What is in a Business Plan: Financial Projections (Part 11 of 11)

Financial Projections from the Startup Garage
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Time For Completion: Approximately 35 hours

Financial statements are a very important part of your business plan.

They give you an idea of how your business would be performing according to the market assumptions and the business model you choose.

Ask somebody already in the business, or call service providers and ask them how much it will cost. This is great to start building your financial model.

Whats in it?

The Financial Projections section should include an Excel spreadsheet that can help you in preparing your projections. It usually includes key metrics such as the startup expenses, marketing goals, unit sales and costs, personnel, P & L, cash flows and finally it includes the balance sheets. The first years projections are prepared month by month, then annually for the following two to four years.

Why its Important

Your financial projections give you an idea of how your business should be doing at any moment in time. It also shows your potential investors how you will be profitable over time.

You have to be as realistic as possible in estimating your startup initial costs as they will determine how you will start your business as well as your expected profits. A business can easily fail if they honestly believe that they will sell more product and services than their market research suggests is possible. Therefore, financial statements in a business plan should always be conservative so they are believable.

Ask somebody already in the business, or call service providers and ask them how much it will cost. This is great to start building your team and determines how much cash you need to reach profitability.


Whether you have a question about Business Plan Financial Projections or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!

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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.