Top Four Mistakes When Creating a Business Plan

We have all had a dream to open and operate our own small business. According to S.C.O.R.E., a not for profit organization which counsels small businesses, there is an estimated 29.6 million small businesses currently operating in the United States.

Opening a new business and running it yourself can foster financial independence as well as strengthen your community's local economy. With concerns to their small business' success, what many owners forget to factor in is the importance of having a business plan. No matter what industry your small business operates under, it has only a 30% chance of being operational for more than two years. By incorporating a well developed business plan before you begin operation, your chances of survival greatly increase. Here is a list of the top four mistakes when creating a plan for your small business.

Number 4: Don't Knock the Power of Your Competitors

Despite what many think, investors know a thing or two about putting their money into a business that works and are well aware that if you down play the existence of competitors in your arena, then chances there may not even be a market for your service. Though you want to down-play your competitors, do so in a way that differentiates you from them, and not over shadows them. The better that you can describe your competition and the way that your business' services uses their successful ways while filling an un-touched niche, the more success you will have.

Number 3: You Talk Too Much!

In addition to having a sound financial plan for the development of your small business, you also want to create a well organized business plan in hopes that investors will take interest in your small business. When entrepreneurs are pitching their idea to a potential investor, an inexperienced business owner may predisposition to give too much information about their idea. For example, your potential investor may not need to know what pattern of carpet that you are planning to place in the employer break room. Depending on the nature of business, you do not want to exceed thirty (30) pages when creating a business plan, having the executive summary no more than three (3) of those pages. You just want to hook and bait the investor so if they are interested, they will ask for additional information. One easy way to cut down the number of pages is to count the number of points that you emphasize, and slash that number in half.

Number 2: Looking Too Much Like Your Competitors

With the number of small business in currently in operation, this copying your competitors marketing techniques and services is an easy trap to fall in to. For example, drive through your local town and count the number of fast food restaurants that you see. Ever notice that most fast food restaurants market around a "value" or "combo" meal? This may be profitable, but one way to set your self apart from the pack is to differentiate your product. Profitable fast-food chains such as Wendy's, Arby's and Taco Bell did this by incorporating a $1 menu to their already popular "combo meal" promotion.

When trying to reinvent the wheel, do your best not to simply mimic your competitors. It's best to choose slogans and concepts similar to the market at large, but still unique to your immediate marketing area. By differentiating your service from your competitors you will assist your customers in identifying your business and service as worth while with little to no confusion.

Number 1: DIY'ing (Doing It Yourself)

Many bad business plans are developed because a business owner tries to create one for themselves. You may be the best carpenter in your tri-state area, but if you have never written a business plan before, it could come out looking like you are nothing more than a novice.

If you are serious about creating a business plan which both delineates your small business' potential and goals while looking professional at the same time, you may want to invest in having a professional business plan writing service create the plan for you. Businesses like BookMark! Online (http://sites.google.com/site/bookmarkonlineinc email bkmkonline@gmail.com) has several years experience with creating quality business plans in the Greater Cincinnati area and Nationwide. BookMark! can develop a strategic business plan, conduct market research, and build financial models that will induce your business' financial growth.Not all small business with ill-prepared business plans succeed. An unprofessional plan can destroy confidence among potential investors with concerns to your small business and may even keep customers from using your services or buying your products.

You will be hard pressed to find a person who has never dreamt about owning their own business. According to S.C.O.R.E., the number of small business owners have increased steadily since the late 1970's and with the expected rebound of the economy in 2010, the rate of increase of small business owners is only expected to rise. A well organized business plan will not only further insure your small business' success, it will also give you piece of mind.