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Automatic Trash Fodder Investors are seeking your mistakes, once they hit a mistake in your plan the interest is gone and so are any hopes of receiving an investment. Here are the most commonly made mistakes: Market Size Overestimation- For instance if you are in the health care field, which is a trillion dollar market, you cannot say that your market is that large.
You will have to find the percentage of the whole that is your particular niche. Competition Do not Underestimate- Practically no company is without competition so never state that you have none.
Overestimating Results- Be careful when stating your operating margin, revenues per employee and market penetration.
Find Growing Market- Unmet Needs It is imperative that you provide proof to your investors that you are operating in a business that is large and growing. There should be a compelling and clear need for whatever you have to offer.
This is the number one piece of advice according to Growthink, a business consultancy. Reference reliable sources when it comes to projected growth and size of the market. The problem is that a large market, profitable though it may be, will have a lot of competition — which is why you must have barriers to entry.
Barriers to Entry Barriers to entry are pretty much what it sounds like, anything that prevents the competition from intruding into your field. These barriers can include exclusive information, proprietary technology or a perfect management team with a proven track record.
This is the one way you can set your business apart, conclusively, if you can prove your barriers. What it boils down to is you have a business, in demand and only you can fill that need. Download your business plan template now! Cases for Example One way of increasing faith in your business is to provide example cases within your business plan.
When you find a company similar to yours that has done something successful, share their story. However, do not stop there; you also have to show how your business can do the same thing in a different huge market while holding barriers to entry at the same time. You can skip to the end and leave a response.
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Jul 18, · Using this business plan template and the information detailed herein will force you to think through your business and document it in a way that .
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