Business Plan Writing Mistakes That Can Cost You Funding
Writing a business plan is one of the first steps to getting your idea off the ground — especially if you’re seeking grants, loans, or investors in Nigeria. Whether it’s for a BOI loan, Tony Elumelu Foundation grant, NIRSAL support, or an investor pitch, your business plan is the document that tells people why they should trust you with their money. In this article, we’ll show you the most common business plan writing mistakes that can cost you funding — and how to avoid them.
Many Nigerian entrepreneurs miss their chance simply because their business plans are full of errors. These mistakes may seem small, but they can be the reason your application is rejected, your idea isn’t taken seriously, or you lose a once-in-a-lifetime opportunity.
Table of Contents
- Why Your Business Plan Matters to Funders
- Writing Without a Clear Purpose or Goal
- Using Copy-and-Paste Templates Without Editing
- Overestimating Revenue and Underestimating Costs
- Not Knowing Your Market or Target Customers
- Poorly Written Executive Summary
- Ignoring Risks and Not Having a Backup Plan
- Confusing or Unrealistic Financial Projections
- Making It Too Long or Too Short
- Skipping Visuals, Charts, or Breakdown Tables
- Final Thoughts
- Need Help Starting Your Business?
- Frequently Asked Questions (FAQs)
Key Takeaways
- A poorly written business plan can make funders reject your proposal without reading far
- Overestimating profits or hiding costs makes you look dishonest or unrealistic
- Every section of your plan should connect clearly — from product to market to money
- Avoid using generic or unedited templates — your business is unique
- Financial projections must be based on facts, logic, and current market data
- Never ignore risks — funders want to know you’ve thought about possible challenges
- Keep your plan clear, focused, and properly formatted for easy reading
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Why Your Business Plan Matters to Funders
In Nigeria, many grants and funding programs are highly competitive. Your business plan is your first impression — sometimes your only chance to stand out. Funders want to see:
That you understand your business and market
That you can manage money wisely
That you’ve planned for growth, competition, and risks
That their money will be used effectively and generate returns
If your plan looks like a rushed school assignment or is filled with unrealistic numbers, you’re not likely to be taken seriously.
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Writing Without a Clear Purpose or Goal
One major mistake many applicants make is writing a plan without a defined goal. Are you writing to secure ₦5 million from a grant? Or are you trying to attract an investor?
Your business plan should answer:
What do you want?
How much do you need?
What will you do with the funds?
When do you expect returns?
If this is not clear from the beginning, the reader won’t trust your seriousness.
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Using Copy-and-Paste Templates Without Editing
There are many free business plan templates online. While they can be helpful, blindly copying and pasting from them without customizing to your idea is a huge mistake.
Funders can tell when a plan is not original. Common signs include:
Inconsistent business names across pages
Unrealistic claims that don’t match the Nigerian market
Using foreign currency and foreign market data
Your plan must reflect the reality of Nigeria — your state, your industry, your audience. Avoid foreign examples unless you’re doing international business.
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Overestimating Revenue and Underestimating Costs
Everyone wants their business to make a lot of money. But putting fake or exaggerated income figures in your plan will cost you funding.
Common red flags:
Claiming to make ₦1 million monthly from a new idea in 3 weeks
Forgetting to include delivery, marketing, or packaging costs
Ignoring taxes, salaries, or inventory turnover
Funders want realistic numbers backed by logic. Always show how you arrived at your projections — with examples, assumptions, or real-life tests.
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Not Knowing Your Market or Target Customers
If you can’t explain who your customers are, where they are, how they behave, and how you’ll reach them — then you’re not ready for funding.
Avoid general statements like:
“Everyone is my target market”
“We’ll use social media to get customers”
Instead, go deeper:
“Our target customers are students in Enugu between ages 18–25 who eat fast food 3–5 times per week. We’ll reach them through WhatsApp ads and flyers in hostels.”
This level of detail shows research and readiness.
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Poorly Written Executive Summary
Your executive summary is the first part most funders read — and sometimes, the only part. Yet many people write it last, rush through it, or write it like an essay.
The executive summary should clearly state:
What your business does
What problem it solves
Who it serves
How much funding you need
Why you’re confident in success
Write it as if that’s all the reader will see — because sometimes, that’s the case.
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Ignoring Risks and Not Having a Backup Plan
Every business has risks — from price changes and market competition to bad weather or government regulations. A good business plan must address these risks honestly.
Examples of smart risk analysis:
“Fuel price increases may affect our delivery cost. To manage this, we plan to use dispatch riders within close areas and adjust delivery zones if needed.”
Not talking about risks makes you look unprepared or naive. Funders prefer people who’ve thought ahead.
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Confusing or Unrealistic Financial Projections
Your financial plan is one of the most important parts of your business plan. Yet many people fill it with errors, wrong calculations, or unrealistic expectations.
Common issues:
Mixing up profit and revenue
Leaving out expenses like packaging, rent, or logistics
Projecting ₦100 million turnover in Year 1 without backing
Not showing monthly or quarterly breakdowns
You don’t have to be an accountant — just be clear and logical. Use simple tables and explain your numbers.
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Making It Too Long or Too Short
A business plan doesn’t need to be 50 pages — but a 2-page summary without details won’t cut it either. Many applicants lose points for making it too long (and boring) or too short (and vague).
Aim for a balanced plan, around 10–20 pages, with each section clearly outlined:
Executive Summary
Product or Service
Market Analysis
Marketing and Sales
Operations
Financials
Risk and Strategy
Don’t confuse quantity with quality.
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Skipping Visuals, Charts, or Breakdown Tables
People understand visuals faster than blocks of text. Yet many plans are just pages of writing with no tables, no charts, no formatting.
Add:
A simple table for your sales forecast
A cost breakdown (what you’ll spend the funding on)
Customer segment diagrams (optional)
Timeline of activities or milestones
These make your plan easy to scan — and show professionalism.
You don’t need to be a designer. Just make it clean and clear.
Final Thoughts
Your business plan is not just for funders — it’s your roadmap. But if you’re applying for grants, loans, or investments, how you present it can open or close doors.
Avoid shortcuts, do your homework, and make sure each section tells a story. Be honest. Be clear. And if needed, get professional help.
Your future investor or sponsor is reading — make every word count.
Need Help Starting Your Business?
At Dayo Adetiloye Business Hub, we help Nigerians like you start and grow profitable businesses — no matter your budget. From writing business plans to getting registered and finding the right business idea, we’ve got your back.
Call or WhatsApp us on +234-806-077-9290
Let’s build your dream business — together!
Frequently Asked Questions (FAQs)
1. What’s the biggest mistake people make in business plans?
Exaggerating income and hiding costs — it makes your plan look unrealistic.
2. Can I use a free template to write my business plan?
Yes, but make sure you customize it fully and reflect your local context.
3. How long should a business plan be for Nigerian grants or funding?
Around 10–20 pages is ideal. Long enough to give details, short enough to stay engaging.
4. Should I include risks in my business plan?
Yes. Funders want to know you’ve thought about challenges and how you’ll handle them.
5. How do I write good financial projections?
Base your numbers on research, cost calculations, market assumptions, or small tests.
6. Is it okay to write my plan myself?
Yes. But if you’re not confident, get help from a business consultant or mentor.
7. What should my executive summary contain?
A clear summary of your business, target market, funding need, and reason for success.
8. Do I need to add visuals and tables?
Yes. They make your plan easier to understand and more professional.
9. How do I know if my business plan is good enough?
Let someone else read it — a mentor, consultant, or business-savvy friend.
10. Can Dayo Adetiloye Business Hub help with writing my business plan?
Yes. We specialize in writing winning business plans that attract funding and grow businesses.
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