The manual and associated software are supplied under license agreements and may be used only in accordance with the terms of these agreements which are set out in Appendix 1.

CAREFULLY READ THESE LICENSE AGREEMENTS. USE OF EXL-PLAN CONSTITUTES YOUR ACCEPTANCE OF THEIR TERMS. IF YOU DO NOT AGREE TO THEIR TERMS, DO NOT DISTRIBUTE, INSTALL AND/OR USE THIS SOFTWARE. USE OF THIS SOFTWARE IS CONDITIONED UPON COMPLIANCE BY USER WITH THE TERMS OF THESE AGREEMENTS.

As Invest-Tech has a policy of continual product improvement, the information and data contained in this manual are subject to change without notice and do not represent a commitment by the vendor.

Neither the manual nor software may be copied or reproduced in any form, in whole or in part, without prior written permission of Invest-Tech Limited.

Exl-Plan is a trademark of Invest-Tech Limited

Microsoft and Windows are either registered trademarks

or trademarks of Microsoft Corporation.

Invest-Tech Limited
27 Ardmeen Park. Blackrock, Co Dublin, Ireland

Web: http://www.planware.org Email: mailto:info@planware.org

Tel: 283 4083 Fax: 278 2391

Dial codes: IRL: 01- UK: 00-353-1- US: 011-353-1- Other: +353-1-

Using this Manual

This manual is aimed at first-time users of planning software as well as at experienced planners and Excel users.

It is suitable for use with all shareware/commercial versions [1] and editions of Exl-Plan. However, for simplicity and to avoid confusion, it is mainly directed at the Super version of Exl-Plan. Where appropriate references are made to other versions.

When using the manual, instructions must be interpreted to take account of the differences between the various versions of Exl-Plan. Key differences include the following:

§ The Micro version handles only one revenue/cost group whereas the more powerful versions handle up to ten such groups.

§ The more powerful versions handle numerous additional cost and expense variables as well as greater detail in relation to fixed assets, debt etc.

§ The Micro & Lite versions do not specifically handle finished goods inventory and do not have facilities for deferring the cashflows relating to individual cost and expense variables.

§ The more powerful versions have additional sensitivity analysis and planning tools.

§ The Ultra and Ultra Plus versions are based on the Super and Super Plus versions. The main difference are that they handle monthly projections for an initial three years (as compared with one year for all other versions). Accordingly, their quarterly projections refer to fourth and fifth years (instead of second and third) and their optional annual projections relate to sixth and seventh years.

This manual is based on the US/Canadian editions of Exl-Plan and uses US terminologies. Users of UK/International editions of Exl-Plan should note that the Monthly Assumption Report No. 8 for handling input/output taxes (e.g. sales taxes, VAT, GST etc.) does not exist in these editions as the variables for handling these taxes are located with Monthly Assumption Report Nos. 1 & 6. Note that the diagrams in the manual relate to the Pro version of Exl-Plan.

Note: The optional printed manuals which can be purchased with commercial or upgraded copies of Exl-Plan are specifically tailored to suit each separate version and edition of Exl-Plan. Likewise, the online help systems accompanying Exl-Plan relate to specific versions and editions.

For further assistance, be sure to check:

1. README.DOC file accompanying Exl-Plan.

2. Frequently Asked Questions at <http://www.planware.org/exlfaq.htm>.

Very Quick Start

The procedures below should enable an Excel spreadsheet user to get Exl-Plan up and running with minimal initial instruction. If problems are encountered, refer to Loading Exl-Plan for the First Time or Getting Started with Exl-Plan.

Exl-Plan requires Microsoft Excel for Windows (versions 5, 7, 8, 95, 97, 2000 or XP) running with Windows 3.1 or Windows 95/98/NT/2000/XP on a PC with a 486/50Mhz or higher processor, 16+ MB of memory, VGA or better display and 20 Mb disk space.

If Exl-Plan was secured as shareware and subsequently upgraded remotely by Invest-Tech, the upgraded Exl-Plan’s workbook file should be kept safe and intact as the primary master version of Exl-Plan. Copies of this file should be created and used for normal working purposes.

When being loaded for the first time, Exl-Plan needs 16 Mb of disk space to enable it to automatically create backup copies (WORKPLAN.XLS and/or TESTPLAN.XLS) during set up. If this space is not available, Exl-Plan will skip their creation.

Installation takes a few monutes - depending on the speed of the PC being used. Exl-Plan must always be installed from supplied installation disk(s) or via a downloaded installation file. It will not operate correctly if it is installed by simply transferring an Exl-Plan workbook file from one PC to another.

Installation of Exl-Plan (Windows 95/98/NT/2000/XP)

When Exl-Plan starts loading, Excel may display a dialog about macros and viruses. If Exl-Plan was secured from a reliable source or directly from Invest-Tech, press the Enable Macros button. Note that Exl-Plan will not load properly if the Disable Macros button is pressed. As loading progresses, a further dialog may appear about the location of macros. This can be disabled or ignored.

If using Excel 2000 (or higher) make sure that security is set to Medium (via Tools | Macro | Security | Security Level) before loading Exl-Plan.

Installation takes a few minutes. The procedure is as follows:

1. Close all other applications.

2. Confirm that at least 16 Mb of space is free on the hard disk to which Exl-Plan will be installed.

3. Insert the Exl-Plan Product Disk in a disk drive and use Start | Run to run the executable file EXLPLAN.EXE by entering A:\EXLPLAN.EXE at the Open prompt (replace A: by B: if appropriate). Follow on-screen instructions to install Exl-Plan’s files into the appropriate folders. (If Exl-Plan was acquired by downloading from the Internet to a temporary folder, the downloaded executable file should be run and its on-screen instructions followed to install Exl-Plan's files into the appropriate folders.)

4. When installation has finished, go to the Exl-Plan menu within the Programs Menu and review any indicated README file.

5. Load Excel and open the main Exl-Plan workbook file EXLPLAN.XLS located in the folder specified during installation. Once loaded, follow on-screen prompts and then wait a few moments while copies of Exl-Plan are created. These copies, WORKPLAN.XLS and TESTPLAN.XLS, should be used as the primary working copy and for experimentation respectively. EXLPLAN.XLS should be carefully retained as the original master copy.

Note: If Exl-Plan failed to detect the correct size of the screen display being used, use *Setup | Change Default Zoom Value.

Installation of Exl-Plan (Windows 3.1)

Installation takes a few minutes. The procedure is as follows:

1. Close all other applications.

2. Confirm that at least 16 Mb of space is free on the hard disk to which Exl-Plan will be installed.

3. Insert the Exl-Plan Product Disk in a disk drive and use the Run option within File Manager or Program Manager to run the executable file EXLPLAN.EXE by entering A:\EXLPLAN.EXE at the prompt (replace A: by B: if appropriate). Follow on-screen instructions to install Exl-Plan’s files into the appropriate sub-directories.
(If Exl-Plan was acquired by downloading from the Internet to a temporary sub-directory, the downloaded executable file should be run and its on-screen instructions followed to install Exl-Plan's files into the appropriate sub-directories.)

4. Once installation is complete, go to the Exl-Plan Application Group and review any displayed README file.

5. Load Excel and open the main Exl-Plan workbook file EXLPLAN.XLS located in the sub-directory specified during installation. Once loaded, follow on-screen prompts and then wait a few moments while copies of Exl-Plan are created. These copies, WORKPLAN.XLS and TESTPLAN.XLS, should be used as the primary working copy and for experimentation respectively. EXLPLAN.XLS should be carefully retained as the original master copy.

Note: If Exl-Plan failed to detect the correct size of the screen display being used, use *Setup | Change Default Zoom Value.

Familiarization with Exl-Plan

When running Exl-Plan with W95/98/NT/2000/XP, it is best to place the taskbar at the bottom of the screen in order to improve the view of reports etc.

1. To become familiar with the basics and geography of Exl-Plan, take the Quik-Tour (*Exl-Plan Help | Quik-Tour) from within the previously created TESTPLAN.XLS file.

2. Run the cursor across the menu bar - File, Edit etc. Note that Exl-Plan has added several new menus (*Assumptions, *Protection etc.).

3. Click the M_S worksheet tab (or the "MA" toolbar button) to go to the monthly assumptions report for sales forecasts etc. Note that assumption values (displayed in blue) should be entered or altered only within the rectangular boxed-in areas opposite the ->> or <<->> arrows. Values shown in black contain formulae and are normally locked (protected).

4. Try adding or changing some of the supplied assumption values for sales and recalculate (*Tools | Calculate All & Check) to check the model's integrity and to update all the monthly, first-year, quarterly and annual output reports. (Note that Exl-Plan always uses manual calculation instead of Excel's automatic calculation default setting).

5. Click sheet tabs to view the other monthly assumption reports (M_M, M_C etc.) and change/add assumption values as desired.

6. Use Exl-Plan’s menus, worksheet tabs and buttons (especially "<-" and "->") to view the remaining assumption and output reports and charts.

7. Explore Exl-Plan's help facilities within the *Exl-Plan Help menu.

Using Quik-Plan - Part 1

Quik-Plan is a facility within Exl-Plan that simplifies the preparation of high-level multi-year projections. To use it to compile real or hypothetical trial financial projections, proceed as follows:

1. Save TESTPLAN.XLS with an appropriate new file name e.g. QUIKPLAN.XLS.

2. Select *Setup | Basic Model Info and enter basic information about the business to be modeled.

3. Select *Setup | Model Title and give the model an appropriate title e.g. First Attempt with Quik-Plan.

4. Select *Tools | Quik-Plan to make first-cut projections. Delete or overwrite the supplied assumptions and then run Quik-Plan with the newly entered values.

5. Review a selection of the monthly, quarterly and annual assumption & output reports and charts to see for how Quik-Plan operates and Exl-Plan handles its assumptions.

6. Revise and expand Quik-Plan's assumptions from within the monthly assumption reports and recalculate as desired (select either *Tools | Calculate All & Check or the "C" button on the toolbar).

7. Experiment with Exl-Plan’s data-entry facilities which are located within the *Assumptions menu (i.e. Clear Assumptions, Constant Assumptions etc.) or accessible via buttons in the toolbar (refer to Section 5.6 Fast Entry of Assumptions).

Using Quik-Plan - Part 2

1. Go to the Quarterly Assumptions Report (by clicking the Q_A tab or "QA" button). Observe that monthly projections for the first-year have been included in this report as quarterly values. In the case of Ultra & Ultra Plus versions, the monthly projections for the third year have been included as quarterly values.

2. Add or change quarterly assumptions for the second and third years. Recalculate and review the quarterly and annual output reports and their associated charts.

3. If using the Pro, Super or Super Plus versions of Exl-Plan, go to the 4th-5th Year Assumptions Report (click the 45_A tab). If using the Ultra or Ultra Plus versions, go to the 6th-7th Year Assumptions Report (click the 67_A tab). Add or change annual assumptions for the fourth and fifth years and recalculate.

4. View the Textual Summary Report (TEXT tab or *Output | Textual) and other annual output reports & charts.

5. Print selected assumption or output reports and charts.

6. If using Pro, Super, Super Plus, Ultra or Ultra Plus versions, use the sensitivity analysis facility (*Tools | Sensitivity Analysis) to globally change groups of key monthly and/or quarterly assumptions.

7. If using Super, Super Plus, Ultra or Ultra Plus versions, review Exl-Plan's other planning tools for analyzing what-ifs (Section 6.8), profitability planning (Section 6.9), short-term cashflow planning (Section 6.10), performance tracking (Section 6.11) and trend analysis (Section 6.12).

8. Continue exploring Exl-Plan's menus etc. and entering or changing assumptions. Use its online help (*Exl-Plan | Help) as appropriate. Refer to Section 6 Using Exl-Plan and Appendix 5 Guidance on Entering Assumptions for further guidance.

Building a New Model

To start constructing a new model (without using Quik-Plan), reload WORKPLAN.XLS and immediately save it with an appropriate new file name. Then proceed as outlined below.

Note that a user's assumptions are entered directly into Monthly, Quarterly & 4^th/5^th Year Assumption Reports only. Output Reports contain extensive formulae which generate the projections. The only exceptions are the prior year income statement in the Monthly Income Statements and the opening balance sheet in Monthly Balance Sheet which must be entered directly into these reports.

Be sure to save the model at regular intervals.

Initiating Keystrokes

Remove all existing assumptions

ALT+S, L

Enter basic data about the business, projection start date, currency and main products

ALT+S, B

Enter title for the new model

ALT+S, T

Enter monthly assumptions

ALT+A etc.

Enter opening balance sheet & prior year income statement

ALT+U, N ALT+U, M

Enter quarterly assumptions for second & third years

ALT+A, Q

Enter annual assumptions for 4^th and 5^th years

ALT+A, Y

Final recalculation

ALT+O, A

Save projections

ALT+F, S

Review output reports & graphs

ALT+U, ALT+C

Print reports & graphs

ALT+N, ALT+R

List of Toolbar Buttons

This listing of toolbar buttons mainly relates to the Micro, Lite, Pro, Super & Super Plus versions. There are minor variations for the Ultra and Ultra Plus versions.

Note: To see a button's hint on the toolbar, slide the mouse's pointer slowly over the button.

Print reports within selected groups of reports
Print the current report

Go to Monthly Assumptions Report No. 1 - Sales & Finished Goods Inventory Targets
Go to Monthly Income Statements Report
Go to 2nd & 3rd Year Quarterly Assumptions Report - Sales & Costs
Go to Quarterly Income Statements Report
Go to Annual Income Statements Report

Access graphs

Mark position of cursor
Jump back to the marked position of the cursor

Move backward one report
Move forward one report

Calculate entire model with error checking
Calculate current sheet without error checking
Go to Summary & Diagnosis Report

Clear unprotected values in assumption report row
Enter constant assumption value across remaining months/quarters
Enter incremented assumption value across remaining months/quarters
Enter assumption value changed by % across remaining months/quarters
Enter total assumption value & allocate equally across months/quarters
Allocate assumption across 12 months based on report's seasonal index

Unlock selected range
Lock selected range
Unprotect current report
Protect current report

Freeze panes within all reports

Restore default zoom for all reports
Zoom into current report by 10%
Zoom out from current report by 10%

Creating a Plan within 15 Minutes

Exl-Plan incorporates a special facility, called Quik-Plan, for producing outline projections for three years (five years with Pro, Super, Super Plus, Ultra & Ultra Plus versions) based on high-level assumptions entered into a special report (at the QUIK worksheet). It is ideally suited for producing first-cut projections or for compiling preliminary forecasts which can be fine-tuned subsequently via Exl-Plan's more detailed monthly and quarterly assumption reports.

For a full explanation of Quik-Plan refer to Section 6.4 Using Quik-Plan. See also Appendix 4 - How Quik-Plan Handles Assumptions.

The procedure below summarizes the key tasks involved in using Quik-Plan and very quickly producing multi-year projections as a Textual Summary Report. Even a new user of Exl-Plan should be able to produce first-cut projections in less than 15 minutes.

Initiating Keystrokes

Enter basic data about the business, projection start date, currency and main products

ALT+S, B

Title the new model

ALT+S, T

Save the model as a new file

ALT+F, A

Use Quik-Plan

ALT+O, Q

Save projections

ALT+F, S

View or print reports & graphs

ALT+U, ALT+N, ALT+C

Review/refine assumptions

ALT+A

View/print Textual Summary Report

ALT+U, X ALT+N, X

Exl-Plan

Comprehensive Business Financial Planner

1. Welcome to Exl-Plan

1.1. Welcome

Exl-Plan is a powerful, easy-to-use software package for preparing comprehensive financial projections, budgets, business plans etc. for one, three, five years or seven ahead. It can also be used as a tool for strategic and corporate planning, business restructuring, financial appraisals and performance monitoring within almost any size of business. Fourth and fifth year projections are available with the Pro, Super & Super Plus versions of Exl-Plan and, optional, sixth-seventh year projections can be created by the Ultra and Ultra Plus versions.

Exl-Plan is available in seven versions and in two editions using UK/International and US/Canadian accounting conventions – fourteen variants in total. They all have the flexibility to handle manufacturing, distribution and service businesses and are suitable for established businesses as well as for new ventures and strategic business units within major corporations. Exl-Plan is also ideal for use by professional advisers, consultants, training organizations, financial institutions and enterprise support agencies.

Exl-Plan is primarily a workbook file which runs on the best selling Excel spreadsheet from Microsoft®. As Exl-Plan incorporates extensive formulae and pre-programmed menus and buttons only a very basic knowledge of Excel is required to prepare highly professional and presentable projections. Because Exl-Plan is an open system, advanced Excel users can utilize their expertise to enhance and expand Exl-Plan to meet their particular needs (see Section 7 Changing Exl-Plan).

Exl-Plan requires Excel for Windows (versions 5, 7, 8, 95, 97, 2000 or XP) running with Windows 3. or Windows 95/98/NT/2000/XP on a PC with a 486/50Mhz or higher processor, 16+ MB of memory, VGA or better display and 20 MB disk space.

Exl-Plan incorporates a comprehensive range of data entry and planning facilities and features. It is suitable for managers and business people with minimal previous experience of financial or business planning as well as for experienced planners, accountants, spreadsheeters and model-builders.

1.2. Powerful & Easy-to-Use

Exl-Plan is pre-formatted to handle the very wide range of the variables and functions normally encountered when preparing financial projections. Based on the monthly and quarterly assumptions entered by the user, it compiles detailed and fully integrated financial projections for one year on a monthly basis and in less detail for a further two years on a quarterly basis. It produces dozens of pro-forma financial and management reports together with numerous graphs for key variables. Exl-Plan contains numerous facilities for accelerating the process of preparing projections and for undertaking global or specific what-if sensitivity analyses alongside scenarios created using Excel’s built-in Scenario Manager.

Exl-Plan is easy-to-use because all the formulae for financial calculations are pre-written; reports are pre-formatted and clearly laid out; menu structures follow logical sequences; and online help is available to the user at all stages. For experienced users of Excel, Exl-Plan offers a familiar environment which can be tailored and expanded to meet specialist needs and utilize existing spreadsheet-based data without the need to get involved in any extensive import/export procedures.

The time required to set-up and become familiar with Exl-Plan is less than an hour as compared with the many hundreds of hours that would be required to construct a comparable-quality financial model.

To get started, refer to Very Quick Start near the front of the manual for fast-track guidance on installing Exl-Plan; exploring its main features and facilities; and developing an initial set of projections. Ultimately, the best way to learn about Exl-Plan is to start using it in a real situation by entering meaningful assumptions, compiling and reviewing projections, printing reports and graphs etc.

1.3. Scope of Manual

This manual provides detailed explanations on all aspects of Exl-Plan and will help users make effective use of the package with the minimum of preparation. It is structured as follows:

§ Sections 2 and 3 introduce financial & business planning and Exl-Plan respectively.

§ Section 4 explains how to install Exl-Plan.

§ Section 5 describes the basics of Exl-Plan.

§ Section 6 contains detailed advice on using Exl-Plan in real planning situations and introduces its more advanced facilities.

§ Section 7 describes possible approaches to making simple and complex changes to Exl-Plan.

§ Finally, Section 8 reviews Invest-Tech's support for Exl-Plan.

New users are invited to quickly browse through the entire manual before using Exl-Plan to gain a general appreciation of its overall scope and content.

1.4. Help System

When Exl-Plan's Online Help is first loaded a conventional contents page or dialog appears depending on the version of Windows being used.

When using Exl-Plan's Help, specific procedures are displayed in separate windows that remain open and on top until closed.

Closing Help also closes any open procedural windows.

The Glossary of Terms refers to the variables used in the Monthly Assumption Reports. Its definitions provide additional guidance on entering assumptions and explanations of formulae. It supplements Appendix 5 - Guidance on Entering Monthly Assumptions.

1.5. Typographical Conventions

The following typographical conventions are used throughout this manual:

Zzzz | Zzzzzz indicates a menu option

ZZZZZZZ.XLS specifies a file name

ZZZZ refers to a worksheet name

"zzzz" refers to a toolbar button

This manual covers the US/Canadian edition of Exl-Plan and uses North American spellings and financial terms.

1.6. About Invest-Tech

Exl-Plan is the third-generation version of Invest-Tech's integrated financial planning systems. These have been developed over several years and are used by a wide variety of businesses ranging from start-ups to major companies.

Formed in 1983, Invest-Tech is an independent business and management consultancy based in Ireland and specializing in business planning & strategy, and the development of related software. It is a Registered Practice within the Institute of Management Consultants in Ireland (IMCI) and a Company Member of the Association of Shareware professionals (ASP) in the US.

Further information about Invest-Tech's other software products for business, cashflow & financial planning along with access to downloadable shareware versions can be obtained from its PlanWare website at the following URL:

www.planware.org

This site also contains details of all new versions of Exl-Plan as soon as they become available.

2. Financial Modeling & Business Planning

2.1. Introduction

This general introduction to financial modeling and business planning will be of particular interest to non-financial managers and first-time entrepreneurs.

The following topics are discussed:

2.2 Computers & Modeling

2.3 Uses of a Model

2.4 Preparing to Plan

2.5 Pitfalls & Dangers

2.6 More about Business Planning

2.2. Computers & Modeling

By means of a computer and suitable software, a mathematical model of a business's finances can be constructed to help prepare its financial projections. A computer-based model reduces the tedium of carrying out numerous repetitive calculations and simplifies the alteration of assumptions and the presentation of results.

Financial models are used to compile forecasts and budgets; to assess possible funding requirements; and to explore the likely financial consequences of alternative funding, marketing or operational strategies. They can also be used for business planning, investment or funding appraisals and for financial analysis. Used effectively, a model can help prevent major planning errors, identify or evaluate opportunities, attract external funding, provide guidance, evaluate financial and development options, monitor progress etc.

A model utilizes assumptions on sales volumes, prices, operating costs, funding etc., to produce projected balance sheets, income statements and cashflow statements. Typically, it makes monthly projections for the first year and less detailed projections for the following years.

A model, like Exl-Plan, can handle most types of variables normally encountered in financial planning. It is the electronic equivalent of a book of reports. Each page (worksheet) contains variable descriptions in the left-hand column, titles along the top, and, in the middle, space for inputting hundreds of assumptions and holding thousands of formulae. The computer's screen serves as a small window on this electronic book as illustrated in the following simplified diagram.

Note that the left-hand column and upper title rows are frozen and stay in view when scrolling around the model.
a = assumptions f = formulae

Because a model is fully integrated, resides in the computer's memory and all its assumption variables are linked by formulae, a change to any assumption will alter all dependent values throughout the model when it next recalculates. For example, a change to an interest rate in the third month of the first year will have an impact on the projections for the remaining months of that year and throughout the following years.

2.3. Uses of a Model

Initial assumptions can be readily altered to evaluate alternative scenarios. For example, a model could be used to:

§ Explore the extent to which future sales can be increased while holding borrowings within predetermined limits.

§ Assess the effects of varying selling prices and/or volumes on net income.

§ Determine the optimum level and mix of future funding for a business.

For the management of an existing business, or promoters planning a substantial new venture, financial modeling can be an invaluable tool to assist the preparation of a business plan. However, business planning should not be confused with the preparation of financial projections. Sound planning should provide the basis for financial projections that can be derived arithmetically by a model. A financial model and its forecasts should contribute to, but never dictate, the contents of a business plan.

Once basic issues relating to markets, sales and operations have been fully researched and reviewed, a model can be used to generate the financial projections.

2.4. Preparing to Plan

Before using a financial model to help plan the future of a business, a manager or entrepreneur should:

§ Decide at the very outset on the central purpose of the modeling exercise (raise funds etc.); the target audience (co-directors, financial institutions etc.); and the time horizon (one year etc.).

§ Identify and think through all the critical assumptions. Prepare outline projections to confirm their overall direction, examine the critical elements in detail and consider strategic issues relating to sales, profitability, funding etc. The Quik-Plan facility (see Section 6.4 Using Quik-Plan) within Exl-Plan is ideal for preparing first-cut projections that can be progressively refined and expanded.

§ Check that all key assumptions (e.g. sales forecasts) and data (e.g. opening balance sheet and any prior-year financial results) are to hand and have been adequately researched.

§ Recognize the danger of presenting too much detail or too many reports. Most senior managers, investors and financiers seek simple financial statements, which they can readily see to have been based on detailed analysis and realistic assumptions. Detail can be provided on request or relegated to appendices in a report or business plan. Make use of Exl-Plan's summary reports, including its Textual Summary Report, and numerous graphs to present the highlights of a plan or projections.

2.5. Pitfalls & Dangers

The veracity and usefulness of these projections will be completely determined by the quality and reliability of the underlying assumptions. For example, if sales or cost forecasts are unrealistic or inadequately researched, then the value of a model's output is greatly diminished. An impressive set of financial projections is of little benefit if unsupported by research or simply based on speculation or wishful thinking.

When preparing financial projections, be conscious of the following pitfalls and dangers:

¨ Using financial forecasting as a substitute for business planning

¨ Ignoring historic trends at business, sectoral and national levels

¨ Overstating market shares and growth, sales forecasts, and profit levels

¨ Underestimating costs and delays likely to be encountered

¨ Disregarding industry performance norms and competitors' responses

¨ Breaching generally-accepted financial guide lines and ratios

¨ Making unduly optimistic assumptions about the availability of loans, trade credit, equity etc.

¨ Seeking spurious accuracy while ignoring matters of strategic importance.

These problems can arise a