FINANCIAL PROJECTIONS

If you are trying to get started

A financial projection is the heart of any business launch.  It’s what you need to do first, to figure out how much money you will need to launch, how long it will take you to get to breakeven and whether or not the business you are thinking of starting will even make the money you need it to make.  If this sounds daunting, then you need to work with us.  We will get your numbers, and you, on your feet in no time.

All financial projections include a Zoom workshop to detail your business model.  In this workshop, we will work with you clarify your revenue goals, define your costs and determine your expenses.  We will use this work to develop a 3 year, by month, financial projections along with an assumptions document that details how your numbers were determined.

Zoom Workshop (All levels)

In the Zoom workshop, we will discuss your business to develop the following information:

• How much you need the business to make to support your life or meet your objectives
• What the revenue streams, average transaction size and the annual revenue will be
• How much each product or service costs you to acquire or make (Cost of Goods Sold)
• What your expenses will be
• The operational flow of your business (Gold / Sliver)
• Discussion of your product or service offering (Gold / Silver)
• Who your competition is (Gold / Silver)
• Who your customer is and how you’re going reach them (Gold)
• Who will be working in your business and their job or role (Gold)

The amount of time for your session is determined by the amount of detail we will need to complete the work, but don’t worry, we will take all the time we need to make sure the job is done right!

Bronze level spreadsheet example

Three Year, By Month, Financial Projection (All levels)

Complete with summary, the financial projections detail the revenue, cost of goods and expenses of your business.  If you are getting a loan, the payment can be calculated to arrive at pre-tax income.

The number of revenue streams is determined by the level projection that you purchase.

Click on the thumbnail to enlarge.

Three Year, By Month, Sales and Cost of Goods Forecast (Gold level)

Sales and Cost of Goods Forecast for an Event Center

Banks like forecasts because it gives them better understanding of the logic used to create the projection.

Sales and Cost of Goods Forecast allows for more accurate financial models.  Revenue and costs can be finely controlled by quantity, number of days in a period or seasonality.   Forecasts are also useful when revenue streams start (or stop) at different times, if there are going to be a series of rollouts or when costs vary due to season or sourcing.

Click on the thumbnail to enlarge.

Assumptions Write Up (All levels)

Gold Level Assumptions Write Up

The assumptions write up documents how you arrived at your numbers.  It’s important to detail the basis of your projections so the logic of your numbers can make sense to others.  It provides the factors you used to create your numbers and logic to justify them.  Without detailed assumptions, the bank will have to guess at how you arrived at your numbers, or they will apply standard ratios for your business which may, or may not, help your case.

Click on the thumbnail to download an actual, redacted, Gold level assumptions write up.