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7 Business Plan Mistakes Startup Founders Must Avoid

August 4, 2025

You've got the idea. The pitch. The passion.

But your business plan? It’s the make-or-break document—especially if you're applying through Canada's Start-Up Visa Program, pitching investors, or entering an accelerator.

At INWEST Ventures, we’ve reviewed hundreds of startup business plans and pitch decks from international founders. Many are full of potential—but also full of small (and big) mistakes that derail the entire process.

Here are the 7 most common business plan mistakes founders make—and how to fix them before you hit “send.”

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1. Vague Problem Definition

Mistake: “We solve X for Y” without evidence or urgency.

Fix: Clearly define:

  • Who has the problem (with data or interviews)
  • Why it matters (cost, frequency, pain)
  • What happens if it’s not solved
  • Strong business plans start with a real problem, not just an idea.

2. No Unique Value Proposition (UVP)

Mistake: Generic promises like “we are better,” “we are faster,” or “we’re the Uber of X.”

Fix: Clarify what truly makes you different:

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Proprietary tech?

Niche focus?

Price advantage?

Speed or service?

3. Overly Ambitious or Unrealistic Financials

Mistake: "$100M in Year 3" with no plan to get there.

Fix: Focus on:

Unit economics

Revenue logic (how money comes in)

Reasonable 3-year forecast with assumptions

Investors don’t need huge numbers. They need credible ones.

4. Weak Go-To-Market (GTM) Strategy

Mistake: “We’ll use social media” or “We’ll go viral.”

Fix: Outline:

  • Specific acquisition channels (ads, influencers, partnerships)
  • Sales funnel logic (awareness → conversion)
  • Budget per channel

Great ideas fail without a real plan to reach customers.

5. No Evidence of Validation

Mistake: Building before testing—zero proof that people want it.

Fix: Add:

  • Results from surveys or interviews
  • MVP tests (landing pages, waitlists)
  • Pre-sales or letters of intent

6. Ignoring Competitors

Mistake: “We have no competitors.”

Fix: Research at least 3 real competitors. Analyze:

  • Where they win
  • Where they fail
  • How you’ll differentiate

7. No Clear Revenue Model

Mistake: “We’ll figure it out later” or listing 5 revenue streams from Day 1.

Fix: Focus on one primary revenue source. Describe:

  • Pricing model
  • Payment terms
  • Why customers will pay

Treat It Like a Living Document

Your business plan isn’t static. It evolves. Update it as you test, learn, and grow. At INWEST Ventures, we treat every business plan like a strategic roadmap—not a formal document for show.

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© Copyright 2025 InWest Ventures Corp. -  All rights reserved.

Resources

Insights & NewsTerms & ConditionsPrivacy Policy

Contact

info@inwestventures.com(604) 559-8472
Vancouver, BC, Canada
© Copyright 2025 InWest Ventures Corp. -  All rights reserved.