Money Worksheet

What should be in a Financial Projection Worksheet?

Hello, was wondering what i should put in a financial projection worksheet in my business plan. What are the catagores.. i.e Future money? dates, like what are the professional categoris that i need to put? i dunno... any input gladly appricieated rich

Public Comments

1. You need and entire financial budget (budget means future projection) generally going out at least 3 years done on a monthly basis. I hope you have some accounting skills or you may have a hard time following this. Your goal is to produce an income statement, balance sheet and cash flow statment all for a minimum of three years, if looking for a loan from a bank or venture capital firm, they may require even larger time periods like up to 8 years out. Although 3 should be good for most investors, banks and even yourself. There will be several pages to this budget, I suggest creating it in microsoft excel. First part Ok first page of your budget is the sales budget. For every item or service you offer list it with its estimated number of sales followed by selling price then multiply to get the total. Second part List the variable costs associated with each service or product budget just like above. The budget above is the exact same but instead of using selling price use variable cost,(cost of goods sole if product business, cost of services render if service budget) the cost you pay per item u sell. This budget will allow you to get to gross profit on sales. Third part List the rest of your expenses in any order but broken up like this, Start up expense budget (lists equipment, land, building, patents, trademarks, incorporation fees, anything associated as an expense that would be paid before your doors open that is not a usual expense, rent would not go here), Labor budget (lists employee costs, including your own pay), Occupancy buget (all costs associated with the building in which you do business like rent, property tax, utilities, and maitenance), marketing budget (all advertising costs like cost of copies for fliers, or yellow page ad's), then your operating budget (depreciation and amortization expenses, other fees or expnses not listed anywhere else that you may have). Always try to stay on the conservative side with estimates and not a bad idea to make a miscellaneous espense account to offset some places you may have underestimated. NOTE be sure costs do not overlap in the product/service cost budget on any of the expense budgets. Fourth part Then from there you make you income statment, balance sheet and chash flow statemnt after you have all the accounting data. Fifth part Then the last part is to make a list of the assumptions you made in the budgets preperation, like the consistent month over month growth you estimated in sales. what is that estimate, in percent terms? Suggested sixth part Also you could make and income statement bar chart (I suggest you do) to show income versus expenses the income should be stedily growing with time and the expenses whould be fairly constant, but also growing evenly as time gose by, this bars should not be jumpy from month to month, you would look crazy if anyone saw it. Other tips/pointers (read option 6th part for pointers too) Oh, usualy anticipate a loss for the first year (income can exceed expenses in a months twords the end of the year but so long as the total for all months in first year is a loss). people will thing you don't know what you are taking about if you think you are so hot you can turn a profit off the bat. This process take lots of time because you need to reseach your expenses to get accurate estimates, but it is really worth it even if you are just using it for personal reasons and not looking for an investor or a bank loan.