A Bad Business Plan

A good business plan can provide your

business with many benefits, including:

• Giving the business more opportunities to

obtain financing

• Offering various contingency plans

• Etc.

A business plan is labelled “bad” when it

overpromised things to the team, the

shareholders, and anyone who involved in

the operation of the business

What Makes A Bad Business Plan?

• Mistaking Tactics for Strategy

• Report Performance that Exceeds Industry

Averages

• Underestimate the Business’s Need for

Capital

Mistaking Tactics for Strategy

People often confuse

between these two terms

and think these two can

be interchangeable in

strategic planning

Strategy points out the direction and the

goals for the whole organisation, while

Tactics refer to how the organisation is

going to achieve the goals that the

strategy pointed out

Strategies are usually timeless, whilst tactics

are tech and time sensitive

Report Performance that Exceeds

Industry Averages

Those numbers might look good on the

papers, but reality is what matters most

Don’t risk your relationship with your

investors by reporting to them false

information/numbers

Underestimate the Business’s Need

for Capital

Adequate capital is needed to start up the

business, maintain its operation through

hard times, and gives it a good chance to

become a profitable enterprise

It’s essential that the business owner or

the entrepreneur must know how to do

their financial projections right and

secure a solid capital source for their

business in the long run

Questions, Comments or Clarification?

Contact: Maverick Mentoring For Business

Email: peter@maverickmentoringforbusiness.com.au

Phone: 61 3 9005 8275