ENTREPRENEURSHIP SERIES: USING REALISTIC ASSUMPTIONS CAN BE TRICKY, BUT VALUABLE

Over the years I have written many business plans and created countless financial forecasts for startups and early-stage companies. One of the most difficult aspects of creating a financial forecast is identifying realistic assumptions. The earlier the stage of development of the company, the more difficult it typically will be to make reasonably accurate assumptions. Depending on the main purpose of the financial forecast, or the business plan that the…

Market Psychology and the Risk of Compacency

With the markets reaching new all-time highs, I thought it would be worthwhile to consider how far the markets have run from the lows after the “Great Recession” of 2008/2009. The S&P 500 bottomed out at 666. As of today (August 27, 2018), the S&P 500 is trading at about 2,890, which represents a 333% gain since March of 2009. We can review multiple metrics to try to determine if…