MGT3960 Entrepreneurship Management Fall 2015

"There's a way to do it better—find it."— Thomas Edison

Why Do Business Plans Fail?

To investors, finding a successful business plan is like trying to look for a needle in a haystack. Even if a good business plans come around, would you be willing to risk an investment just for the word “good”? Therefore, many investors look for the best, and if it is not intriguing enough for them, they are probably going to say no thanks.

Many business plans fail are due to many reasons and there are so many reasons is because these investors are looking for the best plans that will generate profit for them. As I mentioned, there are many reasons as to why business plans fail, I will just name a few I believe are important.

The proposal  you present to investors.

This proposal is pretty important, as it can either make you or break you. If your business summary is not clear, how do you expect the investors to feel?

Investors can check on status.

There is a saying, there others the same as you would like to be treated. If you lied on the proposal to get the investors to finance your business, how would you feel if someone did that to you. No one would invest in someones company if there is no trust.

Business concept not researched or validated.

Researching and making sure your business plans will succeed is a very important thing. If you cannot provide the person giving you money with a good enough reason, they might as well give the money to a stranger.

These are just a couple of broad reasons as to why many business plans fail.

 

Author: dl106040

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