Economic factors for the business plan can be hard to wrap your arms around. If you're launching a start-up in a tough economy, how optimistic can you be in your projections? Or, as a corollary, what do you do if historical stats for an industry don't seem to do justice to the market opportunity at hand? The best way to treat the economic factors in a business plan os to be honest about the figures you have to work with, while still putting a positive face on any "known" quantities that are not as favorable. The important economic aspects are these:
• Showing a reasonable growth rate
• Keeping net profit in line
• Using competitors' data where possible
• Sticking to assumptions
• Modeling a break-even point that fits with logic and the pro forma
The market and industry analysis you use should have current stats in it wherever possible without relying too heavily on any one source, particularly if it's a weak citation or a little outdated. The business plan also requires a financial projection set that includes a use of funds table, a sales forecast and break-even analysis, the profit and loss table, a cash flow, and a balance sheet for each modeled year. Investors will demand a 5-year look and ROI calculation; bank plans require only a 3-year version. MasterPlans can write this entire plan for you in just 1-2 weeks. Call us today to learn more about the business! 877-453-2011
