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1. Mistakes to Avoid When Writing a Business Plan
Small Business Planning
Mistakes to
Avoid When
Writing a
Business Plan

2. Mistakes to Avoid When Writing a Business Plan
Small Business Planning
For more tips on mistakes to avoid when writing a
business plan, click here
In this article, we are going to discuss some of the
common mistakes that entrepreneurs commit when they
are drafting a business plan. Most commonly, many
entrepreneurs create this document as a piece of sales
literature rather than a thorough examination of a
business and how it will operate. It is imperative that you
go through each operating facet of your company when
you are creating this specialized business document.
Additionally, if you are using your business plan to raise
capital then you must provide an extensive amount of
information as it relates to the financial projections of the
business.
Another common mistake made when drafting is business
plan is that not enough emphasis is placed on economic
and market research. This section of your planning

3. Mistakes to Avoid When Writing a Business Plan
Small Business Planning
document should be three to five pages in length and
should include discussions relating to the general
economy, the industry in which you will operate, an
analysis regarding the demographics of your target
market, the competition that you will face as you progress
through business operations. In regards to the competitive
analysis, it is extremely important that you focus on how
you will differentiate yourself from other businesses within
the market. Very often this analysis is overlooked when an
entrepreneur is drafting a business plan.
One of the details that is often omitted within this
document is a discussion relating to how you intend to
market your business. Every business plan should have a
three page to four page analysis regarding the
methodologies that will be used in order to promote traffic
to your location or how you will generate a new customer
base. In this section of the document, you must include
information regarding how you will use newspaper

4. Mistakes to Avoid When Writing a Business Plan
Small Business Planning
advertisements, websites, radio advertisements, and other
forms of media in order to attract potential customers or
clients.
As it relates to the financial projections within your
business plan, you are going to need to have a properly
formatted profit and loss statement, cash flow analysis,
balance sheet, loan amortization schedule, break even
analysis, and a business metrics page. Your financial
model should be the centerpiece of your plan as it will
showcase to a potential banker or investor as to why you
are an excellent candidate for funding. It should also be
noted that many commercial landlords want to see a
properly prepared financial statement when they are
determining whether or not to lease a property to you. As
such, do not make the mistake of creating a financial
projection that does not contain any of the
aforementioned items. Additionally, all of your forward

5. Mistakes to Avoid When Writing a Business Plan
Small Business Planning
looking financial results should be reasonable in reflecting
the profit potential of the business.
In conclusion, it is very important that you take a
distanced approach to your writing when you are
producing your business plan. If you are able to remain
objective about the operating facets of your business then
you will find that you have created a much more
straightforward and easier to use document.
For more tips on mistakes to avoid when writing a
business plan, click here

6. Mistakes to Avoid When Writing a Business Plan
Small Business Planning
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Matthew Deutsch is a prominent business plan writer. His work has been included in nine books
pertaining to this subject. Additionally, Mr. Deutsch has written extensively on subjects
regarding entrepreneurship, small business lending, and other related topics.
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