While selling your idea with detailing and well-described information is a good idea, the addition of unrealistic details in the business plan might do more harm than good.
It’s good to convey the probable performance by explaining the sales forecast; however, some new entrepreneurs make the mistake of making a plan full of conjectures, which are not welcomed by creditors and investors. As a result, the entrepreneurs waste their time in revising their plans, again and again, to come up with an acceptable business plan.
Many entrepreneurs also make the mistake of focusing too much on “profits” and fail to recognize the value of cash flow. If the core purpose of a business plan is to raise funding for your business, potential lenders such as banks and investors give a significant weightage to cashflows. Cashflows give comfort about the re-payment of debt or the availability of sufficient cash to pay dividends. A poorly prepared cash flow statement can make-or-break the whole financing plan.