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Financial Planning For A Recession

YoungUpstarts

You should already be familiar with your key business drivers through a forecast sensitivity analysis – use this information to plan what to do in the instance of a negative shock, so that your decision making can continue to be swift and precise. This is the time to get ahead of your competition in terms of gaining market share.

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Should you include your sweat equity in a business plan?

Berkonomics

It extends the cash available for research and other necessary fixed costs and gives the fragile, young company more “runway” to get to breakeven. But that is a messy way to demonstrate that you are taking less than market wages from your company. Investors love it when entrepreneurs draw little or no money from their startups.

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Include your labor value in your plan.

Berkonomics

It extends the cash available for research and other necessary fixed costs and gives the fragile, young company more “runway” to get to breakeven. But when forecasting the ultimate viability of a business, many times an entrepreneurial founder uses a low, unsustainable salary rate for him or herself in order to show early breakeven.

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