Mistakes to Avoid When Writing a Business Plan While it is crucial to have a business plan in place, there are common mistakes to avoid that can render your plan less than effective. For instance: 1. Procrastination – Write your plan NOW; don’t wait until you are forced to do so. Small business owners often wait until the bank or investors want to see their plan before they develop one. 2. Casual attitude about cash flow - Understanding cash flow is critical to the success of your business. It is more important than sales, profits or anything else in your business plan. 3. Fear of developing a plan – It is not as hard as you think. There are books and software available that will guide you step by step or if hire a consultant to do the job for you especially if your business is larger or growing rapidly. 4. Vague goals – Leave out vague business jargon (such as “the best in our industry”); they are recognized for what they are – hype. Be specific: include dates, management responsibilities, milestones, budgets etc. 5. Cookie-cutter business plan – Tailor your business plan to its actual purpose. 6. Erroneous prioritizing - Don’t dilute your priorities by listing 20 items. A priority list with 3 – 5 items is focused. Remember: The more items on the list, the less the importance of each. 7. Unrealistic growth projections – Present conservative projections.