Definitive Business Plan, Second Edition, The

What if?

Isn't it always the simplest techniques that are the best? If you followed the steps outlined in Chapters 7 –10, you will have built a series of inter-linked spreadsheets. If you amend one of the basic inputs or assumptions, the changes ripple through and you see immediately the net effect on profits and cash flow. You can use this to build a table such as that shown in Fig.11.8. This is easy to do and boosts understanding significantly – for you and for your readers.

Figure 11.8. Avoiding risks in the business plan

In practice, you need to check that the relationships built into your forecast hold good under the new conditions. A ...