… in the future we will do this …
What are Milestones?
Milestones look forward to tell the investor what to expect from your business in the future and when to expect it. They are significant events that you think your business can achieve which will indicate that it is moving forward according to plan.
Milestones are significant in that they serve to monitor progress, and investors may even link funding to milestones being achieved. For example, funding might be released in stages dependent upon a certain milestone being reached, alternatively the equity percentage required by the investor for the funding might be reduced if a milestone target is met.
The milestones chosen will ultimately depend on the current stage of development of your business, for example they might include the date on which any of the following occur:
- Minimum viable product released
- Website operational
- Incentive plan drawn up
- New COO recruited
- Pitch deck produced
- Funding obtained
- Visitors, signups, paying customers reach a certain level
Business Milestones Chart
There is no set style to the milestone section. The example below uses a chart format for a five year period and breaks down the first year into quarters. Each row of the business milestones chart represents a significant event. Presenting each the milestone in this format helps investors to see what the event is and when they can expect it to have been achieved.
This is part of the financial projections and Contents of a Business Plan Guide, a series of posts on what each section of a simple business plan should include. The next post in this series is about the size of the market for the business plan idea.
About the Author
Chartered accountant Michael Brown is the founder and CEO of Plan Projections. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.