Many new business owners are daunted by the prospect of having to produce a realistic business plan.
You needn’t be.
It’s not a really difficult process – and a good business plan focuses your thoughts, as well as providing necessary back-up when you seek finance and support:
• Writing your business plan will clarify your business idea and define your long-term objectives
• Once written, your plan provides a blueprint for running the business and series of benchmarks against which to check progress
• It’s also vital to convince your bank – and possibly key customers and suppliers – that you’re worth a punt
But… you do need to keep your plan realistic.
Sales forecasts for start-up businesses are often over-optimistic. Why?
Why would you not see that offering a realistic view is likely to be much more compelling? Plus, why shoot yourself in the foot? You’ll only end up scuppered slightly further down the road…
Here are some important reality checks to help you forecast accurately.
Just questions to ask yourself – and then answer honestly!
#1. How soon can you start selling?
Will potential customers hold off for a year before they take you seriously and place an order?
#2. How often will you be able to sell?
How many days can you start selling?
How long will each lead take to line up?
What percentage of leads will turn into sales?
#3. How much will you be able to sell?
What will the average sale value be?
Will most people give repeat orders, or must you find new customers each time?
#4. How long after a sale will it be before you can collect payment?
How much income can you realistically expect each month?
That last is the big question, really.
Tempting though it can be to live in cloud cuckoo land, you’ll only pay the price later on.
Set out a realistic proposal though, and no reason not to see things come good?
What do you think?
Download our free 4-page Start-Up Briefing on Writing a business plan for all to include in your lovely new, realistic business plan. Then, let the future unfold…
Plus do join the discussion – with like-minded others – over in our Business Advice Service LinkedIn Group.