A business plan can have the ability to make or break a start-up company, especially in its infant stages. While an effectively written plan can attract investors and be the roadmap to success, a poorly written plan can scare off potential lenders and investors
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5 things not to include in your startup business plan
1. 5 Things NOT To Include In Your Startup Business Plan
A business plan can have the ability to make or break a start-up company, especially in its infant
stages. While an effectively written plan can attract investors and be the roadmap to success, a
poorly written plan can scare off potential lenders and investors. There is, of course, no magic
recipe for a business plan , but there are certain elements that all effective business plans
share, and other elements that could sabotage your start-up. Read on to find out what NOT to
include in your business plan, and how you can cut through the jargon and deliver a business
plan that is clear, concise, and sure to impress.
1. Vague or Irrelevant Information
Anyone reading your business plan probably does not have time to sift through ambiguous,
sweeping statements in order to find your key points. They will want specific facts and figures
about prices, strategies, solutions, and other elements of your company. Irrelevant information
will only exhaust your reader, so leave out anything that might be perceived as fluffy or
meaningless.
2. "Game-Changing Technology"
Every company likes to think that their product is game-changing, but saying this in your
business plan sounds boastful, and it's an empty promise because it's difficult to guarantee such
a thing. Even if you believe your product is going to change the world, don't state that outright
in your business plan. Instead, focus on more concrete things, like a comprehensive description
of your product and its many benefits.
3. Inaccurate Figures
For your financial projections, be conservative in your estimation of revenue. Don't
underestimate your expenses; it would be problematic if you received funding and then ran out.
Moreover, if you miscalculate your costs, lenders are unlikely to lend you more money. So
project the maximum expenses you might pay, and then add some extra cushioning to account
for the possibility of unforeseen circumstances.
4. Clichés
Overused terms like "win-win," "low-hanging fruit," and "end-to-end" are unclear and
2. misleading and do not necessarily convey a clear picture of your company and its goals. Leave
out the fancy-sounding lingo and catchphrases, and just stick to plain and proper English.
Remember that your reader has no knowledge of your business, and jargon won't help him or
her understand your plan.
5. Spelling or Grammatical Errors
This one seems like a no-brainer, but you might be surprised. Such errors point to a lack of
professionalism and detail orientation, and they will reflect poorly upon you and your business.
Be meticulous and always proofread.