Neither is particularly exciting—especially when you compare it to the idea at the core of your business. For external funding, financial projections help convince lenders and investors that your business will not only be profitable but also offer them a return on investment. For internal purposes, accurate forecasting enables you to budget for your new business as well as benchmark your milestones. Comparing your actual financial statements to your projections is referred to as variance analysis. Conversely, if your immediate revenue exceeds your pro forma income, then you may need to hire employees, expand your facility, or seek financing sooner than you expected.
How to Write a Five-Year Business Plan
Quick Guide: How to Write a Strategic Plan | Smartsheet
The following business plan for the fictional firm of "Acme Management Technology" AMT is an example of what a completed business plan might look like. This example is provided as part of the instructions and detailed descriptions included in the Components of a Business Plan. This business plan leads the way by renewing our vision and strategic focus of adding value to our target market segments—the small business and high-end home office users in our local market. It also provides a step-by-step plan for improving our sales, gross margin, and profitability. AMT is built on the assumption that the management of information technology for business is like legal advice, accounting, graphic arts, and other bodies of knowledge, in that it is not inherently a do-it-yourself prospect. Smart business people who aren't computer hobbyists need to find quality vendors of reliable hardware, software, service, and support and they need to use these quality vendors as they use their other professional service suppliers—as trusted allies.
Write a business plan
It's always easier to write something if you can read an example first, so here's an executive summary example that you can use as a model for your own business plan's executive summary. For instructions and tips on how to write an executive summary for your own business plan, see Writing the Executive Summary of the Business Plan , part of the Writing a Business Plan series. The executive summary goes near the beginning of the plan but is written last.