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triolover
25-05-2005, 09:54 PM
I am planning to open my own baby store and am currently writing my business plan in order to secure funding, however I am really confused about how to work out my financial forecasts, what exactly am i supposed to include in my forecasts? I know that i need to perform research in order to make my figures realistic but I am unsure what I need to research and also how to go about it, especially when it comes to researching my competitors!

Statler
27-05-2005, 10:09 AM
Hi,

Some financial forecasts can be a bit hit and miss - for example your projected sales will involve alot of guesswork. However, I suggest that you do a couple - one for the best case scenario, ie loads of sales, and one for the worst case scenario - this latter one will be of most benefit as it will show you the absoulte minimum that your business needs in order to survive.

The Business Link website has some useful info about financial forecasts:

http://www.businesslink.gov.uk/bdotg/action/detail?r.l3=1073869162&r.l2=1073859137&r.l1=1073858805&r.s=sc&type=RESOURCES&itemId=1073791235

The Be Your Own Boss part of the Shell LiveWIRE website has a section on Finance and Funding, and you may find this of use:

http://www.shell-livewire.org/beyourownboss/main.php?catid=1

You may also be interested in the Finance Action Planner (FAP):

http://www.shell-livewire.org/fap/

As for researching your competitors, this is actually very easy! Simply identify your local competitors, eg specialist baby shops as well as supermarkets and department stores, etc, and go on a spying trip! Have a list of products you want to sell, and see if they're also selling them, and if so, for how much. The Internet will also be a massive help in comparing prices, products on offer, etc among UK retailers.

Lee