When starting your own business, it is imperative to make a forecast. The more detailed and believable it is, the easier it will be for you to attract investors.
It is necessary
Knowledge of the market and the basics of microeconomics
Instructions
Step 1
If you are planning to start your own business, then in order to calculate the start-up capital and the estimated profit, you need to make an initial forecast. If you start a business from scratch, then most likely you do not have statistics to rely on. In this case, you will have to turn to the help of the Internet. You can find there business plans for companies with a similar profile and adapt them for yourself.
Step 2
Compare business sizes to adapt. For a small business it is easier to make a forecast because fewer pay items are required to account. In this case, you can make a forecast without resorting to the help of professionals, if the latter is too expensive for you. Try to calculate your break-even point. You can easily find information on how to calculate it on the Internet or in any textbook on microeconomics. Do not forget to take into account all the factors that affect your business: the presence of competitors, the target market, current market conditions, currency fluctuations, raw material prices. Soberly balance your capabilities against your goals.
Step 3
If you already have experience in some kind of business, then it will be easier for you to make a forecast. Be sure to refer to the statistics. Collect information for several reporting periods, compare the results. You can build a graph or chart to see everything more clearly. But you shouldn't count on dry statistics. Scroll through financial news, study the state of affairs in the market, consult the opinion of experts. And never make too rosy predictions. Business is business, and there are a lot of force majeure factors.
