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  • Will You Add? - Business Plans - The Rules of Forecasting, Part 1 of 2

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    therefore, the numbers are not defendable. This is most often demonstrated by not showing the details (if any) that
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    We have developed a set of rules regarding forecasting that we apply in writing business plans. We share them with you in this article in the hope that you will find these rules worthy of adopting in your efforts to write business plans as well.

    Investors expect the forecasts in a business plan to present realistic, achievable goals. One of the best ways to have your plan rejected is to demonstrate that projections were not prepared thoughtfully and, therefore, the numbers are not defendable. This is most often demonstrated by not showing the details (if any) that
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    ou in this article in the hope that you will find these rules worthy of adopting in your efforts to write business plans as well.

    Investors expect the forecasts in a business plan to present realistic, achievable goals. One of the best ways to have your plan rejected is to demonstrate that projections were not prepared thoughtfully and, therefore, the numbers are not defendable. This is most often demonstrated by not showing the details (if any) that
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    Investors expect the forecasts in a business plan to present realistic, achievable goals. One of the best ways to have your plan rejected is to demonstrate that projections were not prepared thoughtfully and, therefore, the numbers are not defendable. This is most often demonstrated by not showing the details (if any) that
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    e of the best ways to have your plan rejected is to demonstrate that projections were not prepared thoughtfully and, therefore, the numbers are not defendable. This is most often demonstrated by not showing the details (if any) that
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    therefore, the numbers are not defendable. This is most often demonstrated by not showing the details (if any) that went into the projections.

    It is important to remember that investors typically review the projections first, at least in a cursory manner. This makes sense when you realize two things: 1) they are most interested in the money they might be able to make, and 2) they can easily spot common mistakes made by sloppy entrepreneurs (in order to quickly reject poor plans).

    Rule 1: For a forecast to be valid, it must portray realistic expect

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