understanding your customer is only half the battle. The other half is communicating how your product or service meets their needs and adds value to their lives. This is where understanding your unique value proposition comes into play.

Your value proposition is what sets you apart from your competitors and persuades customers to choose your product or service. Highlight the unique benefits that you offer, such as superior quality, convenience, or affordability. Use clear, concise language that resonates with your target audience. Your value proposition should be the cornerstone of all your marketing efforts, from your website copy to your social media posts.

Neglecting Competitive Analysis

In the realm of business, being unaware of your competitors is a recipe for disaster. Overlooking your competitors can leave you unprepared and unable to counter their strategies effectively. As such, a comprehensive competitive analysis should be a fundamental part of your business plan.

Begin by pinpointing your primary competitors. Scrutinize their products or services, pricing strategies, marketing approaches, and customer feedback. This analysis will help you comprehend their strengths and weaknesses, and identify opportunities for differentiation.

Digital tools can be a great help in this regard. For instance, you can use AI tools like ChatGPT-4 to analyze a competitor's website and summarize its products, services, and unique value proposition. This can give you a clear idea of how your competitors position themselves in the market.

Next, delve into what customers are saying about your competitors. Online reviews on platforms like Yelp! or Google Reviews can provide invaluable insights into what customers like and dislike about your competitors' offerings. This can help you identify gaps in their products or services that you can fill.

If the competitor has a brick-and-mortar location, pay it a visit. Use your powers of observation and take note of their customer service, the arrangement of their store, their product presentations, and any other aspects that could provide insights into their operations. If your business offers a service, consider reaching out to competitors as a potential customer. This can provide valuable information about their pricing structure and sales approach.

Numerous entrepreneurs succumb to the misconception that they have no competitors because their idea is genuinely innovative. Even if your offering is revolutionary, your potential customers are currently allocating their resources elsewhere. This concept aligns with the "Jobs to Be Done" theory, which posits that customers "hire" products or services to perform specific "jobs" or fulfill certain needs. Therefore, you're competing with whatever your potential customers are currently "hiring" to do the job your product or service aims to do, whether it's a similar product, a different solution to the same problem, or even an entirely different product that accomplishes the same job. These constitute your indirect competitors, and comprehending them is just as vital as understanding your direct competitors.

By meticulously examining your direct and indirect competitors, you can start to identify areas where you can distinguish yourself. Your competitive edge lies in the unique traits or abilities that make your business outshine others in your market. This advantage could be derived from your groundbreaking technology, exclusive processes, exceptional team, or a strong brand reputation.

To convey your competitive advantage, your business plan must express how you plan to capitalize on it. This could involve showcasing your innovative technology, underscoring your team's expertise, or demonstrating your brand's solid reputation. Remember, business is a competition, and your goal is to win by convincing customers to choose you over your competitors.

Forgetting The Goal

Different stakeholders have different expectations and requirements from a business plan. For instance, a bank looking at your business plan for a loan application will have different criteria than a potential investor considering an equity investment.

A bank is primarily concerned with your ability to repay the loan. They will focus on your financial projections, cash flow, and collateral. They want to see that your business is stable and has a reliable source of income to service the debt. Therefore, when writing a business plan for a bank , you should emphasize your financial stability and risk management strategies.

On the other hand, an investor is looking for growth potential and a return on their investment. They are interested in your business model, market opportunity, competitive advantage, and exit strategy. They want to see that your business has the potential to scale and deliver a significant return. Therefore, when writing a business plan for an investor , you should highlight your growth strategy and potential return on investment.

Your internal strategic plan, however, serves a different purpose. It's a tool for setting your business goals, defining your strategies for achieving them, and identifying metrics for measuring your progress. It's more detailed and operational than a business plan for external stakeholders. It includes specific tasks, responsibilities, and timelines. Therefore, when writing an internal strategic plan, you should focus on your operational plans and key performance indicators (KPIs).

The language and tone of your business plan should also be adapted to your audience. A business plan intended for a bank or potential investors should be formally written and highly professional, while an internal strategic plan can be more straightforward, using bullet points and an iterative approach that allows for adjustments as needed.

Finally, consider how you'll present your business plan. Banks may not require a highly visual presentation and might prefer a more traditional, text-heavy document. Investors, on the other hand, value more impact, such as a pitch deck or a well-designed executive summary that can help them quickly understand your business model and growth potential.

Being Unrealistic About Your Financial Projections

When it comes to financial projections, achieving a balance between optimism and realism is key. It's crucial to demonstrate to investors that your business has the potential for success, but it's equally important to show that you have a clear understanding of the market and your financials. Overly optimistic projections can raise red flags for investors, leading them to question your financial management skills and decision-making abilities. Conversely, overly conservative projections may make your business appear less appealing and unlikely to yield substantial returns.

Thorough research, market trend analysis, and expert consultation are crucial to creating realistic and achievable financial projections that align with your business goals. By doing so, you gain confidence from lenders and investors and increase the likelihood of securing funding for your business.

To estimate your revenue, consider factors like your pricing strategy, sales volume, and market size. It's important to be conservative in your estimates and consider a sensitivity analysis with best-case and worst-case scenarios.

When forecasting your revenue, consider whether to a bottom-up or a top-down approach . A bottom-up approach starts with the unit sales (like a single product sale) and scales up, while a top-down approach starts with the total market size and estimates what portion of that market you can capture. Both approaches have their merits and can provide valuable insights when used together.

Fixed expenses, such as rent and salaries, remain constant regardless of your business activity, while variable costs, like raw materials and shipping, fluctuate depending on your business activity. By accurately estimating your revenue and expenses , you can create a realistic budget that helps you avoid financial pitfalls.

Don't stop with just the financial forecast, because that alone is only part of your financial health. Your cash flow projection should include your expected cash inflows from sales and other sources, and your expected cash outflows for expenses and investments. This will help you anticipate periods of negative cash flow and plan for contingencies.

In your financial planning, be sure to assess the company's break-even point, which is when your total revenue equals your total costs, and demonstrates the point at which your business becomes profitable.

Neglecting the Importance of Your Team

Your team members are more than just employees; they are the catalysts propelling your business's growth and development. When investors, lenders, and other stakeholders scrutinize your business plan, they are looking for a team that is not only skilled and experienced but also cohesive and committed.

Begin by introducing each key team member. Include their name, role, and a brief biography that highlights their relevant skills and experience. The qualifications of your team should extend beyond their educational background and work history. Emphasize their unique "soft skills" and other talents that make them indispensable to your business. Consider their history of success and how their past experiences can contribute to the growth of your business.

Moreover, the cohesion of your team is equally significant. Illustrate how your team members' skills complement each other and how they work collectively to achieve your business goals.

If you haven't assembled your team yet, discuss your plans for recruitment and training. Outline the qualities and skills you're looking for in potential team members, and explain how you plan to attract and retain top talent. Discuss your strategies for fostering a positive and productive work environment, and how you plan to train your team to ensure they have the skills and knowledge needed to succeed.

Thinking Your Business Plan is Done

Your business plan is a dynamic document that should mirror your evolving business reality and market conditions. It's not a one-off task, but an ongoing process that demands regular review and revision.

To ensure your business plan remains pertinent and effective, it should be reviewed and updated regularly. Establish a review schedule, such as quarterly or annually, and adhere to it. During each review, evaluate your progress towards your goals, identify any shifts in your market or industry, and adjust your strategies accordingly.

Market trends fluctuate, new technologies surface (looking at you AI), and customer preferences change. Keep your finger on the pulse of market trends and disruptions, and be prepared to seize new opportunities as they emerge. This could involve embracing new technologies, penetrating new markets, or pivoting your product or service. By being proactive and adaptable, you can convert market changes and opportunities into a competitive edge.

If your current strategy isn't working, or if new opportunities arise, your business plan should guide you in knowing how and when you need to pivot . This might involve changing your target market, adjusting your product or service, or adopting a new business model. By being flexible and responsive, you can ensure your business remains competitive and resilient in the face of change.

By steering clear of these common mistakes, you can craft a business plan that is comprehensive, compelling, and convincing to your stakeholders. A well-constructed business plan not only aids in attracting funding and customers but also serves as a roadmap for your business's success. Invest the time to do it right, and your business will reap the rewards.

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Common Business Plan Mistakes to Avoid

by I.J. Karam | Dec 7, 2020 | Business Plans

There are many common business plan mistakes you need to avoid if you wish to prepare for a successful startup launch . To help you, we propose in this article to guide you through a list of common business plan mistakes, and show you how you can recognize and dodge them swiftly and easily.

Before we get started, you might be interested to check out our industry-specific Ready-made Business Plan Templates with pre-written text and automatic financials which you can easily customize and adapt to your own project, no financial expertise required .

A business plan is an essential document summarizing a business’ strategy and how to achieve it. While this is obvious for startup ventures, it applies no less to established companies. A compelling, up-to-date business plan ensures everyone is working towards the common goals, and not in different directions.

Unfortunately, many business plans are simply not worth the paper they are printed on.

If you are currently writing your business plan or if you are simply wondering how to write a good one, make sure to avoid these common mistakes.

Common Business Plan Mistake #1: An Unexciting Executive Summary

The executive summary is a crucial part of any business plan. It is a section that effectively summarizes your larger business plan while highlighting main findings and takeaways, as well as the recommended course of action.

Investors, bankers, lenders, CEOs, managers, and senior executives are busy — always. This in turn means your executive summary is an important start; the gateway for the full plan to get the desired attention.

Consider this: In case you had a hundred and one to-do things and someone gave you a 90-page document and requested you read it, the first thing you would probably say is: “But why?”

Therefore, it is imperative that your plan should start with a compelling read. Your executive summary should be to-the-point, highlight the most important points of your document, and summarize your action plan.

However, most executive summaries are not only lackluster, but also incompletely summaries the business idea. No wonder, they fail to elicit the desired response from the business plan reader.

Don’t want that to happen to you? Spend time creating an effective executive summary. To help you do just that, we have listed 5 attributes of a great summary.

Mention the desired end-result

In not more than a couple of sentences state what will change if the need is met, the stated problem is addressed, or the desired goal is reached. You should not list the solution in detail here, but using precise KPIs, stats or numbers is highly recommended as shown in the examples below:

Wrong example:

In the first chapter, we describe how getting more inbound links will boost the website’s SERPs…

Right example:

As per our research, getting the website ranked in the top three results in Google search for this specific keyword will improve the bottom-line by 15%.

Mention the recommended solution

This is the most important part of your executive summary. Always describe the solution to the listed problem that will bring about the desired result.

As much as possible, provide a step-by-step explanation in short paragraphs, with each paragraph referring to that part of the document where you have described the mentioned solution in detail. Also, ensure each paragraph is concise and readable. Furthermore, don’t use jargons, needless abstractions, or biz blab.

Leveraging the new infrastructure will maximize existing technology investments, all the while helping us optimize re-training requirements. Improved reliability, in turn, will boost productivity, giving us a significant monetized competitive advantage.

We propose these steps to resolve the mentioned problem.

Step 1 – Install and evaluate a new system . This way we can test the latest software without jeopardizing our everyday operations. The detailed requirements for installing the new system are mentioned in Section 6.

[Step 2… and so on]

Show how you will handle risks

All business decisions involve certain amount of risk. For this reason, make sure your executive summary includes a word or two on the identified risks, and more importantly, show how you plan to handle them.

Keep this section tight, just like the rest of the summary. Avoid technical mumbo-jumbo or fluff and make sure each paragraph points to the appropriate part of the main document.

The recommended risk mitigation solution is not tied to the services or products of any specific vendor. It uses personalized scripts which can be integrated into different system architectures…

To improve customer service, the best strategy is to re-train the entire client service personnel, which will help us bring down the response time. We will also commission a personalized training manual to be used during the training sessions and placed on every desk as a reference CRM handbook.

Spell out the decision you want to be taken

You should also mention as precisely as possible the decision you want to be taken.

In case the proposed resolution involves money, make sure you list the exact amount needed. In case you want the decision to be taken within a specific time frame, mention that as well.

Our concern regarding our website’s consistently low Google rankings continues to negatively impact the company. That’s why it must be addressed without any delay.

To get our online store ranked among the top 3 search engine results and hence boost our sales, we require you to commission a $100K increase in the annual SEO budget.

Common Mistake #2: A business Plan Lacking Focus

Another common business plan mistake. Does your business plan clearly defines your target market, as well as exactly how you services or products serve the customer’s needs more effectively than the offerings of your competitors?

If no, your business plan may fail to elicit the desired response.

Many a business plan fails because of an unclear focus. More specifically, many business plans fail to clearly define the markets or customers they are targeting and, even worse, they omit to mention how their services or products are better than those of their competitors.

Lack of focus hurts startups even more. If new businesses don’t focus enough on well-defined services or products and target markets, their business plans end-up describing a business whose reasons for existence are not justified. This, as you can guess, is a recipe for failure.

Common Mistake #3: Defining Target Customers Superficially

This common business plan mistake can be deadly for your fledgling company. Often nothing hurts a business plan more than a lack of understanding who the targeted customers are. As a result, your venture may fail to get traction if you define target customers in a generalized way.

It is important to have a clear understanding of who your customers are and how the services and products offered by you add value to them. This includes a more granular understanding of your target market and how your offerings meet the varied needs of different segments of customers.

Here is an example to understand this better.

Let’s say you are coming up with a new travel app. Now saying the app is for all those who love to travel may sound impressive, because this means that your potential customer base is extremely large. However, not all travelers have the same needs, and if you fail to define each target group separately, your app may end up offering only those basic functionalities that all travelers need or being overly complex, since pleasing everyone is a herculean task. Both scenarios are not the best way to achieve success in the long run.

Go deep in your market research and analysis to understand your potential customer base. This is a key factor in your future business success.

Common Business Plan Mistake #4: Unrealistic Evaluation of Business Opportunities

Entrepreneurs must think big, but it is just as important to be meticulous and methodical in your planning. Make sure your view of things is not driven by your dreams — but rather by real data and hard facts. If you have an unrealistic picture of the market size and present the same to the investors, you are not likely to get far. A skewed view of the size of market your company targets typically stems from a superficial or generalized definition of your target customers.

For instance, in case you think that no fewer than 15% of travelers across the world will download your new app, you must have supporting data. Otherwise, your business plan will have dream figures nearly impossible for you to achieve.

Common Business Plan Mistake #5: Not Analyzing the Competition

This is probably one of the most common business plan mistakes. There is a fine distinction between being convinced that your service or product is good and having a distorted view regarding how your offerings measure up against those of your competitors. Some businesses, especially startups, make the mistake of being extremely self-centered, and eventually pay a heavy price for their folly. Another mistake that many entrepreneurs commit is underestimating or completely overlooking the chances of new players entering their market and increasing the competition even further.

If you don’t want your business plan to fall flat on its face, you must put in the effort to thoroughly understand your competition. The one question you must ask yourself is: “Do I really know who my real competitors are?”

Identifying your competitors is crucial to the success of any business, particularly a new one. Precisely for this reason, investors look for a detailed analysis here.

That being said, often identifying your main competitors is not a straightforward task. Here is an example to drive home the point:

Let’s say your company is planning to introduce a really cool salty snack chip product. Your new offering will not only have a unique texture, taste, and appearance but also health benefits.

However, the question is: Do you have it takes to compete in such a highly-saturated and competitive market?

You will not only be competing with all salty snack brands in the market but also against indirect competitors such as salty nuts, popcorns, etc. As you may agree, this looks like a tough ask for any company, especially a startup. When the competition is extremely stiff, it is likely to be extremely difficult — if not impossible — for a newbie to make a mark.

Considering this, you may benefit from targeting a more specific segment, a sub-category where you have more chances of success. For instance, the “healthy multi-grain snacks” sub-category looks more feasible. Here the competition is likely to be far less; hence the higher odds of you being successful.

To sum this point up, if you want to show your business plan readers that you have done your homework well, answer these three questions:

Who are you competing against?

Who are your direct and indirect competitors?

What are the core strengths and main weaknesses of your competitors?

What actions are your competitors planning to take next and how well are you prepared for them?

Common Business Plan Mistake #6: Using Too Much Technical Jargon

It is really natural to be excited about the technical details pertaining to your new service or product, especially if you are a new tech company.

However, the point you must remember is that investors, bankers or lenders are not technical people. So, throwing technical jargons at them right, left, and center may seriously put them off. As a new player looking for funding, that’s the last thing you would want to do, right?

Therefore, keep the technical language to the bare minimum. What your business plan readers are really interested in is the feasibility and marketability of your new offering. So, if you can show them how well your business idea meets the needs of the target customer using a clear and simple communication, you will have them hooked.

Common Business Plan Mistake #7: Underestimating or Neglecting Business Risks

Naturally, entrepreneurs want to spend their energies on finding how to best exploit available opportunities. While this is understandable, ignoring or underestimating business risks can prove fatal.

Business risks will not go away if you don’t identify and tackle them. Instead, in case a risk materializes, your company will be caught unawares. In addition to the risks linked to changing market conditions, demand trends, or increasing competition, you should also factor in regulatory and political risks. For instance, if your business is export-oriented, regulatory barriers, ever-increasing protectionism, and other global trends should be taken into account.

Common Business Plan Mistake #8: Skewed Financial Projections

When some of your assumptions are false — namely, those related to estimated demand, competitive pricing, financial risks, and market size — it is easy to make unrealistic or skewed financial projections in your business plan. However, investors are smart and experienced professionals, who can see through such gaps easily, and often at first glance.

So how can you avoid making this common business plan mistake?

Research, research, and research. While it’s true that no one can accurately predict the future, but when your projections are based on hard, real facts, you are more likely to come close to the mark.

Final Words

A business plan is a crucial document when launching a new venture, but still many entrepreneurs get it wrong. Consequences of that are almost always severe.

The good news is that you can avoid these serious mistakes. This article shows you just that. If you can stay away from these common yet dangerous pitfalls, you will do fine, and your chances of getting the desired action from your business plan readers would increase.

Business plan templates with automatic financials

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No Legitimate 'Hard Copy' Plan

It's true, your mind is an absolutely astounding mind and you're a brilliant entrepreneur. But, you're not a robot. Like the rest of us, you NEED to get that web of interconnecting magic in your head written down or nailed down within professional cloud-based business planning software. This way everything can be parceled out, prioritized, optimized, etc.

Poorly Written Business Plans

Come on, it's the treasure map of your business. If you're too busy to dot your T's and cross your I's then your ability to properly command the troops must be waning. Either that or you're already close to burning out. Regardless of how pretty and polished your it may be, pretend you're the investor with cash on the line and you see common spelling/grammatical business plan mistakes...what would you do?

Overtly Hazy Objectives

Let's focus on a) your pitch, b) Executive Summary, and c) marketing. You can tell how refined objectives in these sections are by verbally practicing them to yourself in the mirror. Are they focused and easy to understand, or jumbled, hazy and not quite there yet? Your pitch should be nothing but power-statements, your Executive Summary filled with specifics, and your marketing goals direct.

Incomplete Business Plans

There are 6 critical areas that need to be completely filled out/thought through: customers, products and services, operations, marketing and sales, management team, and competitors or market analysis. Which means you now have a solid framework to start with no matter what. Although with providers like LivePlan you get access to hundreds of proven/tested customizable templates.

Unrealistic Plans

As an example, let's say you over-estimate the projected value of your company as-is and in the Funding section ask for zillions. Or, let's say you stuff your pitch with delusions of grandeur nowhere near present reality or the foreseeable future. There are many ways you can reduce the authenticity of your business plan; to water it down. Please avoid these and stay 100% genuine/grounded.

Too Many Priorities/Business Goals

This is one of those business plan mistakes that needs to be repeated as many times as it takes because once you reach a certain point it doesn't matter how well-written and polished your goals are...there's too many. No one likes the shotgun approach. Stick with the top three, at most. Anything else can be included in follow-up documents for your team or investors once they hop aboard.

Non-Plan Plans

To be clear - a "business plan" discusses the specifics of starting/growing a business platform. It's not a summary of what you're about and what your personal goals mean to you. Skip that fluff for later and stick to clear business objectives, strategies, the financials, etc.

Plan Properly & Start Smart

Business plans are critical guides and you don't want to waste your time and effort making one only to discover it’s of no use. If you need help writing (or fixing/optimizing), leverage inexpensive business plan software like LivePlan . They're our favorite. Our own 20-page business plan was curated on their platform where we still impeccably maintain it today. It's no risk to you, they have a 60-day money back guarantee (chances are you'll fall in love with their step-by-step approach by then).

For more information, check out our LivePlan review .

Top 10 Business Plan Mistakes When it comes to creating a business plan that attracts investors, these tips will help you get it right the first time.

Every business should have a business plan. Unfortunately, despite the fact that many of the underlying businesses are viable, the vast majority of plans are hardly worth the paper they're printed on. Most "bad" business plans share one or more of the following problems:

1. The plan is poorly written. Spelling, punctuation, grammar and style are all important when it comes to getting your business plan down on paper. Although investors don't expect to be investing in a company run by English majors, they are looking for clues about the underlying business and its leaders when they're perusing a plan. When they see one with spelling, punctuation and grammar errors, they immediately wonder what else is wrong with the business. But since there's no shortage of people looking for capital, they don't wonder for long--they just move on to the next plan.

Before you show your plan to a single investor or banker, go through every line of the plan with a fine-tooth comb. Run your spell check--which should catch spelling and punctuation errors, and have someone you know with strong "English teacher" skills review it for grammar problems.

Style is subtler, but it's equally important. Different entrepreneurs write in different styles. If your style is "confident," "crisp," "clean," "authoritative" or "formal," you'll rarely have problems. If, however, your style is "arrogant," "sloppy," "folksy," "turgid" or "smarmy," you may turn off potential investors, although it's a fact that different styles appeal to different investors. No matter what style you choose for your business plan, be sure it's consistent throughout the plan, and that it fits your intended audience and your business. For instance, I once met a conservative Midwest banker who funded an Indian-Japanese fusion restaurant partly because the plan was--like the restaurant concept--upbeat, trendy and unconventional.

2. The plan presentation is sloppy. Once your writing's perfect, the presentation has to match. Nothing peeves investors more than inconsistent margins, missing page numbers, charts without labels or with incorrect units, tables without headings, technical terminology without definitions or a missing table of contents. Have someone else proofread your plan before you show it to an investor, banker or venture capitalist. Remember that while you'll undoubtedly spend months working on your plan, most investors won't give it more than 10 minutes before they make an initial decision about it. So if they start paging through your plan and can't find the section on "Management," they may decide to move on to the next, more organized plan in the stack.

3. The plan is incomplete. Every business has customers, products and services, operations, marketing and sales, a management team, and competitors. At an absolute minimum, your plan must cover all these areas. A complete plan should also include a discussion of the industry, particularly industry trends, such as if the market is growing or shrinking. Finally, your plan should include detailed financial projections--monthly cash flow and income statements, as well as annual balance sheets--going out at least three years.

4. The plan is too vague. A business plan is not a novel, a poem or a cryptogram. If a reasonably intelligent person with a high school education can't understand your plan, then you need to rewrite it. If you're trying to keep the information vague because your business involves highly confidential material, processes or technologies, then show people your executive summary first (which should never contain any proprietary information). Then, if they're interested in learning more about the business, have them sign noncompete and nondisclosure agreements before showing them the entire plan. [Be forewarned, however: Many venture capitalists and investors will not sign these agreements since they want to minimize their legal fees and have no interest in competing with you in any case.]

5. The plan is too detailed. Do not get bogged down in technical details! This is especially common with technology-based startups. Keep the technical details to a minimum in the main plan--if you want to include them, do so elsewhere, say, in an appendix. One way to do this is to break your plan into three parts: a two- to three-page executive summary, a 10- to 20-page business plan and an appendix that includes as many pages as needed to make it clear that you know what you're doing. This way, anyone reading the plan can get the amount of detail he or she wants.

6. The plan makes unfounded or unrealistic assumptions. By their very nature, business plans are full of assumptions. The most important assumption, of course, is that your business will succeed! The best business plans highlight critical assumptions and provide some sort of rationalization for them. The worst business plans bury assumptions throughout the plan so no one can tell where the assumptions end and the facts begin. Market size, acceptable pricing, customer purchasing behavior, time to commercialization--these all involve assumptions. Wherever possible, make sure you check your assumptions against benchmarks from the same industry, a similar industry or some other acceptable standard. Tie your assumptions to facts.

A simple example of this would be the real estate section of your plan. Every company eventually needs some sort of real estate, whether it's office space, industrial space or retail space. You should research the locations and costs for real estate in your area, and make a careful estimate of how much space you'll actually need before presenting your plan to any investors or lenders.

7. The plan includes inadequate research. Just as it's important to tie your assumptions to facts, it's equally important to make sure your facts are, well, facts. Learn everything you can about your business and your industry--customer purchasing habits, motivations and fears; competitor positioning, size and market share; and overall market trends. You don't want to get bogged down by the facts, but you should have some numbers, charts and statistics to back up any assumptions or projections you make. Well-prepared investors will check your numbers against industry data or third party studies--if your numbers don't jibe with their numbers, your plan probably won't get funded.

8. You claim there's no risk involved in your new venture. Any sensible investor understands there's really no such thing as a "no risk" business. There are always risks. You must understand them before presenting your plan to investors or lenders. Since a business plan is more of a marketing tool than anything else, I'd recommend minimizing the discussion of risks in your plan. If you do mention any risks, be sure to emphasize how you'll minimize or mitigate them. And be well prepared for questions about risks in later discussions with investors.

9. You claim you have no competition. It's absolutely amazing how many potential business owners include this statement in their business plans: "We have no competition."

If that's what you think, you couldn't be further from the truth. Every successful business has competitors, both direct and indirect. You should plan for stiff competition from the beginning. If you can't find any direct competitors today, try to imagine how the marketplace might look once you're successful. Identify ways you can compete, and accentuate your competitive advantages in the business plan.

10. The business plan is really no plan at all. A good business plan presents an overview of the business--now, in the short term, and in the long term. However, it doesn't just describe what the business looks like at each of those stages; it also describes how you'll get from one stage to the next. In other words, the plan provides a "roadmap" for the business, a roadmap that should be as specific as possible. It should contain definite milestones--major targets that have real meaning for your business. For instance, reasonable milestones might be "signing the 100th client" or "producing 10,000 units of product." The business plan should also outline all the major steps you need to complete to reach each milestone.

Smoothing Out the Rough Spots Once you know what mistakes not to make, there are still a few steps you need to take to make your business plan "bulletproof." Be sure you . . .

Think it through. You might have a great idea, but have you carefully mapped out all the steps you'll need to take to make the business a reality? Think about building your management team, hiring salespeople, setting up operations, getting your first customer, protecting yourself from lawsuits, outmaneuvering your competition, and so on. Think about cash flow and what measures you can take to minimize your expenses and maximize your revenue.
Do your research. Investigate everything you can about your proposed business before you start writing your business plan--and long before you start the business. You'll also need to continue your research while you write the business plan, since inevitably, things will change as you uncover critical information. And while you're researching, be sure to consult multiple sources since many times the experts will disagree.
Research your potential customers and competitors. Is your product or service something people really want or need, or is it just "cool"? Study your market. Is it growing or shrinking? Could some sort of disruptive technology or regulatory change alter the market in fundamental ways? Why do you think people will buy your product or service? If you don't have any customers or clients yet, you'll need to convince investors that you have something people really want or need, and more important, that they'll buy it at the price you expect.
Get feedback. Obtain as much feedback as you can from trusted friends, colleagues, nonprofit organizations, and potential investors or lenders. You'll quickly find that almost everyone thinks they're an expert and they all could do a better job than you. This may be annoying, but it's just part of the feedback process. You'll know when you're done when you've heard the same questions and criticisms again and again and have a good answer to almost everything anyone can throw at you.
Hire professional help. Find a professional you trust to help guide you through the entire process, fill in knowledge gaps (for instance, if you know marketing but not finance, you should hire a finance expert), provide additional, unbiased feedback, and package your plan in an attractive, professional format.

Writing a business plan is hard work--many people spend a year or more writing their plan. In the early, drafting stages, business plan software can be very helpful. But the hard part is developing a coherent picture of the business that makes sense, is appealing to others and provides a reasonable road map for the future. Your products, services, business model, customers, marketing and sales plan, internal operations, management team and financial projections must all tie together seamlessly. If they don't, you may not ever get your business off the ground.

Andrew Clarke is the CEO of Ground Floor Partners , a business consulting firm that helps early-stage, small and middle-market businesses grow through design and execution of sound business strategies.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

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40 Common Business Plan Mistakes to avoid when writing your Business Plan

EntrepreneursGateway.com Team
October 29, 2018

This article is part of the Business Planning Hub where you’ll find lots of guides and resources to help you create the perfect business plan!

Would you like to be ahead of your competitors and avoid some the most obvious business plan mistakes people make?

Then you are in the right place.

Be sure to check out the top 40 common pitfalls I’ve listed below, because they are the main reasons business plans fail or are ineffective.

Good business planning comes from experience – and, of course, from trial and error. But not necessarly your own!

By learning from other people’s mistakes, you will be sure to speed up your journey and be one step ahead of your competitors.

Ready? Let’s go.

Unrealistic Financial Projections

One of THE most common business plan mistakes people make is unrealistic financial projections . Investors or lenders expect a realistic picture of where your business currently is and where you expect it to be in the future.

How can you avoid this mistake?

Be sure to be realistic and not overly optimistic.
Give clear explanations of your projections.

If you don’t do this, alarm bells will ring, and all your hard work will be rejected!

Not defining who your target audience is

It’s essential that you define your specific target market , as your business isn’t going to appeal to everyone.

Make sure that you present your assumptions and outline how you will target and communicate with your audience.

Unless you can talk to them, they’re not going to listen and your business won’t take off!

The business plan is poorly written

Punctuation, spelling, grammar, style…

They are all very important when it comes to putting a business plan down on paper.

If investors see a plan full of spelling, punctuation, and grammar errors , they will immediately wonder what else might be wrong with your business !

As there is no shortage of people looking for capital, investors won’t wonder for long…

They’ll just move right on to the next plan.

Make sure your business plan is as well written as it could be, then hire a freelancer to go through it and fix any mistakes you might have missed.

Sloppy plan presentation

Once the written part of your business plan is impecable, you need to make sure that the presentation matches .

Investors do not like to see inconsistent margins, charts without labels, tables without headings, or missing page numbers.

A bad business plan could result in an investor moving on to a much more organized plan in the stack!

An incomplete plan

All business plans need to have details on:

Products and Services,
Marketing and Sales,
Operations,
Competitors,
Management team.

All plans, at an absolute minimum, must cover all these areas .

A good business plan template should include discussions about the industry, trends and whether the market is shrinking or growing.

Finally, your plan should also have detailed financial projections; including income statements, monthly cash flows, and yearly balance sheets.

The business plan is too vague

Always remember:

A business plan isn’t a poem, a novel, or a cryptogram!

If a reasonably educated person has difficulty understanding your plan, then it needs to be re-written.

If, on the other hand, you feel you need to be vague because your plan involves confidential material, technologies or processes, then simply present the executive summary first.

After that, if they are interested in finding out more, you can have them sign a non-disclosure and non-compete agreement before showing them the rest of the plan.

The business plan is too complicated

One of the pitfalls of writing a business plan is making it too technical. This is usually one of the main problems for technology-based start-ups.

You should always keep technical details to a minimum within the main plan.

If you need to include them, you should do so in the appendix.

A good idea is to break your business plan into three parts . For example:

a 2-3-page Executive Summary,
a 10-20-page Business Plan,
an Appendix, which can include as many pages as required.

The business plan makes unrealistic or unfounded assumptions

Business plans are full of assumptions – the most important being that the business will succeed.

However, keep in mind the following:

The most successful business plans both highlight the critical assumptions and provide some kind of rationalization for them.
The bad business plans , on the other hand, just bury assumptions within the plan, leaving investors to wonder where the assumptions actually end and the facts begin.

Many aspects of a business plan to involve assumptions – such as acceptable pricing, market size, and customer purchasing habits. That’s unavoidable. Just make sure that any assumption is made from benchmarks within the same industry, and then tie in your assumptions with facts.

The plan includes inadequate research

It is important to support your assumptions with facts, but it is even more important to ensure that your facts are actually facts .

When writing a business plan, you need to identify and analyze various sources of information.

Find out all you can about the industry that your business focuses on, including customer purchasing habits and overall market trends.

Keep in mind that investors will usually check your numbers against industry data , so that any mismatches could be the difference between receving funding or not!

Claims that there are no risks involved within the new venture

Sensible investors understand and know that there isn’t such a thing as a ‘no risk’ businesses.

Naturally, there are always risks.

However, it is important that you understand the risks before presenting the plan. Should any of them be mentioned, you need to be able to emphasize how they will be minimized .

You claim that you have no competition

It is unbelievable how many potential business owners use this statement within their business plans. And this one sentence couldn’t be further from the truth.

All successful businesses have competition, be it direct or indirect.

You should plan for this from the outset.

Identify and analyze how you can accentuate your competitive advantages.
Show within you business plan how you can use them to compete.

The business plan isn’t a business plan

Good business plans present an overview of the entire business. This is, surprisingly, something most people get wrong, so… how do you avoid this?

Well, it’s not difficult.

Make sure to:

Include the present, the short term, and the long term.
Have a description of how the different stages will be reached – almost like a roadmap.
Include milestones , together with the major steps that will be taken to complete each one.

You are sorted.

Weak market research

Before asking for investment (or investing any money in the business plan yourself!), ensure that all research is airtight .

Don’t settle for a quick Google search!

Read books about your industry, download relevant white papers…

This will prove that you have done your research and are knowledgeable within your area – which will make all the difference when pitching to investors.

Not taking general expenses into consideration

One of the pitfalls of business planning is not considering taxes, insurance, utility bills, and other everyday expenses .

It is all too easy to omit one or more of these bills – and this can cause huge financial miscalculations.

Have you added all your expenses to your business plan?

Limited understanding of cash flow

The bane of most businesses – especially small ones – is cash flow.

It is all too common to see a viable business go under as a result of a temporary cash flow problem; that is to say, a situaion where there are enough customers, but not enough accessible money to pay the bills.

Ensure that your business plan includes the possibility of unexpected expenses, late payments, or short-term losses , as well as a buffer to help if times get difficult.

You will find this extremely helpful when something you weren’t expecting to go wrong actually goes wrong (which, believe me, happens!).

No objectives

Investors need to be given a reason to invest. From the onset, be very clear about the time span necessary for the investor to get their money back, PLUS how much more they can expect to amass.

It is still advisable to include an objective within the business plan, even if an investment isn’t being sought. Perhaps a franchise is in the pipeline, or maybe an expansion within the business…

Basically, success is easier to measure when you know what it is you want out of your business.

Failing to show ‘real’ demand

Just because you think a product is amazing, it doesn’t necessarily mean that there is a market for it.

It is important to see what sort of demand there is for the product.

What does this mean?

Basically, before pumping lots of money into the idea, it is advisable to test the product on a smaller scale – especially if the business start-up costs are high.

This will ensure you are on the right track and won’t incur evitable losses.

Lack of Experience

Ensure that the individuals running the business have the correct skill set.

If you don’t have the necessary skills yourself, hire someone who does!

This is definitely one of the most common pitfalls that can be avoided when preparing a business plan.

Saving on this point now won’t do you any favour in the long run.

Not updating the plan

It may take a few years for the business to get off the ground, but this doesn’t mean that the same business plan should be relied on every year.

Consumer markets are ever-changing.

Realistically, your business plan should be re-visited on average every six months , which also allows for new market research to be carried out.

Failure to estimate realistic startup costs

When writing a business plan, a common mistake is to underestimate the costs of running and launching the business.

It is better to over-estimate costs rather than underestimating them , as this will ensure that the business is adequately covered, especially over the first couple of months.

It is also recommended to:

Separate optional costs from essential ones;
List fixed costs as opposed to those that are variable.

Plans that try to be all things to all people

In your journey to secure an investor, you will no doubt meet different types of people, so don’t make the mistake of using one plan for different investors .

Instead, prior to pitching, make sure to tailor and target your business plan to a specific investor, so that they’ll feel like you are both speaking the same language.

The golden rule is to keep the essential parts of the plan as they are, but to review the industry jargon.

Not detailing key team members and their responsibilities

The management team section ALWAYS needs to include the following:

Who the team members are,
A short biography and outline of their responsibilities.

These need to be tailored around different areas of the company.

Start-up companies should focus on their management’s success in growing and launching ventures, while mature companies should holm in on how their team members successfully work within the framework.

Asking Investors to Sign a Non-Disclosure Agreement

Generally speaking, this is something that most investors will not do – simply because, typically, a business’s concept/strategy is not confidential.

If the strategy/concept has to remain confidential, then this could imply that no barriers apply to competitive entry; and if competitors are easily able to copy the concept, then this would indicate that the model is most likely not sustainable.

The financials aren’t pro forma

A good business plan is fundamentally a map of the future – therefore, it needs to be forward thinking.

Pro forma financial statements are similar to forecasts and allow room for creative projections. They can be utilized to show investors how the business should and can perform, but you must also be prepared to back up any projections .

These statements should be used to provide an overall vision of the dynamic of the business as well as what it can expect to achieve.

Assume investors will read the business plan from back to front… or won’t read it at all

Even if investors don’t read your business plan, you still need to produce one.

A well-researched and constructed business plan is an essential component of any successful business, whether it is seeking investment or not.

Make sure it’s artight and that you know it by heart.

Writing the business plan in one big push

You could think of a business plan as made of blocks and comprised of a set of connected modules.

It is probably best, to begin with, to work on the parts that you find the most interesting or that will provide the most benefit.

That is to say: Don’t try to write a complete business plan in one go.

Break it down into manageable steps and pieces.

Inadequate test procedures and testing

Another common pitfall which must be avoided when preparing a business plan is not carrying out the correct and necessary test procedures .

This could be as simple researching the need for the specific product, or physically testing whether the product actually works or not.

Hiding Weaknesses

Don’t highlight your weeknesses but also don’t hide them.

This is important.

All businesses have weaknesses, and by highlighting or hiding them too much, you risk putting off an investor.

The way forward is to include a strategy, which outlines how any problems will be addressed. In this way they’ll see you are aware of your weeknesses and ready to face them.

Not Knowing the Distribution Channels

A secure plan outlining how the services will be provided or the products distributed is an absolute must .

All possible channels must be included.

If not, it may appear to the investor that the list has merely come off the top of your head.

It is vital that you articulate the strategy as to how the service or product will reach the client.

Being Inconsistent

Quoting conflicting statistics, highlighting different target markets or even including conflicting strategies within a plan can set off alarm bells.

These types of errors could result in an investor challenging exactly how well you know your business and market.

Often, different sections of a business plan are written by different people, then pasted into one document – which is the perfect recipe for inconsistency.

Make sure to carefully review each section of the plan to avoid this mistake.

Of course, you will no doubt believe that your business idea is the best thing ever – which is great.

However, these claims need to be backed up .

Over-hyping a business will not substantiate your service or product.

What you need to do instead is to wow them with the business idea supported by an outstanding financial and research plan .

That’s what an investor wants to see.

Not Anticipating Lenders' or Investors' Requirements

More often than not, business plans barely touch (or miss out completely) the meat and veg of financial planning… and don’t even consider the needs of those supplying the cash!

Here are a few things to keep in mind.

If you are dealing with investors , you must:

Define the primary objectives within a defined exit strategy;
Put in place appropriate percentage ownership and prices.

If you are dealing with lenders , consideration must be:

Why the funds are required,
How much is needed,
Repayment conditions.

Writing the Executive Summary first, not last

The majority of people will read the Executive Summary first and then, based on this, will formulate their initial impressions.

These first pages are critically important and must be strong and well thought out .

Quite often business people will write the summary first, then support it with a plan. However, you should do exactly the opposite.

Because the executive summary provides you with the opportunity to tie everything together , allowing you to check your assumptions and to ensure that the story matches the data within the plan.

By writing the executive summary first, you are not using the process of business planning to learn, and this will show in your summary.

So don’t jump to the solution, but make use of the process!

In this way you’ll be able to produce a well thought out Executive Summary to wow your investors.

Inability or defensiveness to adapt to Feedback

Always show your business plan to your lawyer and make sure they confirm that it meets all the necessary regulatory requirements. If it doesn’t, you need to revise it.

Most people are unable to listen to advice from experienced advisors – which is a recipe for disaster .

Of course, not all feedback is correct, but a key element of business failure is the inability to adapt to fair criticism.

Hiding the plan from your team

A business plan is a management tool.

Obviously, care needs to be taken when sharing with team members (such as salaries, etc). However, don’t be afraid to share measurements and goals.

Use the plan to build up team spirit and you’ll soon see the benefits of this approach.

Confusing cash with profits

There is a big difference between the cash and profits. Your financial situation can be crippled by waiting for customers to pay, whereas the profits won’t be affected.

Basically, profits are an accounting concept, whereas cash is the actual money in the bank.

Always keep this in mind!

After all, profits don’t pay bills – money does!

Diluting your priorities

A plan with focus and power is one that stresses between 3 and 4 priorities .

These are easy for people to understand.

Any plan that lists, for example, 20 priorities… well, quite honestly doesn’t have any!

Fudging the details for the first year

You need to take all details into account, not just cash flow . These include the financials, responsibilities, milestones, and deadlines.

Of course, cash flow is really important; but details regarding setting dates, assigning tasks to people, and outlining what is supposed to be done and by whom are just as important!

After all, a business plan wouldn’t be a business plan without them.

Sweating the details for the future years

This isn’t about accounting, but about planning.

Monthly details are important at the beginning, but as time moves on, they become less important. After all, how can a monthly cash flow be predicted three years from now with uncertain sales forecasts?

Basically, monthly details cannot be planned beyond the first year . Nobody expects them, and nobody will believe them if you do; so make sure to focus on what’s really important.

Overvaluing the business idea

Here’s something very important to keep in mind:

The value of an idea is the business that’s built on it, not the idea itself.

For an idea to become a business, products need to be built, ordered and shipped; phone calls need to be answered; employees need to be coming to work every day; and customers need to be paying their bills. That’s it.

Write a business plan that shows that you are creating a business around a great idea – or simply don’t bother.

A great business is not made by only an idea.

Now, over to you...

Now I’d love to hear from you:

Are you still unsure of which business plan you need?

Maybe you have written a business plan and would like us to review it?

Leave any comments below and I will be sure to answer as soon as they come in!

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Common Business Plan Mistakes

Many startup business plans have the same errors. It seems new business owners have gone through a list of common business plan errors and checked them off! Here's is a list of what to avoid, so you don't make the same mistakes.

What a Lender Wants in a Business Plan

A lender wants to know only two things:

How much money do you want?
How will you pay it back?

That's it. Everything else is just fluff. You don't need a 200-page business plan to tell a potential lender this. Remember KISS - Keep it short and simple. In the thousands of business plans that have been reviewed over the years, these are the most common errors:

Not Using Third Person

Write as if you were not the business owner, but a hired writer talking about the business. Saying, for example, "XYZ Corporation will open its doors on September 1, 2010...." not "We will open our doors ...." The third person (he, she, it, they) sounds more professional and business-like and banker-friendly. If you use the first person, you tend to sound like a cheerleader and less like a reasonable person. I know it seems picky; just trust me on this one.

Not Checking Numbers

If your executive summary states you want $158,000 and your financial statements show you need $190,000, your banker will question your competence. Every number must match in every section of the business plan.

Another example, if you discuss having three employees, but your cash flow shows only salary/benefits for one, you have consistency errors. Have someone go through the plan before you send it out, just to look at all the numbers and make sure they match every time they are used.

Another problem with numbers is being vague with numbers. Don't say, "We'll make a profit soon." What does "soon" mean? In a year? Three years? Some experts say six months to make a profit is a minimum, while others state that three years is a minimum . Of course, it depends on the type of business. In advertising, don't say, "We will spend money on advertising." You should know how much you will be spending over the first year at least. Include details in your narrative as well as in your projections.

If you can't be specific, skip the sentence.

Not Making Sure Everything Is Perfect

I have caught lots of typographical errors, misspellings, sentence fragments, and other small and large mistakes in business plans. For example, one plan I viewed switched fonts several times, back and forth from Arial to Tahoma; another plan changed from the first person to the third person. In another document, photos or graphs were on the wrong pages from what the narrative said they were. Having errors in your business plan sends a message to your lender that you don't care about the details.

Being Too Optimistic

A lender wants realistic, not overly optimistic. For example, over-estimate your expenses and underestimate your income. A lender wants to see what will happen if your "worst case" scenario happens. Use meaningful charts, graphs, financial statements, or spreadsheets to show what your cash flow will look like. Include a break-even analysis , so the lender can see how and when you will start making a profit. Don't spend pages telling how wonderful your business it; talk about how it will provide a benefit to your customers and how it is different from the competition.

Confusing Cash with Profits

Your business can be profitable and you can have no cash. Without positive cash flow over a period of time, your business will not have solvency (ability to pay its bills) or long-term viability (survival). No cash means that business loan isn't going to get paid back and you close your doors. Show how your cash flow will support your loan payment.

Leaving Questions Unanswered

Don't assume your lender knows about your business. Pretend he or she is an idiot (not necessarily untrue, in many cases), at least about the business you are going into. Have someone who is not in your business read the business plan and ask you questions. Then put those questions into the plan in the appropriate place. If confused customers don't buy, confused bankers don't lend.

Not Including an Executive Summary

Business loans often go up the line in a bank, and the higher up executives want to know the "bottom line." Just tell them (1) A sentence or two about your business, (2) How much you need, in numbers or a simple chart, and (3) How you expect to pay back the loan. That's it. One to two pages is all you need for the executive summary. Put it at the beginning, so the reader doesn't have to search for it.

How to Fix these Errors

Most of these errors can be avoided by having several people read your plan. Ask each person to review a specific item above and tell them what to look for. Get a good grammarian/writer to review the plan. Remember, there is no second chance to make a good first impression.

The Most Common Business Plan Mistakes

Small Business
Online Business
Home Business
Entrepreneurship
Operations & Success

Susan Ward has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Reading through these common business plan mistakes before you write one will make the task a lot easier – and give your new business venture a much better chance of success.

Not bothering to write one.

This is far and away the most common error. Entrepreneurs are doers so it's natural that they want to get on with things and get them done – especially when they have an idea that they’re excited about buzzing around in their heads.

But who hasn’t heard the adage "He who fails to plan plans to fail?" And that's the fate of almost every business someone starts without a business plan; failure. So yes, you need to write a business plan.

You don't necessarily need a full-scale formal version of a business plan professionally packaged in a binder (see the next point about purpose), but you do need to have one.

Not being clear about the purpose of your business plan.

A business plan is essentially a solution to a problem, the problem being how you are going to turn your vision of a successful business into a reality.

So why are you preparing a business plan? Is it to persuade a potential lender to give you a business loan? Attract investors? Figure out if your new business idea could actually be turned into a viable business? Serve as a blueprint for your successful startup?

The purpose of your business plan will affect everything from the amount of research you have to go through what the form of the finished plan will look like. If all you want to do is find out if a business idea is a good one that might be worth working up a business plan about, use these five questions to tell if your business plan idea is worth it .

Not having a clear business model.

A successful business has to make a profit. It's astonishing how many people who start small businesses don't seem to grasp this basic fact or are incredibly skilled at ignoring it.

Planning to sell something is not a business model; a business model is a plan for generating revenue over and above your expenses. You can make the best mousetrap in the world, but if it costs you $90 to make each one and people are only willing to pay $10 for one, there’s no point to doing it as a business.

By all means, if it provides you with personal satisfaction and you feel the cost is fair, do it. Otherwise, forget about it and move on to a business idea that does have profit potential. Professional and service businesses can be real dead-end traps if you don't have a clear business model set up.

Not doing enough research.

Not doing enough research to do the job is another common business plan mistake. Your business plan is only going to be as good as the research you put into it. To answer the central question of "Will this work?" you have to find the answers to a whole cluster of other questions, from "What are the current trends in this industry?" to "How will this business counter what its competitors are doing?" And the more complete the answers to the questions, the better prepared you'll be to either start your new business or shelve the idea and move on.

Every section of the business plan will need research except for the Executive Summary. Fortunately, a lot of the required research can be done online, but there’s no getting around the fact that writing a business plan is a lot of work.

Ignoring market realities.

You and what you want to do are only one half of the equation of starting a successful business. The market is the other. You can have the best product or service in the entire world for sale but it doesn't matter if no one is willing to buy it. That is one bedrock, non-negotiable market reality. So it's crucial that you market test your product or service before you try to base a business on selling it.

If you want to sell products, try selling them at local venues, such as farmers’ or flea markets and local trade shows, selling small batches online through eBay or Etsy, using focus groups to gauge interest, or giving out free samples and gathering people's feedback about them.

If you want to sell services, surveys of potential interest or focus groups can work well. Do-It-Yourself Market Research explains how you can do your own market research, including tips for designing surveys and questionnaires.

The competition is another market reality that has to be adequately dealt with in your business plan.

It's not enough to just point out who they are; you need to examine what the competition is doing and explain specifically how you’re going to counter what they're doing to win market share.

You have to make sure you take into account all the competition. Don't just think of those competitors operating exactly the same kind of businesses; think laterally, too, to be sure you identify all competitors. For instance, a prospective flower shop is not just competing against other flower shops in a particular area; it’s also competing with all the other local businesses that sell flowers, including grocery stores and big-box retailers and online flower sellers.

That doesn't mean you have to list every potential competitor in your business plan and explain how you’re going to win the contest with them, but you do have to list and explain how you’re going to deal with the potential threat of each type of competition at least.

Not doing a thorough preparation of financials.

When you look at Writing the Financial Plan Section of the Business Plan, you'll see that you need to put together three financial statements:

the income statement
the cash flow projection
the balance sheet

To do this, you need to figure out how much money you need to start and operate your business and make educated guesses about how much money your new business will bring during its first year of operation.

There are two common mistakes people make when they're tackling this section of the business plan.

The first is not being realistic about their expenses. People often leave out expenses entirely or underestimate the cost of particular expenses. Meticulous research will prevent this mistake.

The second is being overly optimistic about your new business's prospects. You're hoping your new business will do well. You wouldn't choose to start it otherwise, but you mustn't let your optimism lead you to create overly rosy cash flow projections.

Setting your business plan aside after you've written it.

If you write a business plan, use it to get a loan and never look at it again, you're wasting most of its value. A business plan is just that; a plan for how your new business is going to succeed.

Treat it as your new business's first planning document and as you move through the startup period and beyond, edit and add to it as necessary. A pair of good first additions to your business plan is the Vision Statement and the Mission Statement; creating these will solidify your goals and make sure you don't get sidetracked.

Your original business plan will also be a useful reference document when you’re doing the ongoing business planning running a successful business requires. For instance, see Quick-Start Planning for Small Businesses for instructions on how to create an action plan for your small business.

Remember Not Every Business Plan is Worth Finishing

When you're writing a business plan, the answer to the central question, "Will this work?" is not always positive.

And that's fine. It means the business plan is doing its job of showing you whether or not a business idea is worth doing and saving you potentially huge amounts of money and time.

Usually, this discovery occurs during the course of working through a business plan, not at the end. And that's the time to quit developing that particular plan.

If you discover, for instance, that the market for your proposed product is saturated while you're working on the Competitive Analysis section of the business plan, there's no point in carrying on and going to the trouble of preparing financials – your time is much better spent coming up with another business idea that may be more workable.

Perseverance and determination are great traits for entrepreneurs to possess – until they turn into foolish persistence and keep you from accomplishing what you could be accomplishing. That can be the worst business plan mistake of all.

Common Mistakes to Avoid When Creating a Business Plan

By henry sheykin, introduction.

A business plan is an essential tool for every aspiring business owner. It outlines the roadmap to success and can help evaluate the potential of a new venture, determine the needs of the business, and help secure financing or investments. Despite its importance, many business plans fail to meet their objectives due to common mistakes.

Some of the most common business plan mistakes include inadequate research, insufficient financial planning, poor market analysis, neglecting the competitive landscape and unclear objectives. While it requires time and effort to create a good business plan, the results can be considerable. A business plan that is thoughtfully constructed can provide valuable guidance and help mitigate risks in the future.

Market Research Mistakes

When writing a business plan, it's important to leave enough time to conduct detailed market research. This can help you spot potential success opportunities, competitor threats and potential market changes that could affect the business. Unfortunately, many entrepreneurs make mistakes during market research and those mistakes can derail their business plan. Here are a few mistakes to avoid when engaging in market research.

Not performing a competitor analysis

Analysing the competition allows you to understand the current market circumstances and determine how your business would do in comparison. This gives an overview of the potential success potential for your business in comparison to the competition and provides insights on how to differentiate your business from them. Failing to do a competitor analysis can leave your business completely unprepared to enter the market.

Failing to adequately identify the target customer/market

Before embarking on the business journey, it's important to identify the target customer or target market of the business. This is integral to crafting a successful marketing strategy that resonates with the desired demographic. Failing to thoroughly research the target customer or market won’t be beneficial for the business, and can result in a loss of valuable resources.

Underestimating research and development costs

It is often difficult to accurately estimate research and development costs, as there are many factors that need to be taken into consideration. Aside from the cost of conducting research on the latest changes in the industry, costs also include any goods, services or personnel that are needed. Underestimating these costs can cause serious problems when it comes to budgeting, which can lead to cash flow issues down the line. It is important to be realistic when projecting research and development costs.

Cash Flow Mistakes

Cash flow is a tool used to gauge the health of a business. When it is done correctly, it enables businesses to identify and take advantage of opportunities while protecting against financial setbacks. Unfortunately, many business owners make mistakes when creating and managing their cash flow. The following are some of the more common cash flow mistakes to avoid.

Failing to create realistic and accurate sales forecasts

Sales forecasts are an essential component of any business plan. They allow business owners to identify revenue potential and develop plans for growth. Unfortunately, many business owners miss the mark when forecasting sales. To make an accurate sales forecast, business owners should look at historical data, analyze industry trends, and survey the target customer base.

Overlook expenses related to running a business

As part of their cash flow statement, business owners must forecast their operating expenses. It is not enough to just consider overhead costs such as rent, payroll, and insurance. Business owners must also account for taxes, marketing costs, inventory, and other related expenses that are essential to the operation of their business.

Inaccurate cash flow, liquidity, or profit expectations

Profit can be a moveable goal and one of the biggest cash flow mistakes is to have overoptimistic expectations. Cash flows should be monitored frequently to ensure that the goals are realistic and attainable. Knowing when to raise or lower projections can be the difference between success and failure for business owners. It is important to understand liquidity and cash flow in order to make the best decisions for the business.

Financial Projections

Creating an accurate and comprehensive financial projection is an essential component of a successful business plan. Without accurate projections, a business plan is reduced to a mere wishful idea. The following points will help you avoid common mistakes when making your financial projections.

Incorrectly projecting costs and expenses

It is essential that you accurately and realistically estimate your total costs and expenses. Factors such as production costs, materials, utilities, payroll, and tax must be considered. Furthermore, the associated costs for marketing, research, participating in trade shows, and attending networking events must also be included. Do not forget to factor in any additional costs such as rent or loan repayments.

Failing to develop plans for expanding the business

Growing your business means developing plans to spend money in a sensible and responsible way. Your financial projections should include a plan containing steps and strategies for expanding the business. Include potential costs related to expanding your operations, such as additional staff, office space, and marketing materials.

Not measuring profitability

Along with your financial projections, it is essential to decide what metric you will use to measure profitability. Once you have created a financial projection, it is important to measure the actual performance against your projections to ensure you are on track. Some metrics used to measure profitability include:

Return on Investment (ROI)
Net Revenues
Contribution Margins
Cash-to-Cash Cycle

By taking into account the points listed above, you can build financial projections that can better help gauge the potential of your business. Accurate financial projections are an essential component in formulating an effective business plan.

Pricing and Sales Strategies

When putting together a business plan, a formidably detailed market analysis and research is essential. This related to pricing and sales strategies; if too little research conducted, pricing may be too low or too high, as well as failing to set clear goals for sales or customer retention. During the business planning stage, it’s important to look at up-to-date market trends in order to store up a healthy, profitable long-term business.

Neglecting to Research Market/Consumer Trends

Strategic pricing is a key element of business success. Pricing must not only cover costs, but also maximize every sale for maximum profit. Business owners trying to maximize profits can be tempted to lower prices in order to outsell competitors. However, it’s essential to research market and consumer trends before adjusting prices.

Keeping up with market and consumer trends is essential to maximize profits and stay competitive. To this end, it is crucial to conduct research into similar businesses. Are competitors offering better prices and what trends exist?

Setting Price Too Low or Too High

Both setting prices too low and too high can be damaging to a business. When prices are set too low, it is difficult to make a profit; but when prices are too high, customers tend to look elsewhere. Therefore, prices have to have a delicate balance; they need to be high enough to maximize profits, but low enough to appeal to the customer base.

When setting prices, there are various factors to consider; the cost of production, the customer base, and competition must all be taken into consideration. It is also important to compare price points to the perceived quality of the product or service; if customers perceive a value for the price, they are more likely to buy.

Not Setting Clear Goals for Sales and Customer Retention

Setting clear sales goals from the outset is essential; without concrete goals, growth is not achieved. These goals can be related to customer numbers, profit margins and sales revenue. Additionally, customer retention must be taken into account and the number of returning customers has to be set up.

Businesses must also strive for customer satisfaction; returning and recommending customers are key for revenue growth. To fulfill this, businesses must focus on customer service and develop strategies to build customer loyalty. Programs such as loyalty discounts or rewards, as well as insights into customer preferences, also help retain customers.

Investment and Access to Funds

Before executing a sound business plan, it's important to consider both the initial and ongoing costs associated with launching, managing and maintaining a business. Business owners should be aware that their business plan is only as effective as its ability to raise adequate funds to get the company off the ground and beyond.

There are several mistakes business owners should avoid when it comes to accessing funds to start their company. The most common mistakes include:

Not Having Sufficient Funding to Support the Business

One of the most critical mistakes a business owner can make is putting together a business plan without factoring in adequate funds to cover all its anticipated expenses. This could include anything from purchase of equipment and other infrastructure, hiring qualified staff, and creating operating capital for the business.

If funding falls short, the business will struggle to properly launch, which significantly impacts its chances of success. It’s important to sit down and develop a detailed budget of short-term and long-term costs and factor in contingency amounts in case of unexpected expenses.

Not Identifying Potential Sources/Types of Funding

Another common business plan mistake is failing to properly identify potential sources of funds. Businesses should seek financial assistance from three primary sources: private investors, bank grants and/or loans and personal savings. Modifying the business plan for each funding source is recommended in order to emphasize the benefits that the investor or bank is likely to gain out of the deal.

Depending on the type of business, business owners might also need to seek financial support from government programs, private loans and other alternative sources. Dedicating the necessary time to researching, planning and applying for various sources of funding is essential.

Failing to Develop Contingency Plans for Financing

No matter how comprehensive and thorough your business plan and budget is, results don’t always meet expectations. It’s essential to prepare backup plans and alternative sources of funds in case the original source of funding doesn’t come through.

To do so, business owners should identify the most popular funding sources and obtain enough detail about each of those sources to create an action plan in the event of an emergency. That way, you can quickly and easily access alternative funds in case the necessity arises.

Creating a business plan is an essential task for any business owner, but it can be the source of many mistakes. Most notably, business owners may experience misdirected goals, became overwhelmed by the process, spend too much or too little effort, and fail to take into account industry specifics. To counter these issues, it is important to consider the overall goals and strategies, allocate sufficient time for the business plan, and research competitors and the industry.

By recognizing popular mistakes and taking steps to avoid them, business owners will have a better chance of achieving success. For instance, business owners can start by analyzing their market and their target customers, determine the goals and strategies, and construct the key structures of the business plan. Evaluating the data, finding the right resources, and assessing progress and potential success will also ensure a well-structured, relevant business plan.

At the end of the day, establishing a good business plan is one of the most important steps when starting a business. By investing the time to understand common mistakes and take proactive steps to avoid them, entrepreneurs will improve their chances of success.

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Seven Common Business Plan Mistakes

Though every small business is unique, many successful ones start with a common foundation: a business plan. Researching and writing a business plan is an important step in laying out the road map your business will travel, and an indispensable step in securing funding for startup costs or growth. Save time and energy by avoiding these common business plan mistakes.

Seven top business plan mistakes:

1. Not making one

As an entrepreneur, surely you’re more excited about doing the thing you want to do that writing a plan about it. But recall the wisdom of Yogi Berra: “If you don’t know where you’re going, you’ll end up somewhere else.” Without a plan, you’re likely to spend valuable time and energy pursuing fruitless paths and spreading yourself thin. Make completing your plan a priority to focus your energy, stay on the right path, and improve your chances of landing a small business loan.

2. Being unrealistic

This can happen on a number of fronts if you’re not willing to ask hard questions, do concrete research, and be honest with yourself. Your business plan can’t represent the best case scenario or the way you hope things go: it has to grapple with the reality of the marketplace, financial truths, and the entrepreneurial landscape. Focus on being realistic in a few key areas:

Financial projections: Don’t pad or overinflate your future earnings projections. At best, you’ll look like you don’t know what you’re doing and a bank won’t trust you enough to lend you money. At worst, they’ll lend you the money and you’ll go into default or bankruptcy.
Competition: A big red flag in many business plans is a belief that you have minimal competition — or even none. “You’re always competing for dollars,” said RISBDC counselor Manuel Batlle. Even if your product is unique, your target customers still have choices about what to do with their money. You must address how you will persuade your target market to give their dollars to you .
Market research: It doesn’t matter what you want to build or sell. Someone has to be willing to buy it for a price that makes it worth selling. No business plan is complete without investing time and energy in up-to-date market research to truly understand market trends, customer interest, competitor performance, and other aspects of product or service viability.
Customer base for brick and mortar businesses: Your mother may be willing to drive across the state to buy a soda from you, but probably no one else will. For many products and services, your customers are going to be local. Particularly in Rhode Island, customers may be searching within walking distance, or a 5-10 minute drive. Dig deep into the census information on demographics in your area and be realistic about how many target customers are within buying distance.

3. Poor executive summary

A lender will read your business plan’s executive summary and “give it the sniff test, then the gut test,” said RISBDC business counselor Josh Daly. The lender may decide whether or not to continue reading based on what their intuition tells them. So the executive summary is worth focusing on. Someone without a deep business background should be able to understand it, and it should make the case that your business is viable in short, clear points. Daly recommends 1-3 sentences each on your business background, customer base, the market, the competition, your qualifications, and your team. A concise summary should fit into about two pages and convince your audience to keep reading. If your plan is focused on securing financing, prospective lenders should immediately know how much money you are looking to borrow and how the money will be used.

4. Too long

For a majority of small businesses, a succinct and well-organized business plan should be 5-10 pages long. An engaging business plan includes visuals, where appropriate, to avoid wordiness when a graph, chart, or map will tell the story more effectively. Additional supporting financial projections or research data can go in an appendix. Plans that are significantly longer don’t necessarily give more or better information, and they risk losing their audience before they’re actually read.

5. Not backing up what you say

Along with being realistic in discussing your projections and your market research, you also need to make sure you’re using data and references — not just anecdotes — to support what you’re claiming.

6. Not focusing on the team, and your role as the head

No small business owner has every skill and personality trait needed to take a business all the way from the seed of an idea, to the world, all by him or herself. It’s appropriate and important to identify and address gaps in your experience and education, and explain how you’ll overcome them. It’s also crucial to briefly introduce your top team members, sell their contributions to your company, and portray how together, your team is well-rounded and ready to tackle the challenges ahead.

7. Sloppy mistakes

Typos, grammatical errors, and poor formatting are completely avoidable enemies, taking the shine off your first impression. Your business plan needs to look professional because it’s going to speak for you. Use spell-check. Re-read your plan. Get lots of sleep and re-read it again. Then, even if you’re a great writer and a stickler for detail, have someone else check it over for things you’ve missed. Never underestimate the value of a pair of fresh eyes.

Though you should be ready to put time and effort into your business plan, you don’t have to do it alone. The RISBDC offers workshops and no-cost, one-on-one business counseling to help you refine your plan and take the next steps toward business success.

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Seven Common Business Plan Mistakes

Though every small business is unique, many successful ones start with a common foundation: a business plan. Researching and writing a business plan is an essential step in laying out the road map your business will travel and an indispensable step in securing funding for startup costs or growth. Save time and energy by avoiding these common business plan mistakes.

Seven Top Business Plan Mistakes:

1. not making one.

As an entrepreneur, surely you’re more excited about doing the object you want to do than writing a plan about it. But recall the wisdom of Yogi Berra: “If you don’t know where you’re going, you’ll end up somewhere else.” Without a plan, you’re likely to spend valuable time and energy pursuing fruitless paths and spreading yourself thin. Make completing your project a priority to focus your energy, stay in the right direction, and improve your chances of landing a small business loan.

2. Being Unrealistic

This can happen on a number of fronts if you’re not willing to ask hard questions, do concrete research, and be honest with yourself. Your business plan can’t represent the best-case scenario or the way you hope things go: it has to grapple with the reality of the marketplace, financial truths, and the entrepreneurial landscape. Focus on being realistic in a few key areas:

Financial projections : Don’t pad or overinflate your future earnings projections. At best, you’ll look like you don’t know what you’re doing, and a bank won’t trust you enough to lend you money. At worst, they’ll lend you the money, and you’ll go into default or bankruptcy.
Competition : A big red flag in many business plans is a belief that you have minimal competition — or even none. “You’re always competing for dollars,” said RISBDC counselor Manuel Batlle. Even if your product is unique, your target customers still have choices about what to do with their money. You must address how you will persuade your target market to give their dollars to you.
Market research : It doesn’t matter what you want to build or sell. Someone has to be willing to buy it for a price that makes it worth selling. No business plan is complete without investing time and energy in up-to-date market research to truly understand market trends, customer interest, competitor performance, and other aspects of product or service viability.

3. Poor Executive Summary

A lender will read your business plan’s executive summary and “give it the sniff test, then the gut test,” said RISBDC business counselor Josh Daly. The lender may decide whether or not to continue reading based on what their intuition tells them. So the executive summary is worth focusing on. Someone without a deep business background should be able to understand it, and it should make the case that your business is viable in short, straightforward points. Daly recommends 1-3 sentences each on your business background, customer base, market, the competition, your qualifications, and your team. A concise summary should fit into about two pages and convince your audience to keep reading. If your plan is focused on securing financing, prospective lenders should immediately know how much money you are looking to borrow and how the funds will be used.

4. Too Long

5. Not Backing Up What You Say

6. Not Focusing on the Team and Your Role as the Head

No small business owner has every skill and personality trait needed to take a business all the way from the seed of an idea, to the world, all by him or herself. It’s appropriate and essential to identify and address gaps in your experience and education and explain how you’ll overcome them. It’s also crucial to briefly introduce your top team members, sell their contributions to your company, and portray how, together, your team is well-rounded and ready to tackle the challenges ahead.

7. Sloppy Mistakes

In conclusion, there are many common mistakes that entrepreneurs make when writing business plans. By avoiding these mistakes, you can raise your chances of success.

Here are some of the most common business plan mistakes:

Not doing enough research . Before you start writing your business plan, you need to do your research and understand the market. What are the needs of your target customers? What are the trends in your industry?
You are not being specific . Your business plan should be straightforward. This means outlining your goals, strategies, and financial projections in detail.
It is not being realistic . Your business plan should be accurate. This means setting goals that are achievable and projecting financials that are based on sound assumptions.
You are not being persuasive . Your business plan should be compelling. This means writing in a clear and concise way that will convince investors or lenders to fund your business.

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Business Plan Mistakes: The 6 Biggest Mistakes to Avoid

In showing you the six biggest mistakes to avoid in your business plan, it’s helpful to start with the goal of your plan. in general, this goal is to get someone else to say “yes.”, that someone may be an investor or lender who you want to write you a check. it might be an employee you want to join your company. it might be a firm with which you want to partner. in any case, you want them to say “yes” to your plan., thinking about it this way, you will realize that your business plan is essentially a marketing document. its goal is to market your business to the reader and get them to say “yes.” anything that could dissuade them from saying “yes” is thus a mistake., below i will cover the most common mistakes., 1. typos and bad grammar.

The first mistake to avoid in your business plan are typos and bad grammar. Consider the following statement/question a prominent venture capitalist once asked me: “If this entrepreneur can’t even put together a well-written business plan, then how could they possibly run a successful venture?”

So, make sure your business plan doesn’t have typos and that it’s well-written. Likewise, make sure it visually looks nice. No one wants to read pages and pages of unformatted text.

2. Too Much Information

The second mistake to avoid is having your business plan be a ‘data dump.’

An example of a ‘data dump’ is adding tons of information to your business plan that is neither enticing nor easy to read. Your business plan can’t just be a bunch of information about your business. No one wants to read that. Remember, your business plan is a marketing document that markets your business to investors, lenders and/or other readers.

So, instead of, for example, providing four pages of industry research with loads of statistics, include two succinct pages of research that offer select statistics. And most importantly, focus on why these statistics support the success of your business.

Each piece of data included in your business plan should support why your business is a good opportunity for the reader.

3. Mentioning Past Achievements

The third most common mistake in your business plan is failing to discuss what your business has already accomplished.

The best indicator of future success is past success. As such, if you’re able to show that in the last months or years your business has already accomplished specific tasks and/or milestones, this helps prove you’ll be successful in the future.

So, be sure to highlight all key accomplishments your company has achieved to date.

4. Exaggerating Your Market

The fourth key mistake to avoid in your business plan is to overstate the size of your market.

Rather, get as specific as possible as to the size of your relevant or specific market.

Let’s use the healthcare market as an example. If someone says they’re competing in the $1 trillion healthcare market, that is clearly not a relevant market. Even if they say they’re competing in the multibillion-dollar medical device market, a sub-segment of the healthcare market, they are still not being targeted or relevant enough.

You must continue to pare down your market to get the relevant market, such as the stent segment of the medical device market. Then, as well as you can, determine the size of that relevant market.

5. Not Focusing on Your Customers

The fifth biggest mistake to avoid in your business plan is not focusing on customer needs.

At the end of the day, your business will succeed or fail based on whether or not you satisfy customer needs. Your customers, with their checkbooks, ultimately determine whether your business prospers or fails. So spend time focusing on who your customers are, what their needs are, and proving that what you’re offering really caters to these needs.

6. Unrealistic Financials

The sixth and final mistake to avoid in your business plan is showing outrageous or outlandish financial assumptions.

Rather, your financial assumptions in your business plan and specifically your financial model must be more realistic. For instance, if you say you expect $1 billion in revenue in your first year of operations, you will turn off any sophisticated investor.

That’s because no company in the history of the world has ever achieved such revenues so quickly. While your business may be unlike any other, you should still research other companies to understand the most likely growth scenarios such as how fast your revenues can grow, how quickly you can hire and train employees, and so on.

Most entrepreneurs haven’t created scores of business plans. Nor have most presented their business plans to experts who provided feedback. As a result, most business plans , unfortunately, exhibit one or more of the mistakes detailed above. Now that you know about them, yours won’t.

Business Plan Mistakes Infographic

Below is an infographic of this article for quick reference.

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20 Mistakes to Avoid When Starting a Business

Starting a business is challenging, but there are many areas you can focus on to help ensure your business stays afloat beyond its first year and continues to succeed. We asked several small business owners and executives to share 20 mistakes new business owners should avoid as they get their companies up and running.

20 mistakes to avoid when starting your business

According to the U.S. Bureau of Labor Statistics , more than 18% of new businesses fail during their first two years of operation, and more than 55% of all businesses don’t survive past the fifth year. So how do you successfully launch and run your startup?

We reached out to hundreds of small business owners, growth strategists, financial advisors, legal experts and business consultants to compile the 20 biggest mistakes startups make so you can avoid them when starting your own business .

1. Being afraid to fail

“The biggest mistake you can make is to be afraid of failure. Failure is key to your success, and jumping into your fear is very positive for your future business. How you pick up after failure and learn from your mistakes is the key to great success.” – Audrey Darrow, CEO, Earth Source Organics

2. Not making a business plan

“Too many businesses start without a basic plan, and if you fail to plan, you are essentially planning to fail. A startup should map out a business plan , even if it is just one page. It should include how much it costs to operate, how much they anticipate selling, who would buy their product and why.” – Deacon Hayes, founder, Well Kept Wallet

3. Being disorganized

“Being organized is key. Running a small business is like being a circus ringmaster. It’s normal to have dozens of things happening at once. So, I have a daily task list, things that I need to do, and I list them by their priority. It sounds simple, but it works and makes me far more productive.” – Tara Langdale-Schmidt, founder, VuVatech

4. Not defining your market and target audience

“A common startup mistake is not taking the time to understand the market or customers you’re building for. For technical founders, writing code can seem easier than talking to customers, but there’s no way to know if you’re on the right track unless you’re constantly getting feedback from current or prospective customers. It’s important to recognize that building a great product often doesn’t translate into a successful business. Many companies find themselves focusing on a market that’s simply too small to build a big business in.” – George Deglin, co-founder and CEO, OneSignal

5. Not filing for the proper legal structure

“The biggest mistakes startups make are not registering their business, picking the right business entity or protecting their intellectual property. These three areas are crucial to a business starting right, where, if not done properly, will cost valuable time and money to correct.” – Heather Green Miller, owner, HGM Law Office

We have guides that can walk you through choosing the best legal structure for your business and registering a business trademark .

6. Trying to do everything yourself

“A big mistake entrepreneurs make is thinking they are all alone, and they try to operate independently without surrounding themselves with wise counsel. Don’t try to run a new business by yourself. Find and onboard trustworthy seasoned advisors to discuss your business ideas, strategy, challenges and progress. Wisdom and power exist in the multiplicity of counsel. Incentivize four people to join your company as advisors in order to receive continuous feedback so that fewer mistakes will occur.” – James Zimbardi, CEO, Rent Items

7. Partnering with the wrong investors

“An important piece of advice that entrepreneurs should know before starting a business is that their investors are more than just financial backers. A company’s first set of investors will make or break it. These individuals place their confidence in the business’s potential without having a proof of concept presented to them. Once businesses have undergone their seed funding, then they’ll interact with investors who look at the business’s growth and sustainability.” – Krish Subramanian, co-founder and CEO, Chargebee

To successfully present your business idea to investors , remember you’re telling a story – you want to deliver a narrative that sets up a problem and explains how your startup will solve it.

8. Avoiding contracts

“One of the biggest mistakes a business owner/entrepreneur can make when starting a business is the failure to implement contracts. No matter how good relationships may be, they can come to a screeching halt when systems and agreements are not put in place.” – Michelle Colon-Johnson, founder, 2 Dream Productions

9. Hiring too soon

“By far, the biggest mistake a startup can make is hiring employees too soon, such as hiring full-timers when a part-timer might make more sense or hiring an employee when a subcontractor could have done the same job/function. It is very easy to run a small business with part-timers, subcontractors and the services of other professionals.” – Joseph C. Kunz Jr., CEO, Dickson Keanaghan

10. Underestimating capital requirements

“Most entrepreneurs think they can get further with less. In an effort to minimize equity dilution, they forget to factor in unknowns, challenges or delays along the way. Startup leaders tend to plan for the best-case scenario, but that almost never happens. This mentality can be attributed to leaders’ positivity and having drunk their own Kool-Aid. Positivity has its place, however, when it comes to capital; it often results in having to go back to the well for a less-than-ideal raise.” – Wayne Schepens, founder and managing director, LaunchTech Communications

11. Wasting money

“Handling money incorrectly and being irresponsible with cash flow is a death sentence for startups with limited access to capital. I’ve made the mistake of hiring too many people instead of the right people and spending money to fill the top of the funnel without having a well-defined process to manage the bottom of the funnel. Putting good money to bad use and trying to be everything to everyone instead of being niche-focused is a surefire way to waste valuable time and money, which are the lifeblood to any startup.” – Thomas Aronica, founder and CEO, Biller Genie

12. Giving yourself the wrong salary

“Paying yourself too little or too much [is a mistake]. It’s often easier to determine the salary for a new hire than determining an owner or partner’s pay. Consider paying yourself a percentage of revenue. Whatever you choose, make figuring out your pay – and that of your partners – a practice and foundation to healthy expectation of management.” – Diana Santaguida, founder, Agency Undone

13. Undervaluing your product or service

“Don’t price too high, but don’t price too low just to gain market share. If you are good, price like it! Many entrepreneurs start with the best of intentions and give things away for free or do free things for charity, community or visibility. Be very careful with this because you don’t want to be known as a source of freebies. Ring the cash register first.” – James Chittenden, founder, OneClickAdvisor

14. Launching too quickly

“One of the biggest mistakes startups make is launching before they are ready. The saying ‘Done is better than perfect’ is the right advice; however, the ‘done’ needs to ensure it can handle new clients. Once you have launched into the public and you start getting clients, ensure your systems and processes are in place – such as payment terms and process, contracts, communications – whilst still being able to maintain your marketing strategy. The back-end processes need to be watertight before you start taking on clients; if they aren’t, these are the cracks that will show and appear unprofessional.” – Gems Collins, business coach, Gems Collins LLC

15. Expanding too quickly

“When you start to see success, it can be easy to assume that growth will continue and the best way to make the most out of it is to simply copy and paste your working formula. However, if you … expand your business too rapidly, it could have dire consequences. You may find your period of growth was only temporary and end up stuck with a bunch of new staff but no work and no funds to cover them. That’s why it’s important to take a slow and steady approach to expansion and never act on a spur of good results.” – Mark Webster, co-founder, Authority Hacker

16. Not implementing a proper bookkeeping process

“Many startup founders begin without a bookkeeping process in place. Great bookkeeping habits help you make smarter business decisions, spot opportunities early on, and head off problems before they become unmanageable. Understanding your financials helps to keep a pulse on your business’s financial health. Good bookkeeping practices also ensure you’re on top of issues like tax and insurance payments that can get otherwise great businesses into trouble.” – Paola Garcia, vice president, Pursuit

17. Not creating a marketing plan

“If you have successfully validated the problem, market and idea for your startup, then you need to have a plan for how you’re going to get your first user, first 10 users, first 100 users and so on. That’s where you need a detailed marketing strategy that encompasses the initial acquisition of users, the conversion of those users into paying customers, and making those customers so happy with your product that they help you get more users (through reviews, word of mouth, referrals, etc.).” – Sam Sheppard, co-founder, Cabana

18. Hiring the wrong people

“Different skill sets and backgrounds are needed for the different positions you’ll want to fill. When you get started, make sure you have hardworking, all-around generalists who can do everything you need them to [do]. When you begin to grow, look at hiring those who are specialized for the roles that need a specialist. Don’t hire a generalist when you need someone who is specialized, and don’t hire a specialist when you could hire a generalist to do it.” – Devin Miller, founder, Miller IP Law

19. Overpromising or underlivering

“Don’t overstretch yourself in the pursuit of revenue. It is far better to tell a potential customer that you can take on their project next month, for example, rather than take on too much. Not only will this save you from failing to meet targets due to an increased workload, but it will also make you look like you’re in high demand. And that’s always good.” – Zhen Tang, chief operating officer, AILaw

20. Underestimating the demands of business

“The biggest mistake startups make is underestimating the demands of the business. Documentaries and blogs about startups are making people think optimistically; this is because the information available does not highlight the hardships of starting a business, but it glorifies the end, which is a thriving business. Because of this, people think that a startup is easy and fun, when in reality, it is quite the opposite. Startups take most of your time and money. It can even ruin relationships.” – Esther Meyer, marketing manager, GroomsShop

Creating a thorough business plan, being strategic about hiring and being financially responsible are some of the most important steps for successfully starting a business.

Why businesses fail

Companies can fail for a number of reasons. Common causes include not securing enough business financing , assembling an inexperienced management team and not implementing a marketing strategy.

The COVID-19 pandemic has been an additional challenge for new business owners. Safety measures such as face masks, hand sanitizer and plexiglass dividers for staff and customers can get costly. Furthermore, at the start of the pandemic, lockdowns led to lower spending that proved challenging for small business owners.

A 2020 study published in the journal PNAS found that 43% of small business owners temporarily closed during the early months of the pandemic. Similarly, a 2020 Federal Reserve study reported that roughly 200,000 establishments permanently closed during the first year of the pandemic.

The economic ramifications of the global health crisis are still being felt worldwide. Although certain external factors are out of your control, some matters – like sticking to an accounting checklist – are entirely in your hands.

As the U.S. continues to deal with the financial effects of the pandemic, there are strategies business owners can embrace to recession-proof their business .

Starting your business correctly

A successful startup is not built by one person alone, so surround yourself with subject matter experts and mentors you can lean on and learn from. Don’t be afraid of failure; instead, learn from your mistakes and pivot your business model as needed. Test new ideas and acquire feedback so you can tweak your product to better meet customers’ needs.

Although there are several startup mistakes you’ll want to avoid while building your business, occasional mistakes are inevitable. Don’t be too hard on yourself during the process. One of the best things you can do is take what might first seem like bad news, learn from it and put it to good use. With that mentality, business success can be right around the corner.

Shayna Waltower and Adam Uzialko contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.

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8 Business Plan Templates You Can Get for Free

8 min. read

Updated April 10, 2024

A business plan template can be an excellent tool to simplify the creation of your business plan.

The pre-set structure helps you organize ideas, covers all critical business information, and saves you time and effort on formatting.

The only issue? There are SO many free business plan templates out there.

So, which ones are actually worth using?

To help remove the guesswork, I’ve rounded up some of the best business plan templates you can access right now.

These are listed in no particular order, and each has its benefits and drawbacks.

What to look for in a business plan template

Not all business plan templates are created equal. As you weigh your options and decide which template(s) you’ll use, be sure to review them with the following criteria in mind:

Easy to edit: A template should save you time. That won’t be the case if you have to fuss around figuring out how to edit the document, or even worse, it doesn’t allow you to edit at all.
Contains the right sections: A good template should cover all essential sections of a business plan , including the executive summary, product/service description, market/competitive analysis, marketing and sales plan, operations, milestones, and financial projections.
Provides guidance: You should be able to trust that the information in a template is accurate. That means the organization or person who created the template is highly credible, known for producing useful resources, and ideally has some entrepreneurial experience.
Software compatibility: Lastly, you want any template to be compatible with the software platforms you use. More than likely, this means it’s available in Microsoft Word, Google Docs, or PDF format at a minimum.

1. Bplans — A plan with expert guidance

Preview of Bplans' free business plan template download asset.

Since you’re already on Bplans, I have to first mention the templates that we have available.

Our traditional and one-page templates were created by entrepreneurs and business owners with over 80 years of collective planning experience. We revisit and update them annually to ensure they are approachable, thorough, and aligned with our team’s evolving best practices.

The templates, available in Word, PDF, or Google Doc formats, include in-depth guidance on what to include in each section, expert tips, and links to additional resources.

Plus, we have over 550 real-world sample business plans you can use for guidance when filling out your template.

Download: Traditional lender-ready business plan template or a simple one-page plan template .

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2. SBA — Introduction to business plans

The U.S. Small Business Administration (SBA) offers two different business plan templates along with a short planning guide.

While not incredibly in-depth, it’s enough to help you understand how traditional and lean plans are structured and what information needs to be covered. The templates themselves are more like examples, providing you with a finished product to reference as you write your plan.

The key benefit of using these templates is that they were created by the SBA. While they may provide less guidance, you can be assured that the information and structure meet their expectations.

Explore: The SBA’s planning guide and free templates

3. SCORE — Planning workbook

SCORE’s template is more like a workbook. It includes exercises after each section to help you get your ideas down and turn them into a structured plan.

The market research worksheets are especially useful. They provide a clear framework for identifying your target market and analyzing competitors from multiple angles. Plus, they give you an easy way to document all the information you’re collecting.

You will likely have to remove the exercises in this template to make it investor-ready. But it can be worth it if you’re struggling to get past a blank page and want a more interactive planning method.

Download: SCORE’s business plan template

4. PandaDoc — A template with fillable forms

PandaDoc’s library offers a variety of industry-specific business plan templates that feature a modern design flair and concise instructions.

These templates are designed for sharing. They include fillable fields and sections for non-disclosure agreements, which may be necessary when sending a plan to investors.

But the real benefit is their compatibility with PandaDoc’s platform. Yes, they are free, but if you’re a PandaDoc subscriber, you’ll have far more customization options.

Out of all their templates, the standard business plan template is the most in-depth. The rest, while still useful, go a bit lighter on guidance in favor of tailoring the plan to a specific industry.

Explore: PandaDoc’s business plan template library

5. Canva — Pitch with your plan

A sample of the 696 free business plan templates available from Canva. The templates represented here are for a restaurant and two options designed around a minimalist beige aesthetic.

Canva is a great option for building a visually stunning business plan that can be used as a pitch tool. It offers a diverse array of templates built by their in-house team and the larger creative community, meaning the number of options constantly grows.

You will need to verify that the information in the template you choose matches the standard structure of a traditional business plan.

You should do this with any template, but it’s especially important with any tool that accepts community submissions. While they are likely reviewed and approved, there may still be errors.

Remember, you can only edit these templates within Canva. Luckily, you only need a free subscription, and you may just miss out on some of the visual assets being used.

To get the most value, it may be best to create a more traditional planning document and transfer that information into Canva.

Explore: Canva’s business plan gallery

6. ClickUp — The collaborative template

Preview of ClickUp's business plan template within the project management platform. It includes a number of fillable cells to help guide the creation process.

Out of all the project management tools that offer free business plan templates, ClickUp’s is the most approachable.

Rather than throwing you into all the features and expecting you to figure it out—ClickUp provides a thorough startup guide with resource links, images, and videos explaining how to write a plan using the tool.

There’s also a completed sample plan (structured like an expanded one-page plan) for you to reference and see how the more traditional document can connect to the product management features. You can set goals, target dates, leave comments, and even assign tasks to someone else on your team.

These features are limited to the ClickUp platform and will not be useful for everyone. They will likely get in the way of writing a plan you can easily share with lenders or investors.

But this is a great option if you’re looking for a template that makes internal collaboration more fluid and keeps all your information in one place.

7. Smartsheet — A wide variety of templates

A preview of the Smartsheet business plan template. It provides a preview of the cover page, directory, and small views of the remaining template pages.

I’m including Smartsheet’s library of templates on this list because of the sheer number of options they provide.

They have a simple business plan template, a one-page plan, a fill-in-the-blank template, a plan outline, a plan grading rubric, and even an Excel-built project plan. All are perfectly usable and vary in visual style, depth of instructions, and the available format.

Honestly, the only drawback (which is also the core benefit) is that the amount of templates can be overwhelming. If you’re already uncertain which plan option is right for you, the lengthy list they provide may not provide much clarity.

At the same time, it can be a great resource if you want a one-stop shop to view multiple plan types.

Explore: Smartsheet’s business plan template library

8. ReferralRock affiliate marketing business plan

Preview of the ReferralRock affiliate marketing business plan template. It just represents the cover page of the full template.

I’m adding ReferralRock’s template to this list due to its specificity.

It’s not your standard business plan template. The plan is tailored with specific sections and guidance around launching an affiliate marketing business.

Most of the template is dedicated to defining how to choose affiliates, set commissions, create legal agreements, and track performance.

So, if you plan on starting an affiliate marketing business or program, this template will provide more specific guidance. Just know that you will likely need to reference additional resources when writing the non-industry sections of your plan.

Download: ReferralRock affiliate marketing business plan template

Does it matter what business plan template you use?

The short answer is no. As long as the structure is correct, it saves you time, and it helps you write your business plan , then any template will work.

What it ultimately comes down to, is what sort of value you hope to get from the template.

Do you need more guidance?
A simple way to structure your plan?
An option that works with a specific tool?
A way to make your plan more visually interesting?

Hopefully, this list has helped you hone in on an option that meets one (or several) of these needs. Still, it may be worth downloading a few of these templates to determine the right fit.

And really, what matters most is that you spend time writing a business plan . It will help you avoid early mistakes, determine if you have a viable business, and fully consider what it will take to get up and running.

If you need additional guidance, check out our library of planning resources . We cover everything from plan formats , to how to write a business plan, and even how to use it as a management tool .

If you don’t want to waste time researching other templates, you can download our one-page or traditional business plan template and jump right into the planning process.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Kody Wirth is a content writer and SEO specialist for Palo Alto Software—the creator's of Bplans and LivePlan. He has 3+ years experience covering small business topics and runs a part-time content writing service in his spare time.

Start stronger by writing a quick business plan. Check out LivePlan

Table of Contents

Qualities of a good template
ReferralRock
Does the template matter?

6 Min. Read

Business Plan vs Business Model Canvas Explained

3 Min. Read

How Long Should a Business Plan Be?

10 Min. Read

14 Reasons Why You Need a Business Plan

5 Min. Read

Business Plan Vs Strategic Plan Vs Operational Plan—Differences Explained

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7 Tax Mistakes That Can Cost Small Business Owners Thousands

T ax season is a good time for small business owners to reflect upon their past year's business performance, and plan ahead for next year. As part of your tax planning, it's important to watch out for a few big tax mistakes. Small business owners work too hard to lose money to unnecessary taxes or bookkeeping mistakes. These tax mistakes could be separating you from too many of your hard-earned dollars -- and undermining your long-term financial wellness -- in your business and personal finances.

Let's look at a few big tax mistakes that any freelancer, solopreneur, or small business owner should aim to avoid.

Read more: we researched free tax software and put together a list of the best options here

1. Not separating your business and personal finances

Even if you're in the early days of starting a business, even if it's just a side hustle, try to separate your business income and expenses from your personal finances. Don't pay vendors from a personal checking account. Don't use business bank accounts for personal expenses.

If you do not have a clear, separate financial identity for your business and personal finances, you're making life harder for yourself. If your business and personal funds are intermingled, this makes it harder to keep track of your legitimate tax-deductible business expenses. You might forget to deduct hundreds of dollars that could've saved you money on taxes. Or worse -- you could try to deduct something that shouldn't be deducted, and end up making yourself vulnerable to an IRS audit.

2. Not tracking your business expenses

Too many small business owners get so excited about running the business that they get sloppy about bookkeeping. And there's no excuse for this anymore! There's so much great small business accounting software available now. It's easier than ever before to keep track of your deductible business expenses all year round, month after month.

And good business bookkeeping is not just about taxes or tracking expenses: it's a way to keep an eye on your business's performance. Where's your revenue coming from? Did you have a good week, month, or quarter? Who are your biggest clients, where are your biggest risks, strengths, weaknesses, and opportunities? Good bookkeeping helps you monitor the pulse of your business -- not just at tax time.

3. Not forming an LLC (or other business entity)

If you're serious about being a small business owner, and not just a hobbyist or side hustler, you should form a Limited Liability Company (LLC) or other legal business entity for your business. Make your business "official" and real in the eyes of the law by forming an LLC.

Setting up an LLC also helps you get an employer ID number (EIN) tax ID for tax purposes. It lets you open a business bank account and start to build business credit under the name of your company. Forming an LLC can also give you some other useful tax benefits -- because it gives you flexibility for how to handle your business income for tax purposes.

4. Not filing taxes as an S Corporation

If you have an LLC, and you have enough business income to be worth using this strategy, you should consider filing taxes as an S Corporation. This is a tax strategy that small business owners can use to get more advantageous tax treatment for their business income.

Instead of paying self-employment taxes on your full amount of business income like a sole proprietor or LLC would do, forming an LLC and then electing to file taxes as an S Corporation lets you pay yourself a salary, and then pay yourself a "distribution" of other business income -- but you don't have to pay self-employment taxes on that distribution amount. Like an LLC, an S Corp is a pass-through entity -- so the income also gets the federal 20% qualifying business income deduction .

Talk to an accountant for advice. Filing taxes as an S Corp might not be the right choice for every business owner or type of business.

5. Not hiring professional tax help

Speaking of accountants: you do have professional tax help, right? You're not trying to run a business and file your own taxes , are you?

Small business taxes are generally way too complicated to navigate yourself. Spend the money and get some help. It's a huge weight off your shoulders. Even if you love bookkeeping and taxes, it's beneficial to get professional tax help so you have an extra set of eyes on your tax return -- and someone you can go to for personalized advice.

6. Not getting a health savings account

If you have a high-deductible health plan (HDHP) that is eligible for a health savings account (HSA), you really should use it. Health savings accounts are versatile, powerful tax-advantaged accounts. It's like a traditional IRA, but for healthcare. For 2024, you can deduct up to $4,150 of HSA contributions (if you have single coverage) or $8,300 for family coverage. Don't make the mistake of missing out on this extra tax break -- and there are no income limits.

7. Not using a small business retirement plan

Small business owners also get an extra tax break from the IRS when saving for retirement. There are several types of tax-advantaged small business retirement plans that your company can use, depending on whether you have employees and other aspects of your business finances. Some of these plans, like a SEP IRA, can let you save more money for retirement than you could save as an employee with a 401(k).

Bottom line

Small business owners work too hard to lose money to tax mistakes. Use tax software , bookkeeping software, professional tax help, tax-advantaged accounts, and other tools to help you maximize your tax savings and build a stronger foundation for your business.

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7 Tax Mistakes That Can Cost Small Business Owners Thousands

I've traveled to 9 out of 10 countries in Southeast Asia. Here are the 5 biggest mistakes I made along the way.

I've traveled solo to nine countries in Southeast Asia.
I've made many mistakes, from traveling during monsoon season to forgetting to bring enough cash.
Travelers should make sure they plan ahead and research each country's culture.

Over the last two years, my journey as a travel enthusiast and Business Insider's travel reporter in Singapore has brought me to almost every country in Southeast Asia.

In total, there are 10 countries in Southeast Asia , and I've traveled to nine of them — Singapore, Philippines, Malaysia, Vietnam, Thailand, Indonesia, Cambodia, Laos, and Brunei. Myanmar remains the only country in the region I have not visited, and while I am keen to explore it, I have held off on visiting because of the country's ongoing civil war.

I've watched the sun rise in Angkor Wat in Cambodia and cared for elephants in Chiang Mai, Thailand. I've explored the Bornean jungle in Brunei and crawled the Cu Chi Tunnels in southern Vietnam.

But it hasn't always been easy. I've made several mistakes traveling across the region , especially as a solo traveler. Here are five mistakes I made and how to avoid them.

1. Going during monsoon season and not planning for the weather.

In July, I traveled to Thailand on a reporting trip to cover the budding cannabis industry . There, I was met with heavy rain nearly every day. In Bangkok, I was staying in a hostel in Chakkrawat , a district with narrow, meandering streets, which made it difficult to walk anywhere in the pouring rain.

I didn't plan for the weather, so I didn't have an umbrella or poncho with me and had to rush to get one at the last minute. I also had a packed itinerary with a lot of travel between meetings, which was a hassle in the constant downpour.

Before traveling to Southeast Asia, make sure to avoid two seasons — the monsoon season, which often comes with strong typhoons in countries like the Philippines, and the burning season, where farmers burn land for fertile soil. This is a common occurrence in countries like Laos, Thailand, and the island of Borneo, which is shared between Brunei, Indonesia, and Malaysia.

When I traveled to Laos in April last year during the burning season , most of my plans — including a hot air balloon ride — were canceled because of the thick smog. I also didn't have an N95 mask with me, and I ended up with a sore throat.

If you do plan to come during these seasons, make sure to pack accordingly and plan a flexible schedule.

2. Traveling during Ramadan and expecting the same practices everywhere.

Having grown up in Singapore, I'm familiar with the practices during Ramadan , the holy month for Muslims, where they fast for most of the day. I studied Malay for seven years, and in school, I often fasted with my Muslim classmates and ate only in private.

Still, in many cities in Singapore, Malaysia, and Indonesia , non-Muslims are free to dine in public, so long as they do so respectfully. But on my trip to Brunei in April — at the height of the burning season and in the middle of Ramadan — there were more practices I needed to observe.

Most restaurants were closed, and diners weren't allowed to eat there even if they were open — only take-out was allowed. Eating in public was a major faux pas even for non-Muslims, and if you want to drink some water, you can only do so when nobody is around.

It wasn't easy, especially as Brunei was sweltering at 100 degrees Fahrenheit on some days. I made do by returning to the hotel for lunch and grabbing a big dinner with the locals at the night market after they had broken their fast.

3. Not packing enough modest outfits when visiting temples and mosques.

Southeast Asia is pretty liberal, and you can wear whatever you want in many places. In popular destinations like Phuket, Thailand, and Bali, Indonesia, lots of tourists walk around in bikini tops and shorts, and locals mostly tolerate it.

But there are certain places you do need to cover up, like places of worship, which include temples and mosques. When I visited Angkor Wat — the famed temple complex in Cambodia — in February last year, I found some tourists being told off by the local tour guides for wearing shorts and tank tops — "Tomb Raider" style.

I've learned to err on the right side of caution and bring a sarong wherever I go. It's an easy way to cover up and make an outfit more modest when you need to.

4. Forgetting to pack medication, especially when I plan to eat street food.

Southeast Asia has some of the world's most flavorful food. In every country, you can find food that is cheap and delicious, and that includes Singapore , the world's most expensive city. In countries like Malaysia and Vietnam, street food dishes can cost as little as a dollar.

I eat mostly street food when I travel in Southeast Asia, so medicine for tummy-related illnesses is a must. I've only gotten sick twice from eating street food — and it was the same dish both times— and unfortunately, those were the few times I didn't have medicine with me.

I'm a pretty adventurous eater. I've eaten everything from pufferfish stew to frog porridge and dishes made with intestines off the street. I've learned to wash the utensils provided before digging in and make sure the food is cooked to order and heated up before being served.

5. Relying on my card and not bringing enough cash with me.

In Singapore, I don't really use cash and often use Apple Pay, mobile payments, and cards. But I've found that many stores in other countries in Southeast Asia only accept cash.

For example, on my third trip to Vietnam, I spent an hour trying to make payment via bank transfer after the staff at a luxury perfume shop — which was selling items priced upwards of $200 — informed me at the last minute that they didn't accept card or contactless payment.

I've also found the majority of street vendors in the region only accept mobile payment — which is limited to local banks — or cash. I've learned to change a considerable amount of money before leaving the airport and keep whatever I didn't use for my next trip.

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The most common small business mistakes.

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Starting a small business is not for the faint of heart.

Entrepreneurship has been on the upswing since the start of the pandemic. According to the U.S. Census Bureau , just under 5 million new businesses were launched between January 2021 and November 2021—an increase of 55% compared to the same period in 2019. Not only that but most of these new companies are being launched by first-time entrepreneurs. A recent survey released by Digital.com reveals that 32% of Americans planning to start a business this year have never launched one previously.

According to Digital.com’s small business expert, Dennis Consorte, now more than ever, it’s a good time to consider starting a business. “One of the drivers for The Great Resignation is that people want to feel a sense of purpose. Business ownership can give you the flexibility to pursue what matters to you in a way you believe will be most meaningful and impactful,” Consorte says. But the thought of starting a small business can be scary, especially for a newcomer.

That’s why it is critical to begin the process well-informed with a thorough understanding of the common pitfalls to steer clear of. So let's start by examining the most common small business mistakes and how to avoid them.

Casting too wide a net

Many first-time small business owners fear not having a large enough audience to market their product or service to. Instead, it is critical to define your niche or area of specialization. If you try to sell your product to everyone under the sun, it will be expensive and impossible. It’s much easier to specialize. The narrower your market, the better your chances of reaching the people you want to serve through specific channels. Do market research to identify your target market, where you can find them and how they will react to your marketing efforts. Then you can market yourself as an expert while showcasing your product or service to the narrow market that can benefit most.

Trying to do everything yourself

If you are a micromanager or a perfectionist, then take note. The greatest mistake entrepreneurs make is to believe they can do it all by themselves. Starting a business could initially mean handling many tasks on your own. But eventually, you must learn to delegate and hire people that will help you grow the business. Like anyone, you have strengths and weaknesses. As a small business owner, it is up to you to leverage your strengths and surround yourself with people who can supplement your weak areas.

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Best covid-19 travel insurance plans, being irresponsible with cash flow.

According to one report , 38% of businesses fail because they run out of cash. All companies are dependent on cash flow. But managing money is not a skill that all small business owners have. Some entrepreneurs are visionaries, while others are more focused on business growth. If you want your business to become profitable, keep your eye on the bottom line. Every dollar you spend is ultimately taken away from your profit margin. To shield your business from cash-flow issues, maintain an account balance equal to at least three to six months of operating expenses. That way, even if you experience unexpected cash flow issues, you have reserves in place to protect yourself.

Launching without a plan

It is always a good idea to start with a business plan, even an informal document. Launching a business without a plan is like setting out on a 50-mile hike in the wilderness without a GPS. Eventually, you will lose your way and may not find a way out. While some argue that business plans are unnecessary, one study found that entrepreneurs who write formal plans are 16% more likely to achieve viability than the otherwise identical non-planning entrepreneurs. According to Deacon Hayes , financial expert and founder of WellKeptWallet.com, "Too many businesses start without a basic plan, and if you fail to plan, you are essentially planning to fail. A startup should map out a business plan, even if it is just one page. It should include how much it costs to operate, how much they anticipate selling, who would buy their product and why."

Refusing to pivot

It is essential to review and refresh your business plan continually. Because at some point, you may decide to pivot your business in a new direction. Some reasons include adapting to changes in the economy, selling to the wrong target audience, or keeping up with the competition. You may also want to experiment with different pricing strategies, streamline processes or add a new product or service. Whatever the case, pivoting successfully in business is a valuable survival skill.

Starting a small business is not for the faint of heart. But it can also be one of the most rewarding journeys you can embark on. Don’t let your fears prevent you from taking that first step. Just remember to start small but dream big.

Feeling stuck and not sure it’s time to make a career shift? Download my free guide: 5 Signs It’s Time to Make a Bold Career Change!

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17 Key Business Plan Mistakes to Avoid in 2024
5. Not doing enough research. You don't need to spend endless time researching, but your business plan should demonstrate that you truly understand your industry, your target market, and your competitors. If you don't have this core knowledge, it's going to show that you're not prepared to launch your business.
11 Common Business Plan Mistakes to Avoid in 2024
When your plan is done, your company is done. Do a lean plan and keep it fresh. 3. Losing focus on cash. Most people think in terms of profits instead of cash. When you imagine a new business, you think of what it would cost to make the product, what you could sell it for, and what the profits per unit might be.
Developing A Business Plan? 11 Common Mistakes New ...
8. Analysis Paralysis. A common mistake I see is analysis paralysis. Although a business plan is important, doing is more important. Too many entrepreneurs get trapped in the preparation. Their ...
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Describe Your Services or Products. The business plan should have a section that explains the services or products that you're offering. This is the part where you can also describe how they fit ...
7 Common Business Plan Mistakes
When writing your business plan, you should avoid the following: Poor grammar and wording. Not every business person is an eloquent writer, but that's not an excuse for errors in your text. Seek the help of an editor to review the plan, especially if you struggle with grammar and verbiage. Enlist additional reviewers, such as friends, family ...
Nine Common Business Plan Mistakes To Avoid As A New Entrepreneur
4. Failing To Research The Target Market. One business plan mistake that new entrepreneurs often make is failing to research their target market properly. They may have a great product or service ...
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Crafting a business plan is a delicate balancing act. It demands a deep understanding of your market, a clear value proposition, realistic financial projections, a competent team, and the flexibility to adapt to changing circumstances. All too frequently, an entrepreneur or business owner may lean on a business plan template or outsourced ...
Common Business Plan Mistakes to Avoid
Common Business Plan Mistake #1: An Unexciting Executive Summary The executive summary is a crucial part of any business plan. It is a section that effectively summarizes your larger business plan while highlighting main findings and takeaways, as well as the recommended course of action.
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6 No feedback. A sixth common mistake in business plan writing is not seeking or incorporating feedback from others who can offer valuable insights, perspectives, and suggestions. No feedback can ...
The 7 BIGGEST Business Plan Mistakes to Avoid
Mistake #7 Non-Plan Plans. To be clear - a "business plan" discusses the specifics of starting/growing a business platform. It's not a summary of what you're about and what your personal goals mean to you. Skip that fluff for later and stick to clear business objectives, strategies, the financials, etc.
Top 10 Business Plan Mistakes
Top 10 Business Plan Mistakes When it comes to creating a business plan that attracts investors, these tips will help you get it right the first time. Share . Every business should have a business ...
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When writing a business plan, a common mistake is to underestimate the costs of running and launching the business. It is better to over-estimate costs rather than underestimating them, as this will ensure that the business is adequately covered, especially over the first couple of months. It is also recommended to:
Common Business Plan Mistakes
Not Checking Numbers. If your executive summary states you want $158,000 and your financial statements show you need $190,000, your banker will question your competence. Every number must match in every section of the business plan. Another example, if you discuss having three employees, but your cash flow shows only salary/benefits for one ...
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There are two common mistakes people make when they're tackling this section of the business plan. The first is not being realistic about their expenses. People often leave out expenses entirely or underestimate the cost of particular expenses. Meticulous research will prevent this mistake.
The Essential Guide to Writing a Successful Business Plan
Some of the most common business plan mistakes include inadequate research, insufficient financial planning, poor market analysis, neglecting the competitive landscape and unclear objectives. While it requires time and effort to create a good business plan, the results can be considerable. A business plan that is thoughtfully constructed can ...
Seven Common Business Plan Mistakes
Seven top business plan mistakes: 1. Not making one. As an entrepreneur, surely you're more excited about doing the thing you want to do that writing a plan about it. But recall the wisdom of Yogi Berra: "If you don't know where you're going, you'll end up somewhere else.".
Seven Common Business Plan Mistakes
Seven Top Business Plan Mistakes: 1. Not Making One. As an entrepreneur, surely you're more excited about doing the object you want to do than writing a plan about it. But recall the wisdom of Yogi Berra: "If you don't know where you're going, you'll end up somewhere else." Without a plan, you're likely to spend valuable time and ...
Business Plan Mistakes
Often you may hear about what a business plan consists of. While including the necessary items is very important, you also want to make sure you don't commit any of the following common business plan mistakes: 1. Putting it off. Don't wait to write a plan until you absolutely have to. Too many businesses make business plans only when they ...
Business Plan Mistakes: The 6 Biggest Mistakes to Avoid
2. Too Much Information. The second mistake to avoid is having your business plan be a 'data dump.'. An example of a 'data dump' is adding tons of information to your business plan that is neither enticing nor easy to read. Your business plan can't just be a bunch of information about your business.
The 5 Most Common Mistakes in Business Plans and How to ...
Big mistake. Your business plan isn't just for you; it's for investors, partners, and even key employees. The Fix: Know your audience and tailor your plan to them. If you're seeking investment ...
Mistakes to Avoid When Starting a Business
8. Avoiding contracts. "One of the biggest mistakes a business owner/entrepreneur can make when starting a business is the failure to implement contracts. No matter how good relationships may be ...
15 Common Mistakes When Starting a Business
Get advice on how to successfully launch and grow your business. Navigate the startup world more confidently with these insights. 1. Lack of a Solid Business Plan Starting a business without a ...
8 Business Plan Templates You Can Get for Free
The rest, while still useful, go a bit lighter on guidance in favor of tailoring the plan to a specific industry. Explore: PandaDoc's business plan template library. 5. Canva — Pitch with your plan. Canva is a great option for building a visually stunning business plan that can be used as a pitch tool.
Avoid these 7 Common Business-related Mistakes On Data Projects
This article is excerpted from the book, "Winning with Data Science: A Handbook for Business Leaders," by Howard Friedman and Akshay Swaminathan with permission from the publisher, Columbia Business School Publishing. The article covers how to avoid 7 common business-related mistakes on data projects that all stem from failures in planning, preparation and communication.
7 Tax Mistakes That Can Cost Small Business Owners Thousands
Don't use business bank accounts for personal expenses. 2. Not tracking your business expenses. Too many small business owners get so excited about running the business that they get sloppy about ...
Bad news for Biden (and all Americans): Inflation is creeping higher at
Editor's Note: A version of this story appeared in CNN Business' Nightcap newsletter. To get it in your inbox, sign up for free, here. New York CNN — There's rarely a good time for prices ...
Solo Traveler Shares 5 Biggest Mistakes Traveling in Southeast Asia
5. Relying on my card and not bringing enough cash with me. The Café Apartments in Ho Chi Minh City, Vietnam. Marielle Descalsota/Business Insider. In Singapore, I don't really use cash and often ...
Here's why the Federal Reserve is in no rush to cut rates in 2024
Key Points. Since the start of 2024, higher-than-expected inflation data triggered caution from top Federal Reserve officials. The Fed is determined not to reduce interest rates too soon, experts ...
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According to one report, 38% of businesses fail because they run out of cash. All companies are dependent on cash flow. But managing money is not a skill that all small business owners have. Some ...
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When the last total solar eclipse cut a path across America in 2017, AT&T reported network usage spikes up to 15% around certain cell towers in the path of totality. But the company, which ...