The ten year business plan is rarely requested by investors or venture capital firms reviewing projects, but it is often developed by entrepreneurs who need to show what the business performance will be outside of the standard review window for funding. Conventional thinking is that a document seeking a loan or a line of credit shows three years of projections, which an investment plan (angel or VC) gives a five-year forward-looking snapshot. But ten years? Sometimes it comes into play. So when would a document like this be appropriate? Consider the following:
• Your business is in development post-start-up for a long time before its product reaches commercial stage
• You need to show different phases of a facility coming online over 7-8 years
• You will be introducing different waves of products/services over more than 5 years
• Your investors will not consider a premature exit
• You have received a 10-year bond issue or are expected to submit audited financials for a decade post-- funding
These are just some examples, but you can see that a ten year model in the business plan is not as uncommon as it might seem at first blush. If this is what you need, remember that the rest of your plan should have an equal amount of detail. How will the market opportunity, industry metrics, or marketing platforms you use evolve over that same time period? What about your personnel needs or the likely competitive landscape? Cover as much as you can, inside the pro forma and outside of it. Want assistance? MasterPlans has made 10-year models for projects ranging from a franchise of educational centers to the rollout of a series of solar farms. We can get your plan done properly and with a reliable result. Call toll-free to learn more: (877) 453-2011.
