Many business owners think that a business plan is not important in building a business.

In fact, a business plan is not only something that must be prepared when applying for a loan to the bank for additional business capital, but also as a guide to achieve business goals.

Therefore, it is very important for business people to do research and prepare a business plan. In this case, it requires careful calculation and research so that the planned business can be run properly.

However, there are still many business people who make a number of mistakes in making a business plan. What are they? So that you don't repeat the same thing, check out some of the mistakes that should be avoided in making a business plan below.

Business Plan at a Glance
According to Hisrich and Peters (1995), a business plan is a printed document created by a businessman by describing or taking into account external and internal elements in starting a new business.

A business plan concerns how business management consists of four important aspects, namely organisational and management aspects, marketing aspects, technical production aspects, and financial aspects.

These four aspects apply not only to large corporations, but also to small businesses.

Daniel LaBossière, Assistant Vice President of Business Development at BDC, says that a business plan is an invaluable management tool that helps businesses set clear goals for their company and explain exactly how they will achieve them.

With that said, it is very likely that a business plan is not a one-off. One of the reasons is because a business plan must be revisited frequently.

Not only for the business owners themselves, the business plan must also be made clearly and easily understood by other people involved in the business, such as employees, business partners, and investors.

Mistakes to Avoid in Making a Business Plan
As explained, a business plan is a fundamental thing that every business must have before starting operations.

Actually, there is no wrong or right way to make a business plan. There are many elements that can make a business plan successful, one of which is by avoiding mistakes that make the business plan unviable.

Here are some mistakes that should be avoided in making a business plan reported from several sources:

Business Plan Not Written
The first mistake is a very simple mistake, which is that the business plan is not written.

Even though a business plan is a map that directs the business to success, if the map is not written then how can you understand it? It will definitely be difficult.

In addition, by writing a clear business plan, business people will easily get funding from investors or when applying for capital loans.

Ideas Can Be Creative But They Must Also Be Realistic
Having a creative idea is good, but sometimes prospective business people often ignore realistic factors in business which makes one of the mistakes that often occur in business plans.

Business ideas must also take into account several factors, for example, regional and cultural. Whether the culture in the market location accepts the product to be sold or not.

In addition, the idea must also pay attention to the behaviour of potential customers. For example, selling products that are not really needed by the community.

Unrealistic Financial Projections
One of the most common mistakes in making a business plan is when businesses project unrealistic finances.

When it comes to attracting investors or lending institutions, they expect businesses to provide a realistic picture of how the business starts and its journey.

Therefore, if the plan is too 'exaggerated' without providing an explanation of realistic financial projections, it is likely that investors and lending institutions will reject your business plan.