HBR 20-Minute Manager Boxed Set (10 Books) (HBR 20-Minute Manager Series)

Creating Business Plans

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The investment committee member, for instance, will

want to know whether your venture can achieve the

company’s hurdle rate (the minimum rate of return

expected of all projects). On the other hand, the ven-

ture capitalist (or even a smart family member) con-

sidering buying into your venture will want to know

what kind of return on investment she will achieve.

The bank or lender will want to know about the com-

pany’s borrowing capacity and its ability to repay its

debt when deciding whether to approve a loan.

Let’s look at some of the other sections that typi-

cally comprise the fi nancial plan.

Breakeven analysis

As noted earlier, the breakeven point is the pivotal

moment when the business begins to be profi table.

At what ...