Developing Realistic Financial AssumptionsWritten by Dave Lavinsky
Many investors skip straight to financial section of business plan. It is critical that assumptions and projections in this section be realistic. Plans that show penetration, operating margin and revenues per employee figures that are poorly reasoned, internally inconsistent or simply unrealistic greatly damage credibility of entire business plan. In contrast, sober, well-reasoned financial assumptions and projections communicate operational maturity and credibility.For instance, if company is categorized as a networking infrastructure firm, and business plan projects 80% operating margins, investors will raise a red flag. This is because investors can readily access operating margins of publicly-traded networking infrastructure firms and find that none have operating margins this high. As much as possible, financial assumptions should be based on actual results from your firm or other firms. As example above indicates, it is fairly easy to look at a public company’s operating
| | Clearing Office ClutterWritten by Janet Barclay
The Oxford Canadian Dictionary defines clutter as "a crowded and untidy collection of things" or "an untidy state." When we don't have designated places for all our belongings, clutter is often result. Even if you have established organizational systems, you will face problems with clutter unless you have a plan to find homes for every single article you bring into your office. Otherwise, it's too easy to set things on top of your desk, filing cabinet, or another surface "for now." All too often, "for now" ends up becoming "forever" or at least until things reach point that you can no longer tolerate clutter. If you're already at this point, following tips may help you get back on track.The first thing you must do is set aside time to deal with clutter. Many small business owners feel they are too busy to do this, but in reality, time you'll save once everything is organized will more than make up for it. You might choose to block off a day or two just to concentrate on this project, if your schedule allows it. If not, set aside an hour a day or a couple of hours a week and keep at it until there's no clutter left in your office. Treat this appointment with yourself same way you would treat an appointment with one of your clients - don't cancel it unless you have a dire emergency, and don't deviate from task at hand by taking phone calls or getting distracted by other work. The best place to begin decluttering your office is with your desk. There is no reason to keep anything in your work area than things that you are currently working on. Your current projects should be kept where you can access them easily, but rather than keeping them in piles on your desk, they should be organized into clearly labeled file folders. It's very likely that those piles of paper on your desk include information which is out of date and can be discarded, as well as documents that you need to keep, but are not currently using, which can be filed in your filing cabinet. Once your work area is clutter free, you need to go through your files and discard anything you no longer need, shredding all documents which contain confidential information, of course. Large organizations usually have a retention schedule that dictates how long certain types of information must be kept. If you're not sure, it may be wise to consult a lawyer or accountant to determine how long certain documents must be retained by law in your area. Items which are needed for legal or other reasons, but not referred to on a regular basis, should be put in an archive area, such as a lower file drawer, storage room, or offsite storage, depending on volume of paper you have and space you have available.
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