Why Business Plans Fail To Get Investors

by on October 12, 2010

Among thousands of business plans, your business plan should be able to make an impression on investors in a distinguish way so that the investors invite you to their inaugural meetings or discussions. If your business plan fails to get the attention of the investors, all your efforts may go in vain.

The investors get the first impression of your business through your business plan. Though you have skilled managers, working staff and other physical resources, the common mistakes in your business plan might fail to catch the eyes of the investors.

If your business plan contains the below mentioned mistakes, investors would have enough reasons to reject your business plan. Therefore, study the following facts thoroughly and make your business plan more impressive and reliable.

Fail to Emphasize The Urgency of Your Product: In your business plan, you need to highlight the utility as well as the necessity of your product. If your product has a good demand and market potential, the investors tend to invest in your business. If you stress that your product or service is extremely beneficial for the customers, you would be funded by the investors.

Making Tall Claims: Most business plans illogically stress their uniqueness by using phrases such as “supreme product in the industry”, “extremely the first class product” and so on. However, the investors do not fall for these phrases. They profoundly study the effectiveness of other factors and your management strategies by keeping away those punch lines. Thus, the business plan should be precisely written by logically analyzing the facts, rather than depending highly on publicity.

No Competitors for Us: If you say that you do not have any competitors in the market and you are unique, the investors deem that you do not have a proper idea about the market system. Every product or a service has a slight or considerable competition in the market. Therefore, you need to convey that you have good plans to ensure the stability of your business amidst the high competition in the market.

Not Matching with the Market Strategies: Investors seek whether your business will be able to achieve the target revenue or not. In order to prove this, you need to analyze the distributions, sales, promotions and marketing strategies of your business. If you have a proper plan to reach the customers and make them buy the product, the investors would decide to say yes to your business plan.

The business plan is the key component, which conveys the overall structure of your business to the investors. Thus, avoid the above mentioned mistakes and make your business plan more reliable, to get the attention of the investors.

{ 1 comment… read it below or add one }

Invoice Factoring UK May 2, 2012 at 12:09 am

Yes I totally agree, the success of your business is depend upon your business plan because some business failed and bankrupt because of bad business plan.

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