1. No Plan - It is easy to put  off writing a business plan until you have no choice because your banker, investor, or potential landlord requires it. Unfortunately, that is the worst time to try and write a plan.
2. No Clear Audience - Why do you need a plan? Are you writing for the banker in hopes of getting a loan, or a potential investors or simply to guide your business.  While the outline is the same, the amount of detail required in each section varies depending on the audience.
3. Too Much Detail or the Wrong Type of Detail – Can you boil down the description of your business to a simple message without getting bogged down in the details?  Limit your product description to an overview, focusing on the problem your product solves and its unique features/  Remember to leave out the jargon and industry slang.
4. Poorly Defined Customer – Everyone is not your customer. With a clear, specific definition of your target customer, it is easier to write a clear, specific plan.
5. Limited Market Research – Just because you love your product or idea, it does not mean anyone else will.    (By “anyone,” I mean anyone other than your mom, spouse, or best friend.) Who are these people, and what will make them buy?
6. Underestimating your Competitors – Everyone has a competitor. Even truly innovative products must deal with competing products or services which may or may not solve the same problem, but ultimately will compete for the end customer’s available resources.
7. No Meaningful Goals and Milestones - What will you accomplish?  Be specific.  How long will it take you and how will you measure your progress along the way?
8. Activities Not Tied to Goals – Your goals form the basis of other decisions. Use the planning process to eliminate activities which do not move you closer to your goals.
9. Unsupported Financial Projections – Unrealistic financial projects with a hockey-stick-shaped growth curve, set up a business for failure when owners spend too much too soon without enough cash reserves to help the business through the startup phase. As you develop financial projections, consider two scenarios: a best case and a worst case.
10. Inadequate Consideration of Pitfalls – Stuff happens! Things go wrong. When the worst happens, will you be prepared? Having an adequate assessment of risks is not being negative — it is being prepared.
11. Failure to Communicate - I know, I promised a list of the ten most common mistakes, (but don’t you like getting the little extra from time to time? ) While not directly a part of your document, poor communication will have a detrimental affect on your business. As you write your plan, involve others.  Seek advice from people you respect. Talk to employees, family members, business partners, and advisers, such as your accountant and lawyer.

Need help getting your plan started?  You can download a free copy of my business plan outline

Related posts:

1. Every Business Needs a Plan
2. Business Plan Outline
3. Business Planning – Your Strategy

WHAT SHOULD YOUR PLAN CONTAIN?

As you write your business plan, keep your audience in mind! If you are hoping to use this plan to solicit funds be sure to include information which will prove the value of your ideas.

• Demonstrate Market Focus. Can you clearly describe the needs of potential customers, rather than simply being infatuated with an innovative idea.

• Evidence of Customer Acceptance. Investors like to know that your new product or service is proven. Provide evidence that your product will sell or is already being used, even if only on a trial or demonstration basis.

• Believable Forecasts. Entrepreneurs are naturally optimistic when explaining the future prospects for their businesses. Are your forecasts reasonable? If you have no sales, consider including compelling research information which supports your sales forecasts.

Do you need a boost getting started? Download our free business plan outline

Related posts:

1. Business Plan Outline
2. The Business Plan and Financial Plan – Where a Startup Should Start.
3. Common Mistakes Business Owners Make

My name is Joshua Koch and I’m a Co-Founder &  the Chief Operating Officer of The Tyros, Inc. I’m going to be writing a series of blogs following my company’s journey as a start-up. The emotions that come with finding funding, assembling a solid team, and moving forward as a unit.

To any aspiring entrepreneurs out there please note that assembling a solid team is a key essential to any venture. We have the ability to lock ourselves into a room and yell and scream at each other and still walk out brothers at the end of the day.

Hurt feelings aren’t welcomed in this arena. Also assembling a team that is skilled in seperate areas and have the ability to trust others to do their part is also essential.

We have had some ups and downs in the 2 years of development and planning for this start-up. We’re nearing our time for market and look forward to introducing our web application to the intended audiences.

I look forward to having weekly installments chronicling our journey and I hope you’ll enjoy reading it as much as I will enjoy writing it.

I leave you with this: What excites you as a reader and/or fellow entrepreneur the most about developing a business from a simple idea or dream?

Joshua Koch-The Tyros

Related posts:

1. The Startup Chronicles-The Tyros, Inc Part VII
2. The Startup Chronicles – The Tyros, Inc – Part II
3. The Startup Chronicles-The Tyros, Inc-Part IV

• Don’t automatically flock to incorporating in Delaware.  Sure there might still be some advantages to doing so, but they don’t really apply to start-ups.
• In Indiana, where I practice law, the filing fees for incorporating a business are inexpensive and the process is relatively straightforward – not the case in popular states such as Delaware and Nevada.
• Attorneys in your home state, if you are using an attorney (hopefully you are), will be more familiar with your state incorporation laws.
• Your company may qualify for an intrastate securities law exemption in the event it offers securities for sale.
• There is no need to register as a foriegn entity in your home state – and added expense if you incorporate elsewhere.

As he points out, there are many other concerns that should be addressed when determining in what state you should incorporate – concerns you should address with a corporate attorney in your home state.

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• Startup: Clock Starts When You Incorporate (startupprofessionals.com)

Related posts:

1. Thinking about incorporating your business? Look no further than your home state.
2. When is the Right Time to Incorporate Your Business?
3. 6 Big Mistakes that Startups Make.