Writing a Business Plan: Lesson 5
Financial Projections for Your Business Plan
Thomas Tate discusses the most important part of your business plan: Financial projections.
Topics:
- Things You Need to Know Before
- How to Begin
- Why Create Financial Projections?
Test Your Knowledge
To receive credit for taking this course through TSBDC, watch the video and take the quiz that will appear below to demonstrate your knowledge.
Video Lesson Topics
- 0:23
- Things You Need to Know Before
Your financial projections are an estimate; they are not real numbers. It is a prediction of what you think your expenses or revenue is going to be. Your expenses and revenue is a part of your income statement. Depending on what your revenue and expenses are, it also includes net income or net loss.
- 1:06
- How to Begin
When writing your financial projections, start with your expenses. You should know your expenses, or at least have an idea of what they will be. Be conservative with your expenses. For example, if you assume your utilities will cost $200, write down $300. It is better to overestimate your expenses in order to be prepared. Once you have completed your expenses, it is time to predict what your revenue will be. Underestimate your revenue. For example, if you expect to sell 2,000 units a day, write down 1,500. Write your financial projection to show success. If your success will come in 3 years, then make it a 3 year projection.
- 2:55
- Why Create Financial Projections?
Creating a financial projection shows you the future success of your business. It is beneficial for yourself, and to show other people. Other people can give you feedback of whether or not your projections are in line, or if they will need changed. Your first projections will not stay your projections. They should always change as your knowledge grows.
Topics & Lessons
Each Below Topic Contains a Video Lesson and Helpful Downloadable Information
Why Write a Business Plan?
Business Plan Format/Templates
How To Develop a Business Plan
Marketing For Your Business Plan
Financial Projections for Your Business Plan
Writing A Business Plan For Your Existing Business
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