Top Reasons Why Your Business Plan Did Not Work Out

Investors often think twice before funding start-ups, so your business plan has to be exceptional to impress them. But if your pitch deck fails to get the much-needed funding from investors, there must be something wrong with your business plan. Here are the reasons why a business plan might fail to get the investors' attention:

Unrealistic Assumptions

It's good to be optimistic about your businesses' future and present it to investors. But, you should be realistic as that's what makes investors genuinely see the potential of your business and fund for it. Financial projections and cash flow statements should be presented accurately to get funded.

Explaining sales forecasts without complete information can be a red flag for investors. You need to focus more on cash flows and not just profits while presenting your business plan.

Using Business Plan Templates
If you've used ready-made templates for your business plan, that can be another significant reason for your plan to fail. Templates are great if you're doing a quick presentation for a business meeting but not your business plan. You need to customize it according to your business, and even though online templates let you customize, it will not be done entirely by you from scratch anyway.

A thoroughly laid out business plan can take time to prepare, but it will all be worth it in the end. Take time or take the help of consultancies that can customize it without using any templates.

No competition
It's great that you have a business idea, but there's no business without a competitor in the market. If you mention that your business is new and has no competition to investors, they will not buy it. You need to go out there and look for companies doing what you're doing.

Of course, it will not be the same, but you will have direct and indirect competitors. So, please do your research well before putting anything in your business plan and presenting it to the investors.

Final Thoughts
Business plans are crucial to get that "YES" from investors as that's what determines your initial success. It's essential to craft a business plan from scratch so that your idea is well-thought-out on paper and presented.

These are some of the most common reasons why a business plan fails and if you're still unsure why it failed, here are more reasons other than the ones mentioned above to check out. More details visit https://www.maroofhs.com/post/business-plan-writing-for-lenders-and-investors/

Comments

Post a Comment

Popular posts from this blog

Canada: The New and Trending R&D Hub in the World

Image
 Not sure where to set up your research centre? Canada might be your go-to. For a while, Silicon Valley in the United States has been a Research and Development hub in the World. But, it may no more be the same. Bloomberg's September 2020 report emphasizes the problems with R&D incentives in the States and why businesses are moving their R&D centres to Canada. But why are foreign businesses setting up their R&D centres in Canada? Canada offers generous R&D Tax Incentives. As a young entrepreneur, setting up a business is no easy feat, but if it's in Canada, you're in for plenty of benefits. By international standards, Canada provides the most attractive R&D treatment. Though the U.S. is one of the top tech hubs since the tax systems are not so generous as that of Canada, there is a drastic shift and a new trend in the way businesses are setting up their R&D centres. Factors such as high business taxes, corporate culture, cost of living, and vari...
Read more

Top Things to know Before Moving to Canada

Image
Canada is a top immigration destination for people across the world; both from developing and developed countries. There are many positive sides to immigrating to Canada. One of the areas where all the new immigrants dread while coming to Canada is “Income Taxes”! Yes, individual income taxes or personal income taxes, are extremely high in Canada as compared to the neighbouring United States. This is even higher for those coming from the middle eastern countries with no income taxes at all. So if you are moving from a country where there are no income taxes such as the United Arab Emirates or other gulf countries, you must prepare yourself to start paying income taxes. You can take a couple of steps before immigrating to Canada such as: 1. Establish your date of change of residency. Tax residency and immigration residency are two different things. 2. Try to realize Capital gains before the date of immigration. If not, arrange for the fair market value of all of your assets as of...
Read more

Do I Need to Report Foreign Rental Income in Canada?

Image
Are you confused about Canadian Income Tax Rules? Should you be reporting your foreign rental income in Canada? Well, let us find out. Regarding reporting rental income for Canadian income tax purposes, foreign and domestic rental income are regarded equally. A Canadian taxpayer must therefore reveal all of their worldwide income. What if the cost of foreign properties is more than $100,000 CAD? Then you must fill out the T1135 form, which is also known as the foreign income verification statement. Continue reading to learn more.     How to Report Foreign Rental Income? • To report your foreign rental income while filing income tax returns in Canada, fill out the T776 Form, also known as the Statement of Real Estate Rentals. • Keep in mind that your international rental income must be reported in Canadian dollars • To avoid double taxation, income taxes paid to the foreign jurisdiction on rental income can be claimed as a foreign tax credit on the taxpayer's Canadian incom...
Read more