Build a business plan from clear assumptions

A useful operating plan connects expected revenue, recurring costs, timing, and decisions to assumptions you can revisit.

1. 01

   Set a starting point

   Use recent records and document what period they cover. Separate recurring activity from one-off events.

2. 02

   Map revenue timing

   List expected work or sales and the timing of payment. Distinguish signed commitments from possibilities.

3. 03

   Include operating costs

   Account for payroll, suppliers, rent, taxes, debt service, and seasonal costs that fit your business.

4. 04

   Create scenarios

   Change one assumption at a time, such as a delayed client payment or planned hire, and compare the estimate.

5. 05

   Review regularly

   Compare actual activity with the plan and record why material differences occurred.

General educational information only.