Financial assumptions

- A major component of your business plan…is your financial plan, and the first step in building…that financial plan is documenting your assumptions.…What are you going to assume, and what's the…grounding for those assumptions?…Maybe you look at comparables, market research, or basic…estimates to figure out what that ingoing assumption is.…You'll also need to lay out what the best case…and worst case scenario is for each assumption…because they'll drive different financial performance.…

Then explain how large of an impact each assumption has…on your overall financial performance.…For example, my firm runs training classes.…In the beginning, when I wrote the business plan,…we had assumptions around the price of our courses,…and we looked at comparable training to say…here's our assumption and here's what the market bears.…We looked at conversion rates in terms of sales.…We had an assumption around how many participants…we would have in each class, because…we charge on a per-participant basis.…

I had to make assumptions about the number of…