Link #2 for Discussion for 10-10-11 to 10-17-11

Here is the second link for discussion for this week. The same rules/suggestions apply as for the first topic. Please make AT LEAST one thoughtful comment on each topic.

Startups Without Financial Projections Are Doomed

I can testify to this, even though im still in business and doing a bit better than my first 4 months in business having a finacial plan in the beginning of your startup is very important. An entreprenuer must know where he is and where he is going financially in order to operate the business successfully.

I completely agree...An entreprenuer must know where he is and where he is going financially in order to operate the business successfully.When I first started my small business I didn't see the importance. But even now, my biz plan changes every other month.

I can't imagine how someone would be able to operate any sort of significant business without a financial plan. I agree that not only is it necessary to attract investors, but it's going to end up very useful to forecast any potential issues that might crop up. It also will help diagnose any problems that develop -- you can compare actual costs/revenue to the financial plan and understand what it is that did not go according to it.

I understand the Startup Financial Projection, as the support system of the business. Is indispensable to have from the moment that we bigin to search for a location to buy or to lease. To have financial projections at hand, that had been tested and successful, is a guarantor that our business will bere fruits. But, I also believe, that the executor is as important because it requires: self disciple, experience in the area of business, and loyalty to self. I also know that, money matters are sometimes boring and even sad, but to anticipate expenses is part of the package called business, and to count your blessings as well.

i truely agree having a business plane is the most important thing when you are starting a business you need some thing to go off of and to know where your money is coming from if you don't have a busniess plane you will be lost and your business will not make it

The linked article has a great point. When I started my business with my business partner we had almost no concept of how to start a small business. We didn't create a financial projection, and it's made things that much tougher. I could have benefited a lot from having an idea of what kind of money we'd need to get all the equipment we'd need together and to start an inventory. Having created a financial projection would have required more planning, as well. Getting all the details together helps a lot.

not having a financial statement can be hazardous to staring a business. You need to know where all the money is going at all times. You need to know if you are making money or if you are losing money and the only way to tell either of these is to have a well put together finanacial statement.