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Why a business plan could be rejected
Why a business plan could be rejected
Bear in mind the following warning signs when considering starting or growing your business.
Over-gearing of the business - where the business may be carrying too much debt;
Insufficient experience of key management – where the key managers do not have the experience or skill to successfully manage and grow the business;
The business owners are not actively involved in the business;
The market for the product is clearly saturated or non-existent;
Inability to justify various assumptions in the business plan – This includes failure to demonstrate how market share will be captured;
Conflicting information between the business plan and supporting data will result in the ability of the entrepreneur being called into question;
Failure to deliver key outstanding agreements or requirements that are essential to the success of the plan, such as major contract which does not materialise;
Non-compliance (legal, statutory, tax) by existing companies that wish to expand;
A poor credit rating does not bode well.