Wednesday, December 31, 2008

How do I go about making "projected accounts" in a business plan for a grant proposal from my local authority?

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How do I go about making "projected accounts" in a business plan for a grant proposal from my local authority?

I'm trying to launch my own computer repair company and I will be running it from home on a sole trader basis. My expertise is in computers I have no idea about accounts.

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I'm assuming by "projected accounts" you mean a list of customers you suspect you'll be able to land. If so, it's fine to just add a paragraph to your business plan saying something like "The following list identifies 10 (or however many) potential accounts I anticipate obtaining during the first year of operation." and add your rationale for believing you'll be able to pull these accounts.

You can make this a lot more compelling if you can get "letters of intent" from those accounts, where the individual or business owner gives you a letter saying that it's their intention to use your service once it's available.

When calculating your anticipated business volume, revenue & expenses, however, don't count your chickens before they hatch. Just because there are 10 high-probability prospects doesn't mean you'll get all of them. Be very conservative with sales estimates.

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