Select One of the Following "Business Plan Mistakes" and Discuss

question 138

Essay

Select one of the following "business plan mistakes" and discuss three techniques that may help avoid this potentially fatal error.
1. Failure to explain the business opportunity clearly
2. Trying to be everything to everybody
3. Falling into the trap of capturing one percent of the market
4. Unrealistic projections
5. Forgetting the importance of cash flow
6. Overly simplistic assumptions
7. Weak competitor analysis
8. Failure to describe the company's competitive advantage
9. Counting on a low-price strategy for success
10. A sloppy plan that contains errors
11. Exaggerating the qualifications of the management team
12. A plan that is incomplete

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Definitions:

Finished Manufactured Product

Items that have completed the manufacturing process and are ready for sale.

Conversion Cost

Costs incurred during the transformation of raw materials into finished goods, specifically focusing on direct labor and manufacturing overhead expenses.

Direct Materials

Direct materials refer to the raw materials and components that are directly used in the manufacturing of a product, often considered a variable cost.

Period Costs

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative costs.