Perspective business owners are prone to many mistakes when starting up a new business. One very common mistake is writing a bad business plan. At times, they fill the business plan with what they think investors or banks want to see instead of what will realistically happen. Then, when the bank turns them down, they sit back and wonder why. Here are five of the most common mistakes business owners make when writing an internet business plan template and ones that you would do well to avoid.

· Dismissing losses during the early stages of the business – losses are part of starting up new business, everyone knows it, and it is expected. Concentrating the business plan on only long-term profits will bring more questions than confidence. The first year of the plan should be laid out in full detail, including expected losses. However, the business should show reasonable progress over that time, even if it means the business will continue to lose money for a short period thereafter.

· Thinking your business is totally unique – few businesses created today are not already in circulation. However, improving on an already existing concept is what can turn a loser into a winner. Trying to sell investors on a “one-of-a-kind” business will have them running for the door. Show previous models and show how your business will improve upon its weaknesses.

· Painting an unrealistic picture of yourself – while this may fool investors, it will not help the overall success of the business. It is better to actually admit your own shortcomings and show how they will be overcome. Mention hiring someone to fill a specific role because it is not your strength. Doing that will work much better than being asked a question about something you claim to be an expert on and then stammering your way through the answer.

· Being overly negative during the early years – while we do not want you to expect to turn an immediate profit, nor should you overestimate losses just to play it safe. If projections have the business making money in the second year, state exactly that. Just make sure the figures are accurate, well researched, and not over-exaggerated in either direction.

· Expect you business plan to be perfect – while we would all like to think we are perfect, there will be weaknesses to the business plan. However, this offers an opportunity to shine. This ties into not painting a picture that you are the all-knowing new business owner. Put the weaknesses out in the open, because they will be found if you don’t. Admit that you know certain areas are suspect, but present a plan to find a possible solution to the problem.

The internet poses enough of a challenge to new businesses, so don’t compound the problem by making one of these mistakes when creating your internet business plan template.

You want to start your own online business, and to begin with you must build it with limited time because of your existing job, life or family situation – sound familiar?

I was the same way – the last thing I wanted to do is use my hour each day to work on a dead-end project or worse yet, work my butt off only to put money in someone else’s pockets without putting me in a better situation.

The fact is that most unsuccessful attempts to start an online business fail because they a) Don’t follow a plan of any kind – instead taking the shotgun approach or b) Follow a faulty plan that is designed to make other people money – not you.

When I first started out online 8-years ago, we hit some dead-ends pretty fast – but in doing so found one specific online business plan that really works no matter who puts it into action.

It works mainly because YOU have a product that can be controlled and sold 100% by you – you are not relying on making someone else wealthy, but instead can leverage your product to finally achieve the time and financial freedom we all seek as entrepreneurs.

There are 10 steps to this proven online business plan, and while this may seem like a great deal of work, the fact is that you can master this entire process in as little as 6-weeks while still working away at your current job.

So here is the plan.

1. Uncover a hot desire within a target market by visiting forums, discussion groups, blogs and social networking sites that clearly indicate a niche market with an interest in a subject area. Then, pull out the biggest frustration, challenge or desire from within that market – this will tpyically be a question like “How do I keep 10-pounds off for more than 6-months” or “What investment plan should I follow given today’s highly volatile economy?”

2. Publish a blog on your topic posting daily for a few weeks to build traffic. By blogging and submitting to various blog directories as well as social networking sites you will get more traffic along with some backlink advantage from authority sites improving your search engine position over time. You are “putting up your sign” for your new online business.

3. Start building your list right away by putting an opt-in forum with a bonus download on your main page(s). List building is so important because…

a) 8 out of 10 visitors will not buy on first visit to your site

b) You can double (and often triple or more) your conversion of visitors to sales by exposing them multiple times to your sales page

c) You can survey your list for further ideas, case studies, or sell them other people’s products and make affiliate commissions

d) You’ll have an eager group of customers highly motivated to buy from you in the future

4. Create your own book, ebook, manual, course, guidebook or formula in the form of either a digital written, audio or video product OR in the form of a physical print or Audio/Video shipped on CD or DVD. Address the major desire you researched in step 1 and structure the information as your own solution system. You can see an outline on how to structure your information product business in the complimentary video: http://www.infomarketerszone.com/public/254.cfm?sd=2

5. Write your compelling sales letter by targeting specific desires within your marketplace and turning those desires into benefit statements. For each compelling question your market has explicitly asked or is thinking about you should have a solution in your infoproduct and a benefit statement on your sales page.

6. Generate traffic by using multiple techniques such as writing articles submitting them to high authority article directories, publishing to your blog on a daily basis, advertising using pay-per-click, becoming active on leading social networking sites and emphasizing your affiliate program.

7. Seek out JV partners and super affiliates. Setup your affiliate program using the capability built into Clickbank or using other affiliate tracking software – then actively seek out top affiliates within your marketplace. Make it a part of your system to seek out at least 3-4 top JV partners each month.

8. As you begin selling your products (or giving away early review copies) work with your customers to build PROOF that your information and system works. This will build momentum and result in many more ebooks being sold. The entire process of building proof around your product should be built into the original design – for example, you can’t hope to get proof if you haven’t structured your infoproduct as something that is testable or usable.

9. Monitor and improve by building in an ongoing testing and monitoring function into your business system. What is working, what is not and make adjustments. For instance, you may be getting a TON of traffic, but conversion sucks – so you make changes to your sales letter. Or, you may suffering for traffic, so work a little harder at writing more (or better) articles, blog posting, and recruiting affiliates who can flood your site with traffic. It’s a plan-do-review process that leads to top selling sites.

10. Finally, structure your communications to your subscribers and customers in a way that they guide your business toward the best opportunities. By allowing comments to blog postings, surveying your subscribers and customers, speaking with your customers 1:1 and running frequent brainstorming or coaching calls your customers will tell you exactly what they want giving you the biggest advantage of all to stay ahead of your competition.

We know this plan works, we’ve applied it to multiple markets and have coached using this system for the last 5-years and now you can apply it to your own desire for an online business plan.

Every business plan book tells you how the Executive Summary is your opportunity to provide a brief overview of your business plan; capture your readers’ attention and imagination; and, summarize the plan’s highlights and key selling points.

So, why am I telling you these 3 things when you probably already know them?

Because it’s useless advice unless you employ one, not so obvious, age old marketing technique to make these points come alive.

This one technique is the key to the ultimate success of your business plan and its ability to attract potential investors. More importantly, it will help you raise money for your business…potentially a lot of it.

Best of all, it costs nothing to “do” and can save time finding serious investors.

The not so great news is it’s rarely found in “business plan” books or on most business plan websites.

It’s one thing David Galdstone doesn’t tell you how to do in his popular “Venture Capital Handbook.”

You won’t find it in David E. Gumpert’s book, “Burn Your Business Plan.”

In fact, the Small Business Administration, Business Plan Pro, and other popular business plan web sites never mention it.

A Wall Street Favorite

This ONE marketing technique is used by the most prestigious investment bankers on Wall Street to raise millions of dollars in equity and debt financing for their clients.

It’s how major newspaper publishers trigger the public’s curiosity and sell newspapers.

So, what exactly is this powerful marketing technique that single handily can unleash the value in your business plan? It’s writing interrupting and engaging headlines.

See, I told you it was simple.

Marketers and news people have always understood how effective, well-written headlines make it easier for readers to scan for information. Through experience and testing, they’ve learned that the public reads little else when deciding whether or not they are interested. And, I’m telling you that busy investors are no different.

Why Isn’t Everybody Using It?

Good question… see, most people providing advice about business plans are lawyers and accountants. People who get marred in legalese and make their money by making things complicated. They also tend to confuse headlines with hype.

The truth is that you can use headlines to provide a more powerful overview of your business plan, capture your readers’ attention and imagination, and better summarize the plan’s highlights and key selling points — all the things they say your Executive Summary must do, without resorting to hype.

Moreover, well thought out headlines, when taken collectively, succinctly tell your business plan story. Just by scanning the headlines in your Executive Summary, your readers will be able to know exactly what your business plan is all about and whether or not it fits their investment strategy.

The success of your entire business plan may stand or fall on what is said in the headlines of the plan’s individual sections. These headlines must arouse the investor’s curiosity and self-interest.

I have seen time and again, cases where business plan writers, both professionals and do-it-yourselfers, struggle writing content for hours, for days–fixing it, polishing it, rearranging it. Yet, when it comes to headlines, they put in no thought or effort, often resorting to the same old “information-less” sub-headings used in every sample business plan or template.

So let me ask you this: What good is all the painstaking work on content if there are no headlines to first stop investors and make them want to read your plan?

How To Give Investors A Reason To Want To Read!

Absent any previous knowledge of your business venture or plan, investors have little else to spark their curiosity and self-interest. In the absence of headlines or the presence of poor ones, the best writers in the world can’t write content that will sell the venture. They haven’t a chance. Because if the headlines are poor or lacking, the business plan will not be read. And business plans that are not read do not get funded.

Before starting on possible headlines, review the content in your Executive Summary. Somewhere in this content you are likely to find the four or five key selling points of your plan on which to base your headlines — not the exact words for the headline, but the concept on which your headlines will be based. Now spend all the time you need to get the best headlines possible, then rewrite and polish your content till it flows naturally from headline to headline.

Remember, headlines decide whether or not investors stop a moment and look at your business plan, or even read a little of it. And, headlines that appeal to investors’ self-interest, give news, or arouse curiosity in this order are often the most successful headlines.

Go take a look at the Executive Summary in your business plan. Do you use headlines to capture your readers’ attention and imagination and better summarize your plan’s highlights and key selling points? If not, you’re missing a great opportunity. Go ahead, step away from crowd and write headlines that offer investors something they want. When you do, they will take time to read the content in your business plan.