Seven mistakes that sink business plans
Anyone who reviews business plans sees the same weaknesses again and again. All seven on this list can be fixed before submission.
Revenue without a derivation
A curve that climbs 40 percent every year convinces nobody. Work from the market. How many customers, what price, what repeat rate. Revenue follows from that, not the other way around.
Costs planned too tight
Founders plan rent and payroll but forget insurance, bookkeeping, software and downtime. A reviewer expects a buffer. Without one, the whole plan reads as too optimistic.
No liquidity plan
A profitable year can still end insolvent in March when customers pay late. For banks, the monthly view of the account matters more than the annual statement.
Vague target group
Every company in Germany is not a target group. The tighter the description, the more credible the sales channel. A plan for dental practices in one region reads stronger than one for the Mittelstand in general.
Competition talked down
No competition means no market to a reviewer. Take the strongest players seriously and explain why customers switch to you anyway. That reads more confident than an empty competitor column.
Text and numbers contradict each other
The classic. Two employees in the text, four in the payroll line. Reviewers read both parts side by side. Every contradiction costs trust the rest of the plan cannot win back.
The plan has no author profile
Chapters on market and strategy, but not a word on why you can pull this off. Experience, references and qualifications belong in the plan. Banks finance people, not documents.
Frequently asked questions
Should I write the plan myself or have it written?
Write it yourself, have it reviewed. You will defend every number in the bank meeting. An outside reader finds the weak spots before the reviewer does.
How current do the numbers have to be?
No key assumption should be older than six months. Prices, wages and interest rates move. Outdated figures raise the question of what else is stale.
What separates a business plan from a pitch deck?
The deck sells the idea in ten minutes, the plan proves it on paper. Investors often want both, banks almost always want the plan.
How do I know my plan is done?
Hand it to someone who does not know your business. If that person can explain your model and your key numbers afterwards, the plan is done. If not, clarity is missing, not pages.
