Develop your business plan Part 6

Filed in archive Writing a Business Plan on March 5, 2008

Here is the sixth video in the developing your business plan series which is on forecasting.

As the video states, forecasting can be the hardest part of putting your business plan together because you have to figure out what your business will do in the future. The video does a good job in breaking down how you come up with the numbers in an easy to use system.

I will add one thing to what the video discusses. Be conservative with your estimates on sales. If you estimate your sales too high, the investors you present your plan to will figure that the rest of your plan is too rosy also. However, you also don't want to estimate too low so that your business is not attractive. In other words it is a tightrope that you will have to walk in order to create a working business plan.