How do you make a business plan projection for next year after such a bad year compared to 20 good years? -

I am trying to make sales projections for a business loan to expand and can not figure how to base my numbers...on a good year, average year or this years actually sales?

Try making a few projections, a pessimistic (match this year or even reduce sales 5%, a Realistic - what you really think it will do, and a optimistic perhaps your realistic projection plus another 12 percent or so. Look at the various scenarios and be sure you can service your debt.

The most rational way to do this, Kathleen, is to create a 3-tiered business plan that projects several different scenarios: slow, medium and great. As you craft these plans, you will end up with a strong idea of places where your business can be flexible depending on how the year actually goes.Your bankers for the expansion loan will almost surely require you to use this year s actual sales, but I suggest adding another sheet with three or five years of data. Since 2008 and earlier will be better than this year, those numbers can help you snare the loan. Most bankers require multiple years of financial information anyway.