Wondering about the assumptions for business plan that you should include in your model? The assumptions that go into your business plan can be as basic or as detailed as you desire, though it can feel like an exercise in futility to pin every single number in the pro forma to a researched figure. In brief, the best numbers to back up with vetted data are start-up costs (rent, utilities, etc.), the price points of your sales, and the expenses you think you will encounter in the first year or two of operations. Depending on your niche or industry, market data can be difficult to come by, so don't feel like it's imperative to back up every number in your forecast. In most cases, this is impossible. The assumptions that matter more are the basic ones: price points, growth rates, expenses, etc. It's also good, in investor plans, to use a valid assumption for your company's prospective P/E ratio at the time of sale. Figures on the ratios of existing public companies in your industry will provide all the background you need for this.
Another way to back up your numbers is to reference a successful business plan written for your same sector or a comparable business. If you have access to a completed plan inside your industry from a colleague or business associate, ask to review it. There may also be samples online that will help, or working models embedded in software – check around. Of course, you can always take a big shortcut and contact MasterPlans. With more than 8,000 business plans completed to date, we have working assumptions for basically every variable the business plan presents. We have a whole database full of industry average figures, typical costs, and standard P/E ratios. We can make sure your financial pro forma is as accurate as it can be. With trained financial modelers on staff as part of our in-house team in Portland, Oregon, we'll deliver for you just as we have for all of our clients dating back to 2002. Call 877-453-2011 to speak with a business plan expert.
