Starting a business can be an exciting and overwhelming endeavor, especially if you’ve never made a business plan before. Business plans are integral to success, but there are some things you shouldn’t include. Let’s talk about three things you should avoid putting in your business plan.
- A guaranteed return to investors. First, you do not want to add a guaranteed return to investors on the business plan. Of course, you want to do the right thing by them and try to return their investment as soon as possible, but the business world is unpredictable, and giving a guaranteed return can backfire.
- Typos. Next, you want to make sure your document is free of typos. While we are all human, having a lot of typos in your business plan document can send the wrong message to potential investors. You want them to feel excited by your business, and having too many typos can make you seem careless, which would send the opposite message.
- Specific financial projections. Finally, while it is important to be as transparent as possible with investors, you do not want to add too many specific numbers when it comes to your finances. It is hard to predict how much income your business will generate, so making those specific predictions can do more harm than good. However, you do want to include ways you plan to finance your business and what percentage you plan to allocate to marketing.
A business plan is the roadmap of your business, and it is imperative that you create one. Your business plan should contain a one-year, three-year, and five-year projection for your business, a marketing plan, and a general overview of the purpose and goals of your business. However, there are some things that you shouldn’t include. You shouldn’t include a guaranteed return to investors, typos, or specific financial projections. If you are having trouble financing your business, you should get in contact with seasoned financial experts like those at Aspen Commercial Lending.