Fiancial Plan Length

Re: Fiancial Plan Length

We take ours out to 3 years, after that it is too difficult to forecast. Plus as a small business we are more worried about next year than three years out.

Re: Fiancial Plan Length

I think having a five year plan is a waste of time for a small business. Most will not be around to see if they make it to the 5 years. What we suggest to clients is to have a budget year - year 1 and a forecast year - year 2 if they want to go out beyond that we tell them to straight line it.

Re: Fiancial Plan Length

I think anything after a year for a small business is a waste of time things are changing so rapidly especially for a new business.

Re: Fiancial Plan Length

Advice2;30599 wrote: I think having a five year plan is a waste of time for a small business. Most will not be around to see if they make it to the 5 years.

Very optimistic 🙂

If no long term plan, then the probability to have the above case increases, I think.

Re: Fiancial Plan Length

I was using 5 yrs for my own use, but since lenders prefer 3 yrs I've been sticking with that. It's difficult enough to forecast for 3 yrs with any accuracy. Five is just not necessary for most needs.