By Dee Power

Don't Tell People You Have Little or No Competition in Your Business Plan


This is a Fatal Flaw seen in many business plans. Everyone likes to think that their product or service is so unique that no one else can successfully compete against it. In rare instances, a new technology may come on stream that truly is a new and better solution to a problem, but even then the advantage may be only temporary before other people offering similar technology enter the market. In reality, every type of product or service faces competition of some kind, because you still have to convince someone to purchase from you rather than spend the money on something else. And if you really believe you have no competition, how do you know there's a market for your product?

Perhaps no one is offering it because no one wants to buy it. Perhaps others have tried and failed.

Investors reading a Business Plan in which the company states it has no competition, usually conclude the management group has not adequately researched the competition, and may be seriously underestimating the strength of competitors.

How Do You Know When Your Business Plan is Done?


I've seen various methods employed to determine when the Business Plan is actually finished. Sometimes people weigh their plan as they go, and when they reach 2 pounds of paper they stop. Some people drop the document on the floor and see if it makes an authoritative sound. Others write until they reach 50 pages, because, by golly, that's what the nifty book on Business Planning said was the right length of the plan. Some entrepreneurs just keep writing forever, and don't ever actually finish. After all, if you never finish, you never have to worry about the investor turning you down. Fear of presentation--and rejection-- begins to set in, a completely natural human reaction. Once you recognize your fear, you can deal with it.

We might suggest this method:


Take the business plan "Off Broadway" and wait for the reviews to come in.
Have some people whose business knowledge you trust, read the plan and ask them: Would you invest in this company, based on the information in the plan? If not, what questions do you have about the business that we did not adequately answer?

You are so close to the plan that you will have a difficult time deciding whether it is ready to send out. Two problems occur: spending time making needless revisions when the plan is finished, or not recognizing shortcomings or omissions you may have made, or things that are unclear.


Do you know what should be included in your business plan? Receive a complimentary business plan template. Just go to Business Plan Template

About The Authors
Dee Power is the co-author of several nonfiction books including Business Plan Basics "58 Ways to Find Money for Your Business, ” Inside Secrets to Venture Capital" and “Attracting Capital From Angels,”
Reach them through The Capital Connection

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