Why Business Plan Fails?

The business plans fail because of the following factors:

1. The plan is constructed around strategies that are defined inaccurately.
2. The plan, while substantial, cannot be described clearly by management.
3. The plan lacks detailed information about job responsibilities and operating schedules.
4. The plan does not state goals and objectives lucidly and in professional terms.
5. The plan is incomplete.

Table 3.6 suggests some do’s and don’ts when writing business plans.

Table 3.6: Business Plan Do’s and Don’ts

Business Plan Segment	Do’s	Don’ts
Executive Summary	Get right to the point	Write more than a page and a half.
Management	Play up your previous successes.	Paper over the gaps in your team.
Marketing	Send a product sample, if you can.	Under price your services because you failed to get good market data.
Financials	Run cash flow models at different growth rates.	Inflate or understate your margins.
Overall	Have a friend proofread your plan	Forget to use feedback

Source: Prince, C. J. (2000). The ultimate business plan. Success, 44-49.