Creating Realistic Financial Projections for Your Small Business
Date and time
-
Location
Online
Organizer
SCORE Greater Wichita
olivia.depperschmidt@scorevolunteer.org
316-269-6273
Host organization
SCORE Greater Wichita
Type of event
Resource Partner event
Event description
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, and secure funding
- Use as a roadmap to assessing the feasibility of your plan
Components of Financial Projections
- Sales Forecast: Predicting future sales based on market research and historical data
- Expense Forecast: Estimating fixed and variable costs over time
- Cash Flow Projection: Projecting inflows and outflows to ensure liquidity
Creating the Projections
- Steps: Gathering data, making assumptions, and applying forecasting methods
- Tools and Software: Use of a SCORE provided EXCEL spreadsheet model to generate a projection
- Importance of recording assumptions and revisiting and adjusting projections regularly
Using Projections to Monitor Performance
- Comparing actual results against projections to measure performance
- Identifying variances and reasons behind them
- Making informed adjustments to strategies based on analysis