How should a business plan talk about future services? This is a great question, because there's not just one approach. If the future services are on the cusp of rollout, they should be dissected front-and-center, in your executive summary and then in more detail in the products and services section. If they are more theoretical or might not come to pass, it's best to make a passing mention of the opportunity (generally at the end of that same section) and not model them into your projections at all. But if you rely on these future services or need to show revenue coming from them within a 3-5 year pro forma, then they're not really “future†services at all, and should be accounted for as closely as possible. In any event, be sure to tell:
• What they are/will be, even if that's tentative still
• How they fit into your existing portfolio or service suite
• When they might come online
• Whether they will encounter new threats or pit you against a fresh batch of competitors
• What the additional costs are
No matter how you plan to treat the issue of future services in your plan, bear in mind that anything you want to show revenues from needs to be modeled in. It's not sufficient to say “we may have an extra $10M in sales in Year 3 if we do XYZ,†because if a banker or investor needs to rely on this in making you an offer of capital, you have to model it. Show the sales forecast, break-even, P&L, cash flow, and balance sheet with these future additions accounted for. Need help or want to talk about it? MasterPlans is a company full of business planning experts who can get you the plan you need. Call us today, toll-free: (877) 453-2011.
