Is planning projected income total guesswork?...

This question comes up time and time again in my head - each time I watch Dragons Den, in fact.

The figures that those pitching their business come up with for 'anticipated turnover' always seem complete pie in the sky and really far fetched.

So are there are any good and realistic methods one can use to project income? Some sort of formulas you can plug in some variables and find out what might happen?

Sasha

Re : Is planning projected income total guesswork?

Hi Sasha

Sometimes one gets that impression from Dragons Den, I agree

In the sense that forecasts have not actually happened they do not reflect reality, however there are many steps one can take to make them as accurate as possible so they certainly shouldn't just be 'pie in the sky'

Dan
__________________
Web Design

Re : Is planning projected income total guesswork?

Sales, margins, overheads and other expenditure should be capable of being estimated if one is being honest but it is how they work out among themselves that is the problem; especially in the case of cashflow. A seasonal business can suffer heavy expenditure on goods well ahead of the actual selling period for them for example and VAT and tax payments can take their toll. That's what my site seeks to address.

http://www.figurewizard.com

Joe
__________________
http://www.figurewizard.com Free Business Forecasting and Planning Online