What Not To Put In Your Business Plan

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Your business plan is your roadmap to success, your guide in tough times and your sales pitch when vying for funding. Sadly, some people still don’t seem to appreciate either its vital importance or what needs to be included, or for that matter excluded when creating its content. So we’ve compiled a five point “what not to do” guide for those looking to impress with their business plan.

1 The exaggerated claim
People seem to have an inexorable need to exaggerate things to make them sound better than they really are: “Oh yes, our neighbours are as quiet as a mouse, you’d hardly even know they were there,” when you’re looking to sell your home but realise that not everyone’s as partial to Led Zeppelin as the teenager next door. “She’s a beauty, absolutely original and really reliable,” when you’re selling your car because it’s cost you more in mechanical repairs than you spent to buy it. “I’ve never felt this way before about someone”…Ok, you get the idea! Creating a business plan is all about building a document full of enthusiasm and optimism, not fantastical and outlandish claims that don’t stand up to scrutiny.

2 The personal mission
Whilst it is important that you present both passion and enthusiasm for your venture in your business plan, this is essentially a corporate tool designed to reflect the potential of your business and not a platform for achieving personal goals. Consider who will be reading your business plan: bankers, angel investors, potential business partners and so on. They will not be interested in your need for self worth or your childhood dream to become an entrepreneur. They are interested in facts, figures and potential, and so should you be.

3 The shaggy dog story
Those who might read your business plan will not appreciate finding themselves flipping through the equivalent of War and Peace keep things clear and concise. Some will only read your executive summary, but others will want to view a little more detail – notice I said “a little more detail.” Stick to the point, don’t waffle, and always consider those who might read you business plan to be busy people in a hurry to discover what they need to from your document.

4 If you don’t know, don’t guess
One of the worst things you can do in a business plan is to pretend to know something that you don’t fully understand. Readers of this document should be considered to be business savvy individuals, and as such they will be able to spot inconsistencies and inaccuracies in your business plan. After all, they would not have got to where they are today without a decent amount of knowledge and scepticism. If you are found to be less than 100 per cent truthful you will instantly loose all credibility and any chance you might have had of investment or partnership. If you don’t know something, find out about it, or ask someone to help you who does know. Your business plan needs to be watertight, consistent and wholly accurate.

5 Complete understanding is of absolute necessity.
The most common use of a business plan is as a tool to help you to gain finance for your business and its activities. In these circumstances it’s often the case that you’ll need to back your business plan up with a presentation in front of investors or business angels to win over their hearts and wallets. In this meeting you’ll need to add personality and passion to the dry facts of your business plan, you’ll need to connect with those you are presenting to, so that they believe in your ability to make the business a success. , and you’ll also need to know your business plan inside out. It will not be acceptable for you to simply say: “my accountant created those figures, so I can’t tell you how they were calculated,” or “that bit was written by our web developer so I don’t really understand the impact of SEO on our marketing strategy.” You will need to understand every aspect of your business plan and be able to prove how the facts and figures show that your venture will be a roaring success.

To summarise: When creating your business plan always think of your audience and how they would like the information presented to them. Keep it brief but brimming with proof that your venture will succeed. Don’t flower things up or write about subjects you don’t fully understand. And always know your business plan from top to bottom and side to side, in case you’re ever in a situation where your knowledge of its contents could fundamentally change the fortunes of your business.

Image © Jesus Leon