Common Business Plan Mistakes

What is the most common mistake entrepreneurs make when completing their business plan? was asked of venture capitalists.

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By far the most frequently mentioned mistake was saying that the

company had no competition, or underestimating the strength of competitors (32%). The failure to describe a sustainable competitive advantage was also mentioned by 9%.

Not clearly explaining the opportunity was the next most frequently mentioned mistake, by 27%.

Following that was the related mistake of having a disorganized, unfocused, or even poor presentation (12%).

Miscalculation of market share and market size (9%) were also regarded as frequently seen mistakes, with several respondents saying that they still receive business plans that say, "The total market is $1 billion, if we only get 10% of it, we will be a $100 million company"--without ever explaining how they are going to sell $100 million worth of their product.