I am almost done writing my business plan. However I have come across a part I can't understand or figure out. The Industry ratios. Whenever I look at a sample plan there is always Industry ratios. First, Do I need them? Second, Where do I get them from? Third, How do I read them? And lastly, How do I input my own numbers? Thanks in advance!!!
I have a few question about Business Plans
- Thread starter bigmos
- Start date
If you don't have any competition in what you are doing then you will not have any ratios so you would state that you have no competion.
For every industry there is usually some trade magazine or periodical that has these numbers. You can sometimes find ratios on yahoo depending on the industry. You can google some of it for some industry.
Whether you need them or not depends on who you are showing your plan to and whether or not it helps your presentation. Ratios are supposed to tell the story of how likely your business will succeed. If you put it in there make sure it does that and make sure it makes sense when people read it. Some people will call you out on it when they see it. They will ask for your source and your method of computations.
For every industry there is usually some trade magazine or periodical that has these numbers. You can sometimes find ratios on yahoo depending on the industry. You can google some of it for some industry.
Whether you need them or not depends on who you are showing your plan to and whether or not it helps your presentation. Ratios are supposed to tell the story of how likely your business will succeed. If you put it in there make sure it does that and make sure it makes sense when people read it. Some people will call you out on it when they see it. They will ask for your source and your method of computations.
There are/will always be industry ratios.
Your investors will need to know these numbers. They will want to know who the competition is.
If you don't have competition. You need to list the next closest competition and their industry ratios. As far as how to find 'em. read the post above.
Your investors will need to know these numbers. They will want to know who the competition is.
If you don't have competition. You need to list the next closest competition and their industry ratios. As far as how to find 'em. read the post above.
Here is a link from googling "industry ratios"
It explains what the term is and give a few places you can find some ratios
http://vcuhvlibrary.uhv.edu/study/business.cfm
It explains what the term is and give a few places you can find some ratios
http://vcuhvlibrary.uhv.edu/study/business.cfm