By Gaea Honeycutt

My clients don’t consider themselves gifted writers … “My expertise lies elsewhere, there ” is something I’ve heard time and again.  Usually, dosage that expertise lies in specialty of the business itself.  And so, it was with moderate expectations that I became a judge in the 2013 Business Plan Competition at the Women’s Business Center of Northern Virginia.

The contestants’ writing wasn’t “bad” so much as disorganized.  It’s easy to take experience and habits for granted when running a business.  To be sure, the plans ran the gambit in quality and thoroughness, but some common mistakes stood out.

Unproven Assumptions

Key to writing an effective business plan is backing up statements.  Anecdotes and beliefs do not comfort loan officers; hard facts do.  It’s not enough to state, “The target market loves Product A – particularly young men aged 15–21.”  How do you know?  Did you dig that out of a research study?

What is it about the lifestyles, needs and purchasing habits of that demographic that tells you consumers will demand Product A?  Do 15–21 year old males purchase similar products?  What social or cultural trends point to the potential of Product A’s success?  A trip to the local library reference desk and some market research on the Internet can fill in the gaps and shore up your business plan.

Lack of Structure

A great idea that can earn a profit is wasted if the plan for success is jumbled.  This is not the time for stream of consciousness.  Overly repetitive narrative and incomplete information can torpedo your plan and your success.  It’s up to you to craft a persuasive presentation.  Keep like items together and make it clear which strategies support which goals.  For example, put marketing, PR and social media together.  If you think of something related while writing the product description, stop, go back and put it in marketing.  It’s as simple as that.  Don’t make the reader search through your plan to understand your business, objectives, strategies and anticipated outcomes.

Failure to Demonstrate an Understanding of the Industry

While reading the plans, I spotted two ways entrepreneurs failed to show an understanding of the industry:  1) incomplete market research, and 2) implied expertise. Market research was covered earlier.  Simply put, understand your product’s/service’s benefits and appeal, understand your target audience, and understand the industry and your product’s/service’s place in it.

So, let’s address implied expertise.  Bringing 20 years experience to your business generally inspires confidence.  That can serve as proxy for understanding how to make the product or perform the service well.  But that doesn’t mean you know how to develop a network and keep a sales pipeline moving.  Or, that you have a handle on the financials.  Nor does it mean you understand strategic positioning within your industry.  Hundreds of people with your background are competing for clients and financing.  What makes you different and how are you going to ensure your business will last?  Don’t smooth over this, and don’t get lulled into thinking you have it made because you already have clients.  Today’s contacts are tomorrow’s retirees.

As the saying goes, “Failing to plan is planning to fail.”  Don’t shortchange yourself.  Put the same kind of energy into planning that you put into products and services.  It will not only keep you focused, but also ensure that you understand how to forge a path to success.