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Worst case scenario business plan

The path you take your business will have many twists and turns. Financial forecasts and strategic plans are the tools of choice for most businesses trying to identify the right route. This maze of possible futures makes any single financial forecast irrelevant. Real-life always makes a mockery of your attempts at predicting it. A more flexible and dynamic approach is needed.
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Weighing best-case and worst-case scenario

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business - Worst-Case Scenario

Scenario planning , also called scenario thinking or scenario analysis , [1] is a strategic planning method that some organizations use to make flexible long-term plans. It is in large part an adaptation and generalization of classic methods used by military intelligence. The original method was that a group of analysts would generate simulation games for policy makers. The methods combine known facts about the future, such as demographics , geography , military , political , industrial information, and mineral reserves , with key driving forces identified by considering social, technical, economic, environmental, and political STEEP trends. In business applications, that sole emphasis on understanding the behavior of opponents was reduced shifting more toward a game against nature.
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The 4 Types of Business Plans

Whether you own a growing startup or a multi-generational family legacy, business owners understand that planning for the future is key in reaching business goals. While there are certain factors we actively plan for, including revenue goals, strategic growth plans and the future state of the company, there are other unknowns that require just as much planning. It is important to run through the tough questions about what you want to happen to your business if you have to exit your business prematurely.
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This story appears in the February issue of Entrepreneur. Subscribe ». When Flight 77 slammed into the Pentagon on September 11, the 37 employees at Children's World Learning Center, the Pentagon's day-care facility, knew exactly what to do. They calmly led the kids out of their building, situated near the Pentagon, to a safe location.
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