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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. When creating a plan, work through a variety of scenarios, from the best to the worst.

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Should you include your sweat equity in a business plan?

Berkonomics

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. But the tax effect would be the same if audited – you would owe tax on the booked value even if not paid in cash. What is the solution?

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Include your labor value in your plan.

Berkonomics

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. But the tax effect would be the same if audited – you would owe tax on the booked value. And that is the quandary for investors.

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