Avoiding Business Plan Flaws and Securing Financing for Small Business Ventures
Learn how to identify and avoid common flaws in business plans that hinder growth, along with gaining insights into securing financing for small business ventures. Explore fatal flaws, features that deter investors, and the lender's perspective in this comprehensive guide.
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Presentation Transcript
PowerPoint Presentations for Small Business Management: Launching and Growing New Ventures, Fifth Canadian Edition
CHAPTER 5 focus on Fatal Flaws - 5-2
COMMON BUSINESS PLAN FLAWS 1. Overly optimistic financial projections, inadequate competitive analysis and/or weak environmental assessments 2. Vague marketing strategies 3. Lack of research 4. Unprofessional presentation 5. Hazy timelines, vague risk assessment LO 2 5-3
FEATURES OF THE PLAN THAT REPEL INVESTORS Show an infatuation with product or service and downplay market needs or acceptance Based on financial projections at odds with accepted industry norms Unrealistic growth projections Contain a need for custom or applications engineering, which makes substantial growth difficult LO 2 5-4
THE LENDERS PERSPECTIVE 5 Cs of Credit 1. Collateral assets to put toward credit 2. Capacity strength of cash flow 3. Capital personal investment in business 4. Conditions industry risk and conditions 5. Character competence and credit history LO 2 5-5
