Business Plan Forecasting Timeframe
How long should you forecast financials for a business plan? The Enloop Business Plan Writing app allows you to write your business plan based on three different timeline models to create a three-year forecast. The models increase from simple to more complex. The amount of detail you put into the forecast (and get out of it) is up to you. The more detailed your forecast, the more control you have over understanding and managing your cash flow, debt and profitability.
Here are the three forecasting models you can choose from...
3-Year annual forecast
This is the simplest of the three models. You input an annual number for each of your three-year forecasts. The downside is that you don't have any insight into your cash flow on a monthly basis. This model is available at Enloop's Free membership level.
12-Month forecast, plus Annual forecast for Year 2 and Year 3
This timeframe allows you to enter monthly details for the first twelve months, then an annual entry for Year 2 and Year 3. This allows you to better understand your cash flow for the first year. This model is available at Enloop's Basic membership level.
This allows you the most detailed planning by entering monthly details for 36 months of forecasting. You have a much more granular understanding of you company's cash flow and can better management your debt and net profitability. This model is available at Enloop's Advanced membership level.