Where do your financial projections come from? Your knowledge of your business and industry, and your best estimates of what might happen.
- Purpose of Financial Projections:
- Use to plan, set realistic goals, and secure funding.
- Use as a roadmap to assessing the feasibility of your plan.
- Importance in developing investor confidence & improving internal decision-making.
- Components of Financial Projections:
- Sales Forecast: predicting future sales based on market research & historical data.
- Expense Forecast: estimating fixed & variable costs over time.
- Cash Flow Projection: projecting inflows and outflows to ensure liquidity.
- Creating the Projections:
- Steps: gathering data, making assumptions, & applying forecasting methods.
- Tools and software: use of a SCORE provided Excel spreadsheet model to generate a projection.
- Importance of recording assumptions & revisiting and adjusting projections regularly.
- Using Projections to Monitor Performance:
- Comparing actual results against projections to measure performance.
- Identifying variances & reasons behind them.
- Making informed adjustments to strategies based on analysis.
This is the third in a series of 3 consecutive finance webinars offered on Saturday, May 10, 2025. Please register for each class you plan to attend.
Faculty: A team of SCORE and community volunteers with wide ranging business and financial experience.
