Financial projections in business plans are the most important and difficult to maintain, because of the uncertainty associated with them. Identify the risk factors while preparing the business plan so that contingency plans can be formulated to avert a crisis. The business investors want to quickly gain the return on the investment, without being deceived [...]

If your company is at a point in its history and experiencing solid growth where you are considering looking for outside investors for your capital needs, then you want to know if your business will be or can be attractive to investors. If you plan to search for equity investors, you should know that they will expect a significant return on their investment (20% to 50% is not uncommon) and many times within 5 years. These investors will look carefully at the candidate company to characteristics that include, but are not limited to: a solid and proven management team; potential company growth; solid business plan; and evidence of strategic thinking and planning in a strategic plan with vision, mission core values and short term & long term goals.

Business plan financial projections seem daunting because they are so uncertain. This very uncertainty, however, is what makes preparing them easy because you cant possibly be right but…you can learn to be competent.

It is a never to be compromised law that Success in business comes as a result of planning. Your ability to develop a well written business plan is going to be a major factor that will affect the survival of your business. Since your success in business is directly proportional to how in depth your [...]