Entrepreneur: Seven common errors when writing a business plan

By Adam Toren

Compiling a formal business plan can be a daunting task for an entrepreneur.

The reality, of course, is that these documents are a necessity for any company. And, to be honest, they’re not as hard to put together as you might think. (There are plenty of good books on the subject and some really great software packages, such as Business Plan Pro.)

Still, there are some common errors entrepreneurs face when writing a business plan.

Procrastination. It’s easy to find distractions (such as your busy schedule) to prevent you from creating a plan. Resist them. And realize that without a document detailing plans for the future, your company is likely to become a rudderless ship at some point.

Financial focus. Think in terms of cash rather than profits. Initially, your profit and loss statement should be secondary to your cash flow statement. You’ll need to initially ensure you have enough cash on hand on a day-by-day basis to survive.

Cover your bases. Don’t focus too much on your grand idea, but make sure that you have all the fundamentals covered. Bold ideas are hard to sell. Rather, stress that you have the available time, common sense and business smarts to succeed. If you are looking for investors, they will be more interested in you and your people than the idea. (more)

Young Entrepreneur: The Most Common Errors When Writing A Business Plan

By Adam Toren

The thought of compiling a formal business plan can be quite daunting to the entrepreneur. Many of us see ourselves as the creative type rather than the formal intellectual and we might have an inbuilt tendency to try and fly by the “seat of our pants”. In spite of the pain, perceived or otherwise, involved in its creation, we must invest the time and effort to come up with a formal business plan. It is not as hard as you think, there are plenty of good books on the subject and some really great software packages, such as Business Plan Pro, for example.

So what are the most common errors people face when writing a business plan? Apart from the obvious - procrastination - you should always make sure that you include the necessary items. Make sure that you do devote time to creating the plan and don’t use any excuses, such as your busy schedule. You must look at the bigger picture, which includes the need to craft a formal projection of where you want to go. (more)

NYT: How to Win a Business Plan Competition

By Lora Kolodny

These days, business plan competitions yield prizes worth more than ever.

The Wharton Business Plan Competition, for example, awards $20,000 in cash and $10,000 in legal services to its top entrant. Harvard Business School’s traditional track competition awards $25,000 in cash and $25,000 in business services to its winner. M.I.T.’s Clean Energy Prize includes $200,000 in cash. And Rice University offers a whopping $225,000 prize to its first-place winner, including $125,000 in equity investment, $20,000 in cash and more than $80,000 in services.

Still, it’s really not about the money, says Cliff Holekamp, a senior lecturer in entrepreneurship at Washington University’s Olin Business School, which hosts multiple competitions, including the recently introduced Social Entrepreneurship and Innovation Competition, a do-good variation with a $150,000 prize pool. “The value of participation,” says Mr. Holekamp, “is not found in funding but in a process that brings you mentorship, support, structure and access to the resources and people that will help perfect your business model.” (more)