Consultants vs. Do-It-Yourself
You are encouraged to write your own business plan—at least the initial draft. If you are not experienced in this process, use software to assist you. Entrepreneurs need to answer the fundamental questions. What business are you really in? How does it make money and build value? From those
Questions flow the ways and means of entering the marketplace and how much it is going to cost.
However, you can hire a consultant to help you polish your plan. Many entrepreneurs use an accountant to assist with the financial analysis and projections. Remember, the soundness of financial projections is largely dependent upon the underlying assumptions. Using estimates that are based on sound experience, relevant knowledge, and thorough research will give credible and realistic results.
In expressing financial projections, you may wish to present a conservative version and one or more optimistic versions, or worst case, expected case, and best case scenarios. This can show the investor that your conservative version is viable and more favorable conditions generate better results.
Make Realistic Projections: Projections
Have a funny way of coming back to haunt you if you do not meet investor expectations. Be as certain as you can that you can make the numbers.
