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Projected growth..

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  • 13-11-2010 1:28am
    #1
    theshamu
    Registered Users Posts: 166 ✭✭


    Hi folks,

    How does one go about projecting growth of a start up business.? Want to start on a business plan in the coming months and would need to include this stat if possible, but I've no idea how to do this. :eek:

    Any help appreciated..

    Thanks.
    Tagged:


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    #2
    YouProduce
    Closed Accounts Posts: 51 ✭✭YouProduce


    I'm havin trouble with this myself. The advice I've been getting might seem a little screwy. I was told to tag them to your ambitions for the business. Estimate how much money you want to taking out of the company as a wage in year three (be ambitious, being conservative won't impress an investor who wants to see you paying yourself well so long as the company is growing), then year two, then year one. Think about how many staff you will need in year three, then year two, etc. Consider their wages. Now consider the ratio & base your growth projections upon that.

    Now estimate costs/expenses, and then project the sales you need to sustain those out-goings.

    Not sure if that helps, I'm in the same position as yourself, so maybe some more experienced individuals will laugh at this method, but thats the advice I've gotten.


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    #3
    nlpete
    Registered Users Posts: 40 ✭nlpete


    Hey there

    Myself and a friend have just recived a grant from the CEB.

    We prospected for customers and found ten that would put their interest in writing and we calculated the costs and overheads and all the rest and found we needed to double our customer list so we found some more interested people and looked at their estimated orders.

    If the total return from that exeeds your costs then thats your proffit.

    We then took a look at the market size and potential for adding products and how much work we could fit into our time and that gave us our projected sales and proffit for years two and three.

    They know your guessing but thats natural...after all it your head on the block...so be honest with yourself.

    Pete


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