Entrepreneurs Are Worse At Financial Projections than You Think

Entrepreneurs Are Worse At Financial Projections than You Think  - http://www.bnet.com Avatar Posted by JohnH under Startups
From http://www.bnet.com 4728 days ago
Made Hot by: HomeBusinessMedia on May 19, 2011 9:14 pm
Entrepreneurs are way too optimistic about the early success of their ventures, according to a study from the University of Cologne in Germany. Researchers found that new business owners tend to overestimate their expenses, revenues and profits for the first five years. The researchers said revenue projections were overestimated by an average of 388%.





Comments


Written by suzyQ
4728 days ago

I noticed the companies were backed by VC firms. That may have caused the founders to inflate the numbers a bit.



Written by GPorter
4728 days ago

I'll admit I was way off at first, but not by 388%! At least they were thinking big.



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