Business Plan mistakes can inevitably be made, especially when passionate entrepreneurs explain their business ideas. So, what mistakes should entrepreneurs avoid when writing a Business Plan? What to do and what not to do when writing a Business Plan? What are the Business Plan writing tips that will save entrepreneurs from making these mistakes? Let’s dive right in…
As Unusual Companies, your trusted service provider that has successfully contributed to the incorporation of many international companies in the Netherlands, we summarise what you need to know about writing a Business Plan in this blog. We list the do's and don'ts when writing a Business Plan, discuss the issue from two dimensions, and first list the common mistakes when writing a Business Plan. We will show you how to create a Business Plan that the RVO will accept.
Common mistakes to avoid when writing a Business Plan
Setting unrealistic goals
Entrepreneurs often focus too much on their business ideas, pushing them to avoid some realities. Believing in your business idea is necessary to be able to explain this idea to investors or authorities, but too much will harm your idea. Entrepreneurs need to maintain their passion for their business ideas and, at the same time, stick to realistic short-, medium- and long-term goals when making predictions such as profitability, cost calculation and sales rates.
2. Not giving due importance to market research
There is a well-known fact about the failure statistics of Startups: 9 out of 10 Startups go bankrupt. One of the prominent reasons for this situation is that the market research step is carried out quickly, and the market evaluation is not given due importance. Businesses that cannot analyse their competitors have difficulty identifying and defining their competitive advantages. Market research is a very important step to identify competitive advantages, potential risks and opportunities.
3. Leaving marketing strategies for later
Not determining marketing strategies at the beginning is one of the reasons that puts businesses in a difficult situation and reduces the credibility of Business Plans. Remember, if you cannot explain your competitive solution correctly, you will not be able to reach your target audience. A marketing plan with defined boundaries, channels, and a timetable is critical in demonstrating your confidence in your business.
4. Ignoring the financials
The passionate nature of entrepreneurs drives them to reject financial realities. You may have read stories about how many successful entrepreneurs had other business ideas that failed precisely because they ignored the financials. There is a fact that should not be forgotten: In an age when we talk about recession and economic stagnation, money makes the world go round. So does your business idea!
5. Not defining responsibilities
Partnership or professional working relationships are concepts beyond friendship. You should know well who you are starting with, share tasks well with your Co-Founder, and decide on the right responsibilities for the roles you have determined. Clearly stating all these details in your Business Plan increases all your stakeholders’ ownership of the business.
Tips to convince the RVO of your Business Plan
If you have read some of our previous blogs from our Unusual Companies library, you know that government officials expect a Business Plan from you during the application process for the Netherlands Startup Visa.
We have summarised the do's and don'ts when writing a Business Plan. This section will focus on what you must do to convince the RVO of your Business Plan.
Work diligently
Although it may seem like a small detail, details such as spelling, punctuation, grammar and style prove your professionalism, no matter your job, Dutch business authorities are very interested in how diligent an entrepreneur you are.
2. Avoid general assumptions
General assumptions about your industry, financials, competition, market and economic developments will make your Business Plan look sloppy. Make sure you have evidence for every claim you make. Use numerical evidence and clearly state how your models are validated and realistic.
3. Don't be boring, don't drown your plan in jargon
Your Business Plan can be just as exciting as your business idea! However, keep in mind that this may only apply to you. Avoid heavily using sectoral terminology in investor presentations and the Netherlands Startup Visa application process. Remember: People who will believe in your idea do not need fancy jargon, optimistic predictions, overwhelming numbers, or long and flowery sentences! It needs realistic reasons to be believable…
4. Be consistent, think comprehensively
Life is not as stable and linear as in plans. A business may have more than one dimension and more than one strategy required by these dimensions. At this point, having plans A, B and C will affect both Startup investors in the Netherlands and Dutch business authorities. It also makes you look consistent and confident.
It's easy: Just get expert support!
Are you looking to establish a company in the Netherlands or apply for the Netherlands Startup Visa and need a Business Plan? Look no further than Unusual Companies. We bring our expertise in business development, market research, marketing planning, and company establishment to assist our clients. Simply complete the form, and we'll get in touch. Let's delve into your business concept and craft your Business Plan in the necessary format. We're eager to embark on this adventure with you, positioning ourselves as your reliable service provider on your path to success.
