Fundraising · Financial analysis

Should I include a section in my business plan that spell out valuation and ROI?

Calvin C.S.C.S Health and Wellness Educator

October 3rd, 2016

I have a business plan template which includes a valuation section which spells out ROI, NIAT, NPV and gives a percentage or the return on the investment.  My question is this standard practice for a startup?  Do anyone have a good business plan template for handling the financial section?
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Dane Madsen Chief Operating Officer at Comivo, LLC

October 3rd, 2016

Not really - those are subjective indicators and have so many variables, unless you are a financial type with the background, you can get them wrong fairly easily.  They are useful in acquisition analysis but that is not your likely audience. 

Martin Omansky Independent Venture Capital & Private Equity Professional

October 3rd, 2016

(1) Valuation discussion is not appropriate in a private company business plan - doubly so for early stage companies. Don't waste time on it - including internal discussion. Sent from my iPhone

antony May Founder/CEO at Founder/ CEO of Andron Ltd

October 3rd, 2016

Hey Calvin. We can connect and share some ideas.
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John OHanlon Owner of Banks Printers

October 4th, 2016

From an investors point of view it is good to show potential ROI but being able to predict ROI accurately could be a change especially with fledgling startups.

Howard Glase Managing Partner

October 3rd, 2016

Hi, Live plan is a good user friendly model for entering in all your line items towards expenses, revenue, financing and taxes. Has allot of variable for you to adjust and a good FYI section. It's cheap as well. It puts out P&L Cash flow, and numerous other charts. Down side is that it does not export to Excel. I enjoyed the flexibility and my accountant thought it was effective to communicate my plan.

Burke Franklin

October 7th, 2016

I developed the BizPlanBuilder business plan software template.
We include valuation, ROI (a complete investor deal evaluation) for YOUR edification -- to better understand your deal and give you a basis for funding negotiations, but NOT to give your investors. They will ask you what you think your deal is worth, so now you'll have a ballpark...
BizPlanBuilder includes Excel based financial models I think you find very flexible and easy to use -- it also presents well to investors.
We also include Sensitivity Analysis (best/worst case) making it easy to run what-if? scenarios.