Corollary 2A: Don't use percentages as a "crutch" in forecasting growth or trends.

You must be able to defend your projections. If your numbers are determined by "blindly" applying a percentage, the results become less defendable. For example, I had a client who initially projected a sales growth that, within five years, would require every person on Earth--now and in the past--to be a daily customer. Obviously, this was an unbelievable and un-defendable result.

You should expect an interested investor to place your projections "under a microscope."

Wire EDM Machining
Wire Electrical Discharge Machining, Wire EDM, is a machining process that utilizes a wire filament that carries an electrical charge through the wire and is used to cut away the hard metal elements.There are two major components required for the wire EDM machine, not the least of which is the wire used to remove the metal in order to shape the product being manufactured. The degree of precision and the amounts of materials that can be removed through successive passes are greatly determined by the composition of the wire, typically copper wire, as well as the type and strength of the electrical current. Certainly, the greater the

We have developed a set of rules regarding forecasting that we apply in writing business plans. We share them with you in this article in the hope that you will find these rules worthy of adopting in your efforts to write business plans as well.

Investors expect the forecasts in a business plan to present realistic, achievable goals. One of the best ways to have your plan rejected is to demonstrate that projections were not prepared thoughtfully and, therefore, the numbers are not defendable. This is most often demonstrated by not showing the details (if any) that went into the projections.

It is important to remember that investors typically review the projections first, at least in a cursory manner. This makes sense when you realize two things: 1) they are most interested in the money they might be able to make, and 2) they can easily spot common mistakes made by sloppy entrepreneurs (in order to quickly reject poor plans).

Rule 1: For a forecast to be valid, it must portray realistic expectations.

An unrealistic forecast is useless to anybody. The entrepreneur is unlikely to achieve the goals and the investor is unlikely to recover their investment, let alone make a profit.

Corollary 1A: A pessimistic forecast is equally as invalid as an optimistic one.

Conservative estimates are good as long as they still demonstrate a high likelihood of achievability. However, if the projections are perceived as too conservative, or even pessimistic, it looks like the entrepreneur is trying to build too much of a "fudge" factor into the numbers.

On the other hand, an overly optimistic project demonstrates the entrepreneur is trying to make the project look better than it should.

The best approach is to make the projections as realistic, achievable, and defendable as possible. In other words, show that you have done your "homework."

Corollary 1B: The first year of a realistic forecast should become the operating budget.

The investor will expect at least this level of confidence in the projections. If you can't make a realistic projection for the first year that can be used as a budget, more homework should be done.

Corollary 1C: Budgets must be prepared within the context of the long-range forecast.

If you were to plan an automobile trip from Denver to New York, it would not make sense to start by driving to Los Angeles. Likewise, make sure that the short-term activities and expenditures are in keeping with, and support, the long-term goals of the company.

Rule 2: Don't blindly rely on a "rule of thumb" to forecast the future.

Rules of thumb are techniques many people use to help them prepare forecasts. These rules can be useful when used as clues to guide the forecasting process, such as by comparing your past or future performance against that of similar companies. The problems come in when these techniques are used without regard to making sure they apply to your specific situation.

Corollary 2A: Don't use percentages as a "crutch" in forecasting growth or trends.

You must be able to defend your projections. If your numbers are determined by "blindly" applying a percentage, the results become less defendable. For example, I had a client who initially projected a sales growth that, within five years, would require every person on Earth--now and in the past--to be a daily customer. Obviously, this was an unbelievable and un-defendable result.

Rule 3: Make sure each and every assumption in the forecast is supported.

You should expect an interested investor to place your projections "under a microscope."

How to Select Help Desk Software for Superior Service and Efficiency
The ability to provide the highest level of customer service with the greatest levels of efficiency is paramount for companies in the market for web based help desk software. With this in mind, there are a few key features managers should look for during the evaluation process.Complete email integration. This is a feature in just about all help desk software, however as your evaluating make sure there is complete email integration that can support multiple mailboxes (if needed), a variety of mail server configurations, as well as key email features such as conversation threading and cc'ing.Interaction Log. To p

ested in the money they might be able to make, and 2) they can easily spot common mistakes made by sloppy entrepreneurs (in order to quickly reject poor plans).

Rule 1: For a forecast to be valid, it must portray realistic expectations.

An unrealistic forecast is useless to anybody. The entrepreneur is unlikely to achieve the goals and the investor is unlikely to recover their investment, let alone make a profit.

Corollary 1A: A pessimistic forecast is equally as invalid as an optimistic one.

Conservative estimates are good as long as they still demonstrate a high likelihood of achievability. However, if the projections are perceived as too conservative, or even pessimistic, it looks like the entrepreneur is trying to build too much of a "fudge" factor into the numbers.

On the other hand, an overly optimistic project demonstrates the entrepreneur is trying to make the project look better than it should.

The best approach is to make the projections as realistic, achievable, and defendable as possible. In other words, show that you have done your "homework."

Corollary 1B: The first year of a realistic forecast should become the operating budget.

The investor will expect at least this level of confidence in the projections. If you can't make a realistic projection for the first year that can be used as a budget, more homework should be done.

Corollary 1C: Budgets must be prepared within the context of the long-range forecast.

If you were to plan an automobile trip from Denver to New York, it would not make sense to start by driving to Los Angeles. Likewise, make sure that the short-term activities and expenditures are in keeping with, and support, the long-term goals of the company.

Rule 2: Don't blindly rely on a "rule of thumb" to forecast the future.

Rules of thumb are techniques many people use to help them prepare forecasts. These rules can be useful when used as clues to guide the forecasting process, such as by comparing your past or future performance against that of similar companies. The problems come in when these techniques are used without regard to making sure they apply to your specific situation.

Corollary 2A: Don't use percentages as a "crutch" in forecasting growth or trends.

You must be able to defend your projections. If your numbers are determined by "blindly" applying a percentage, the results become less defendable. For example, I had a client who initially projected a sales growth that, within five years, would require every person on Earth--now and in the past--to be a daily customer. Obviously, this was an unbelievable and un-defendable result.

Rule 3: Make sure each and every assumption in the forecast is supported.

You should expect an interested investor to place your projections "under a microscope."

Five Tips to Industrial-Strength Customer Service
The most valuable thing that you give to your customers isn’t a product. It’s the service they get when they call or visit your place of business. You could have the most valuable product in the world, but if you don’t have customer service to match, you’ve got nothing.American Steel Buildings of Tulsa, Okla., has been setting customer service records for years, and this year reported first-quarter records for moving self-storage steel. We credit our ability to set records to our ability to help customers. Here are a few tips we’ve picked up on the way.1) Who you hire is just as important as who you target.When

eur is trying to build too much of a "fudge" factor into the numbers.

On the other hand, an overly optimistic project demonstrates the entrepreneur is trying to make the project look better than it should.

The best approach is to make the projections as realistic, achievable, and defendable as possible. In other words, show that you have done your "homework."

Corollary 1B: The first year of a realistic forecast should become the operating budget.

The investor will expect at least this level of confidence in the projections. If you can't make a realistic projection for the first year that can be used as a budget, more homework should be done.

Corollary 1C: Budgets must be prepared within the context of the long-range forecast.

If you were to plan an automobile trip from Denver to New York, it would not make sense to start by driving to Los Angeles. Likewise, make sure that the short-term activities and expenditures are in keeping with, and support, the long-term goals of the company.

Rule 2: Don't blindly rely on a "rule of thumb" to forecast the future.

Rules of thumb are techniques many people use to help them prepare forecasts. These rules can be useful when used as clues to guide the forecasting process, such as by comparing your past or future performance against that of similar companies. The problems come in when these techniques are used without regard to making sure they apply to your specific situation.

Corollary 2A: Don't use percentages as a "crutch" in forecasting growth or trends.

You must be able to defend your projections. If your numbers are determined by "blindly" applying a percentage, the results become less defendable. For example, I had a client who initially projected a sales growth that, within five years, would require every person on Earth--now and in the past--to be a daily customer. Obviously, this was an unbelievable and un-defendable result.

Rule 3: Make sure each and every assumption in the forecast is supported.

You should expect an interested investor to place your projections "under a microscope."

How to Survive a Job Loss
Fired, canned, laid off, let go. Whatever you want to call it, it could happen. Sometimes, people see it coming. Other times, they're caught completely off guard. Either way, the process of surviving the loss of a job is the same, and it takes hard work and resolve to do so.Let goFor most people, their initial reaction to a job loss is shock, followed by anger and feelings of victimization. While these reactions are completely normal, dwelling on them is a mistake. As the old adage goes, you need to pull yourself up by the bootstraps and move forward. Feel sad, get mad…and move on! The worst thing you can do is bring a toxic

>Corollary 1C: Budgets must be prepared within the context of the long-range forecast.

If you were to plan an automobile trip from Denver to New York, it would not make sense to start by driving to Los Angeles. Likewise, make sure that the short-term activities and expenditures are in keeping with, and support, the long-term goals of the company.

Rule 2: Don't blindly rely on a "rule of thumb" to forecast the future.

Rules of thumb are techniques many people use to help them prepare forecasts. These rules can be useful when used as clues to guide the forecasting process, such as by comparing your past or future performance against that of similar companies. The problems come in when these techniques are used without regard to making sure they apply to your specific situation.

Corollary 2A: Don't use percentages as a "crutch" in forecasting growth or trends.

You must be able to defend your projections. If your numbers are determined by "blindly" applying a percentage, the results become less defendable. For example, I had a client who initially projected a sales growth that, within five years, would require every person on Earth--now and in the past--to be a daily customer. Obviously, this was an unbelievable and un-defendable result.

Rule 3: Make sure each and every assumption in the forecast is supported.

You should expect an interested investor to place your projections "under a microscope."

Seeking Passive Income
Many entrepreneurs have worked their way into a box.They started a businesses to provide freedom, but in reality what they have is job plus financial risk. They have placed themselves at the center of their business universe, and although in theory they can take all the time off they want – they can’t ever. On top of that, if they want to increase their income it usually means working harder. In fact, many are afraid to grow their businesses at all, because they think it will mean more work and more stress. And it will!The added revenue just isn’t worth it to them.Now these same entrepreneurs (and you may be one of th

thout regard to making sure they apply to your specific situation.

Corollary 2A: Don't use percentages as a "crutch" in forecasting growth or trends.

You must be able to defend your projections. If your numbers are determined by "blindly" applying a percentage, the results become less defendable. For example, I had a client who initially projected a sales growth that, within five years, would require every person on Earth--now and in the past--to be a daily customer. Obviously, this was an unbelievable and un-defendable result.

Rule 3: Make sure each and every assumption in the forecast is supported.

You should expect an interested investor to place your projections "under a microscope." Therefore, never underestimate the degree to which you may need to defend an assumption.

Rule 4: Validate and verify every calculation.

I had a client whose business used equipment manufactured in Europe. Therefore, he had to convert the machine's input and output from kilograms to pounds. The projections showed a relatively conservative, but realistic, profit margin for his particular industry. When I reviewed the plan, I checked his conversion factor (from kilograms to pounds) and found he used the wrong factor. When the correct factor was used, his net income changed from a profit to a loss--a very significant result that would have been a disaster had it been discovered by an investor.

Corollary 4A: Don't trust published calculations.

Published numbers have been found to be wrong. There may be a misprint. It doesn't hurt to verify the numbers and you become more of an expert in the process.

See the remaining rules in Part 2.

(c) Copyright 2006, Leonard M. Stillman Jr., All Rights Reserved.