Key Assumptions Page

Here you need to demonstrate a thorough understanding of the factors that underpin your business's success and the measures taken to manage associated 🔍

This page serves to outline the critical assumptions that underpin your business plan and financial projections. It helps stakeholders understand the underlying factors that can impact the success of your business 🧠

(1) Assumption Identification

Identify and list the key assumptions that drive your business plan. These can include market factors, customer behavior, industry trends, regulatory changes, technological advancements, and any other significant variables that may impact your business's performance.

(2) Rationale and Justification

Provide a clear rationale and justification for each key assumption. Explain the reasoning behind each assumption and support it with relevant data, market research, industry analysis, or expert opinions. This helps build credibility and demonstrates that your assumptions are well-founded.

(3) Sensitivity Analysis

Conduct a sensitivity analysis to assess the potential impact of changes in your key assumptions on your business's financial projections. Identify the assumptions that are most sensitive and explore different scenarios to understand the range of outcomes. This analysis demonstrates your understanding of the risks associated with your assumptions and provides insights into the potential resilience of your business model.

(4) Monitoring and Updates

Describe how you will monitor and update your key assumptions over time. Set up mechanisms to track relevant market indicators, industry trends, and changes in the business environment. Regularly review and reassess your assumptions to ensure they remain valid and relevant. This proactive approach enables you to adjust your business strategies accordingly.

(5) Risk Mitigation

Address the risks associated with your key assumptions and describe strategies for mitigating those risks. Identify potential alternatives or contingency plans that can be implemented if any assumptions prove to be inaccurate or change unexpectedly. This shows stakeholders that you have considered potential challenges and have plans in place to manage them effectively.