Why was my Business Plan Rejected?
From Entrepedia: The Entrepreneurship Wiki
The following list, though not exhaustive, offers some of the reasons why business plans are not accepted, or why additional interviews are sometimes required. It must be stressed that, in most cases, this is due to a combination of factors.
Rejection of Business Plans
- Unrealistic, overoptimistic level of turnover in the first few months
- Failure to account for seasonality
- Not all months have the same turnover
- No explanation of turnover figures
- E.g. Details of jobs and charges not provided
- Turnover quite beyond the capability of the owner in terms of time available
- Lack of market research
- Unrealistic expectations of regarding payment
- Only where industrial customers are involved
- Expenses are the same for each month, or payments are not made according to terms of trade
- Every line in cash flow statement should be explained
- Serious omissions in financial projections, which would materially affect the success of the business
- Excessive drawings in relation to volume of business
- Purchase of assets at such a low price as to indicate trouble
- Only where assets are essential to conduct of business
- In retail, failure to allow for sufficient stock in projections
- Failure to establish a sound business by the time Enterprise Allowance has come to an end
- The business must provide the basic survival budget
- Applicant proposes to start a business for which he is not technically competent
- Applicant has too many other commitments to devote time to business
