2006-11-07 08:07:53 · 3 answers · asked by Vaso D 1 in Business & Finance ➔ Small Business
You question is to vague. I don't know what you want to know for sure.
2006-11-07 08:12:13 · answer #1 · answered by Medical and Business Information 5 · 0⤊ 0⤋
Items for which assumptions are required in every business:
1. Market for your product or services. Who, what size, where.
2. Price the market will pay per unit.
3. Cost of delivering service or product.
4. Sales General and Administrative (SG&A) will exist - how much?
5. You must perform regulatory compliance (sales tax permit, building permit, business license, etc).
6. Growth rate (can be a negative number).
7. Competition for the same money. People tell me every week "My business doesn't have a competitor." Of course it does. SOMETHING is going to compete for the same money, it just might not be the same product or service.
8. Tax rates.
9. WACC (Weighted Average Cost of Capital).
These apply to every business I've ever observed, from manufacturing cars to running a car wash to smuggling.
Managing Director
Results Associates LLC
resultsllc@earthlink.net
2006-11-07 16:30:11 · answer #2 · answered by byhisello99 5 · 0⤊ 0⤋
The Biggest assumption of any business is that their product or service will sell.
If the product/service is a flop then all forecasts and projections, financial or otherwise are totally useless!
2006-11-07 16:18:48 · answer #3 · answered by Jimbobarino 4 · 0⤊ 0⤋