Entrepreneurs are making a key mistake when attempting to attract funding – they are not writing a business plan, a new survey has found.
Business Link for London says that 68% of budding entrepreneurs across London believe they do not require a business plan to successfully obtain funding.
The survey’s authors say this means that entrepreneurs are ill prepared when it comes to financing and 80% of attempts end in failure.
However, researchers also found that 49% of business owners say they believe it is difficult to raise business funding.
Strangely, 88% of business owners think the type of business idea they have will bear no affect on their request for finance.
Also, most think that past experience is unimportant – 91% said they believe experience in industry is not an issue for investors.
David Sullivan, financial relationships manager at Business Link, said: “London is full of people just starting out in business or looking to expand.
“The problem for many is turning their idea into a realistic business plan that financial institutions will invest in.
“As the survey shows many do not know what they need to think about or where to start.”
© Crimson Business Ltd 2006
