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Business plan clichés that cost you funding (February 5, 2025)

Business plan clichés that cost you funding (February 5, 2025)

Dave Lavinsky
February 05, 2025

Here’s what we will cover today:

Phrases that instantly turn off recruiters and investors
Create a business plan that wows investors (with AI!)
Should you always follow “The Customer Is Always Right”? Maybe not.

Quote of the Day

“Organizations and governments around the world have a digital transformation imperative like never before, and many of them are accelerating their plans for a digital-first work-from-anywhere environment.”
~ Marc Benioff

Today’s Tip

A while back I started reading a lot of articles on resume writing.

No, I’m not looking for a new job.

But, I realized the similarities between resumes and business plans.

A resume is used to convince a prospective employer that you might be the right job candidate and that they should meet with you to learn more.

Similarly, a business plan is used to convince an investor or lender that you might be the right funding candidate and that they should meet with you to learn more.

(Note that there is a key difference between resumes and business plans. Mainly your business plan also has critical value in terms of plotting your strategy. But when used to convince outsiders (investors, advisors, partners, employees, etc.) to join or fund the company, plans and resumes serve a similar marketing function.)

Interestingly, I once read an article revealing the “10 Boilerplate Phrases that Kill Your Resume.” They are as follows:

Results-oriented professional
Cross-functional teams
More than [x] years of progressively responsible experience
Superior (or excellent) communication skills
Strong work ethic
Met or exceeded expectations
Proven track record of success
Works well with all levels of staff
Team player
Bottom-line orientation

Moving back to business plans, I have often heard investors and lenders complaining about similar phrases in plans such as “proven management team,” “first mover advantage,” and “dominate competition.”

The problem with these generic phrases in both resumes and business plans is that, by themselves, these phrases don’t show whether the person or venture is really unique (which is what both employers and investors/lenders want).

Now I’m not saying that you need to avoid these phrases.

Rather, you need to clarify these phrases.

If you have a “proven management team,” you need to explain why. For example, maybe one team member formerly ran a successful company, another increased sales by threefold at their last company, etc.

When presented to people outside yourself or your company, your resume or business plans are marketing documents. They are used to convince others to invest time towards hopefully hiring you or investing in your company. To be successful, be sure to show how you and/or your venture are unique, and whenever possible, provide specific proof behind your arguments.

Today’s Resource

Get the Business Plan Investors Love

Most business plans fail to impress. Why? They miss the key elements that investors and lenders need.

With PlanPros.ai, you’ll create a business plan that turns heads.

Just answer some simple questions, and our AI-powered tool crafts customized financial projections, writes your entire plan in the format investors crave, and includes the best business-building strategies.

And here’s the kicker: You’ll also get access to our database of 80,000 equity and debt investors.

Your plan will get the attention it deserves. Let’s make it happen.

Trivia

Today’s Question: What numerical chapter of bankruptcy under the U.S. bankruptcy code allows a company to reorganize?

Previous Question: Which eyewear startup founded in 2010 began with an online-only business model and promised to donate one pair of glasses for every pair purchased?

Previous Answer: Warby Parker

Warby Parker is a brand- and customer-centric online retailer for stylish and cheap eyewear. The customer buys one pair of glasses and donates another to someone in need via VisionSpring.

News

Stop Blindly Following 'the Customer Is Always Right' — Here's What to Do Instead For the Sake of Your Employees