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Mistakes startup entrepreneurs do while writing Business plan
Giving more importance to market penetration or customer acquisition as main reason for burning money or incentivizing customers, these are good but understand a company has to run on old economics model in creating value to investors and also ensuring bottom line is taken care. Just having top line model in creating traction should not be the only aspect.
Giving sales forecast based on yes it can happen, the attitude is right but understand what happens if the sales forecast doesn’t happen, the logic many entrepreneurs use is in this country of 1.2billion population even if 100 people buy my company will become cash flow positive.
Depending on if I get media and advertising budget I can also become a big company understand that media and advertising can only create awareness and also too much of advertising goes in wastage of funds. So building funds requirement based purely on advertising and projecting to investor if I get funds 70% of budget will go to advertising. Remember many companies, which spend funds on advertising, have also closed down.
Asking for too much in terms of capital expenditure, where in having swanky offices and then having good interiors, understand simple aspect a startup success is majorly on the concept and implementation at right time with maximizing the reach with minimizing cost.
Having own salary too high gives indication to investor that you are more interested in having your salary rather than building company yes you need salary but asking for higher salary does not make sense.
Valuating company to abnormal valuations even if 100 Rupees is the revenue then no point in valuating at 10000 rupees, as these valuations if accepted by investor is what becomes reality