When buliding a business plan should the market analysis......?
projected profit and loss ect. be for future years or past? I'm using a template and the years that are plugged in are 2003, 2004, 2005, . I'm just wondering if these numbers I'm entering should be for future use, or off what we have already done?
User Comments
- They will want to know both if you are going for a loan. So show them what has been and then they will be in a better position to project with you (confirm your numbers) you see the benefit of showing them what has happened in the past for your company? It will give them confidence that you aren't overstating what you know you can do.
- When building a business plan it should contain a complete market analysis: past, present, and future. A market analysis should not focus on just one set year, but several years to see how the market has changed. This is the best way to know how the customer traffic in the area is moving. If you have the past numbers then you can compare to the present to see if the market has increased or decreased. This in turn will help you project the market for future traffic. I learned this the hard way by not seeing how the market for my product was in the past. I'm not saying you can't sell in a market without knowing past numbers, but it will make your future a lot easier knowing how the market in the area fluctuates.