A retirement schedule is vital to every business plan

Each business concept contains brilliant ideas or elements. Unfortunately, great ideas are not enough to produce great business. I’ve seen hundreds of great ideas, but few of those great ideas end up creating a new business because many “prospective” business owners lack the experience or expertise to successfully manage their great cash-rich business concepts.

Go ahead, develop your business concept. Identify and consult all the essential professionals for the project [accountants, lawyers, engineers, designers, architects, builders, and trades ]. You will now have a clear understanding of what it takes to complete your project implementation.

It has obtained competitive quotes on the costs that each profession must charge for its professional work, the contributions of the different trades and the materials for each task and stage of the entire job. So eventually, you’ve gathered all of this information along with your project manager’s schedule plan. You can now put each task, stage, and the corresponding cost in a timeline format.

So the retirement schedule brings together each task, the cost of that task or stage, and the time in which the work will be completed. These are the 3 elements of a reduction schedule.

When all of this is complete, you can now quantify the retirement schedule, where you must pay each contractor or professional as they complete the stages of your project.

How to do this? Create a timeline with markers at regular intervals, indicate each month of the project implementation phase. [Tip: Number the first month of project implementation as Month 1 etc. Therefore, if there are delays in starting, you don’t have to re-write the spreadsheet.]

Now locate each component of your project on that timeline, show when each part of the task should start and when it should finish. You may find this to be quite complex. If you are doing this on paper, it may take a few tries to finish. This will depend on the complexity of the project implementation.

If you are recording the timeline on a computer, you may need to reorder the information several times to get everything in order. Now draw on this axis of the timeline a place for the expenditure of each component of the work. When this is done for each part of the project, it will be worth $$$ for the amount of capital needed to pay for all the work. Be sure to include the costs of accessing investment financing, fees to pay, etc.

When you identify the amount of capital that you and your fellow shareholders have on hand at the beginning, you will be able to identify when you will need to access an investor’s funds to continue the development program.

Now your “reduction program” is complete. This is vital information to provide us as we prepare your winning business plan. His detailed work demonstrates to the investor that he understands the complexity of all project dimensions and that he has thoroughly prepared for the implementation phases of his new business venture.

A quality business plan not only sells your investment opportunity to an investor, it also demonstrates your competence. The investor will place a great value on his capacity and preparation, as he will on the profitability or the impact of the project.

Make sure to use great professionals to make sure your great idea turns into a successful startup in every way!

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