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4. Competition Analysis **************************** The analysis of competition and failure to describe a sustainable competitive advantage are killer mistakes in business and business plans. Many entrepreneurs do not make effort, or find it too difficult, to research their competitors. Entrepreneurs often say there is no competition, or underestimate strength of competitors. Their business plans do not describe a competitive advantage for company, or how to achieve a competitive advantage.
5. Mistakes and errors ************************ These appear frequently in business plans, according to VCs. Rely on more than just spell checker in your word processing software. If you aren't very good at spotting grammatical errors or incorrect spelling, hire someone to act as a copy editor.
6. Lack of Management Strengths ******************************** Management strengths were overstated in plan, with one VC even saying that entrepreneurs "lie" about their credentials. Venture capitalists always complete thorough background checks. If your management team is weak, try to assemble an advisory board that has strengths in areas your team lacks.
7. Incompleteness ********************* This includes leaving sections out of plan, or not including sufficient support data. One interesting response was that entrepreneur failed to provide name of anyone in company to contact. He or she must have been in quite a hurry to get plan in mail!
Dee Power Co-author with Brian Hill of "Attracting Capital From Angels: How Their Money and Their Experience Can Help You Build a Successful Company, published by John Wiley and "Inside Secrets To Venture Capital" published by John Wiley & Sons 2001 available in bookstores nationwide amazon.com, barnesandnoble.com, borders.com