how to make finance projection for a startup?
I am preparing for a business plan which includes finance projection. We provide online (Internet-based) services and revenue depends much on the number of users. The problem is: we can not make any reasonable assumptions on the number of users because our services have not been deployed yet.
Should I wait for few months after the deployment to have better estimation on the number of users? (I would like NOT to wait) Or any advice on how to make convincing finance projection in this scenario.
Any feedback would be very much helpful. Thanks in advance!
NAT
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- THANH NGUYEN1312852512
Before any deployment, you always need assumption for at least 2 reason: Is this idea make sense to follow ? How much I would invest before it can live on it own. Don't look internal, look external - i.e do a lot of market research on similar model to see how much traffic they can gain, how much investment usually need, it would take how long before you can sale, how much other resource (money, people, knowledge...) you may need. The have your own analysis (still theoretically) and during deployment, adjust regularly accordingly. My tips are: whatever you project, in practice, prepare that it would take twice the time and double the money. Good luck!:
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Thank you, Ms. Thanh Nguyen!
I am trying to analyze my model based on assumptions on cost, resources and revenue possibility. I just wanted to be clear about the revenue projection. We did market research. The difficulty is that: we would like to provide novel services and so far can not apply any existing models in our narrow area (but similar models in a bigger market do exist).Yes, your tips are helpful. Properly, I should have my own analysis for now and adjust regularly and accordingly on the way.
Thanks again!
NAT-
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hZWZmZhglmuanJuExaBkb-GkoGOYcFLJpMWoq4DHo5ifmatXc6xsm2pTcdGrrZenVW7VbW6eUp3Zppeky9TSg5_XnJeYaoOgydel0tHTlqPad9Wk01hr2XKab1qox6eVoKdbcJlzZJ-rpGqccliTo6aqx6WVzZRZn6tuY5yHmJechp3ZnmmbW9Pa0MjWxaaeylOhpaBqaohpmW5tWqGysQ.. - Hoa Dang Ngoc PMP®1312884391
Anytime The Finance Plan always is the core of Business plan and you objective on that plan is define your Breakeven point ( Điểm hòa vốn ). After that you can easily have the target point of Revenue and profit.
As Ms. Thanh has mention, you need to follow the resources that you might need for the business to define them.
It's difficult when you talking about "novel services" that make me have the feeling that you are not confident enough about your services and who are going to be your customers and the customer's needs.
Be reality is very importance factor especially on the Internet based idea.
Good luck.-
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Thank you for mentioning the concept of breakeven point. My business plan would be more convincing when I can identify the breakeven point. As a basis of that, people may have better evaluation on revenue possibility.
By "novel", I mean that the idea and technology are new. Although I have identified market segments and target customer, it is challenging to have approximate estimation (compared to a certain service which is already running).
I have better understandings now.
Cheers!
NAT-
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