Superficial (or lack of) research
Conducting market research is a must when crafting a successful business plan.
You need to connect your business assumptions to facts, and the only way you can do that is by doing your research properly.
If you want to create a successful business, you must never overlook this process or do it half-heartedly.
Lack of research can ultimately discredit your business concept and the whole premise of your business plan.
Make sure that you take the time to learn everything about your business and the industry you are in.
Analyze the market trends, your potential clients and their purchasing behaviours, and your competitors. You want to effectively convey in your business plan that you have a firm grasp of what you are getting into!
Not focusing on your competition
Regardless of how unique your business idea may be, you should still expect that you will have competitors, directly and indirectly.
As long as there is a need for the product or service you are offering, there will always be businesses fighting to address it.
You must know who your competitors are in the industry and never under or overestimate them in your business plan.
Underestimating your competitors will make your potential investors think that you cannot see the future risks of your business.
On the other hand, putting too much focus on your competitors will suggest that you cannot succeed.
Make sure that you concentrate on what makes you different from your competitors, and the strategies you plan to use to stay ahead of the competition.