What Is a Market Forecast?
A market forecast is a core component of a market analysis. It projects the future numbers, characteristics, and trends in your target market. A standard analysis shows the projected number of potential customers divided into segments. This example of a simple market forecast defines two target market segments and projects the potential customers in each...
By Tim Berry
International Market Research
Market data for other countries As the power of the Internet spreads throughout the world, demographic and economic statistics are becoming more available. If you’re working on market data for your own country, check with your local business development agencies, business schools, and industry trade associations for help in finding the information you need. These...
By Tim Berry
Business Ratios Give You Type-of-Business Comparisons
The illustration below shows a Business Ratios table. It includes dozens of standard business ratios calculated from business plan financials, and used and expected by bankers, financial analysts, and investors. It also includes a column of statistical indicators for the specific type of business. This industry information is classified and categorized by Standard Industrial Classification...
By Tim Berry
The Bottom Line in Business
The familiar phrase “the bottom line,” used as synonymous with the conclusion or the underlying truth, is actually taken from the standard Income Statement in accounting, which subtracts costs and expenses from sales and shows profits as the bottom line of the statement. After you have projected sales and cost of sales, you need to...
By Tim Berry
Cash Is King
In a previous article I talked about business numbers and the critical difference between cash and profits. This article looks at how to plan for cash in a business plan, understanding the critical elements that affect cash flow. You don’t want to be one of those businesses that goes broke even while producing profits. Basic...
By Tim Berry
Estimating Unknown Expenses
How do you estimate specific costs for a new business? How do you predict expenses? Normally you need some experience. If you have no idea, then you might think again about starting this business. Maybe your team should add somebody who does have experience, and can make estimates. Here is why. In the real world,...
By Tim Berry
