Achieve comprehensive financial planning with our 'Financial Projections Template for Business Plan'. Streamline revenue, costs, forecasting, analysis, approvals, and more.
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Identify and list down all potential revenue sources
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Estimate the unit price for each product or service
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Calculate the total revenue
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Identify and estimate all operating expenses
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Calculate total operating expenses
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Identify all fixed and variable costs
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Estimate the break-even point
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Create a balance sheet
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Prepare a cash flow statement
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Create a profit and loss statement
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Determine financial ratios and KPI's
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Forecast future financial performance
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Conduct sensitivity analysis
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Approval: Financial Controller review of projections
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Revise projections based on feedback
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Prepare final financial projections report
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Approval: Chief Financial Officer review of final report
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Present final report to stakeholders
Identify and list down all potential revenue sources
This task involves identifying and listing down all potential sources of revenue for the business. Think about all the different ways the business can generate income, such as product sales, service fees, subscription fees, licensing fees, or advertising revenue. Consider both primary and secondary sources of revenue and any potential new revenue streams that could be explored. This task is important as it lays the foundation for the financial projections and helps in determining the overall revenue potential of the business.
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Primary
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Secondary
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New
Estimate the unit price for each product or service
In this task, estimate the unit price for each product or service offered by the business. Consider factors such as production costs, market demand, competition, and pricing strategies. The unit price is important as it directly impacts the revenue calculation and helps in determining the profitability of each product or service.
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Production costs
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Market demand
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Competition
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Pricing strategies
Calculate the total revenue
This task involves calculating the total revenue based on the unit price and the quantity sold for each product or service. Multiply the unit price with the quantity sold to determine the revenue generated. The total revenue is a key metric to assess the financial performance of the business.
Identify and estimate all operating expenses
In this task, identify and estimate all the operating expenses of the business. Operating expenses refer to the costs incurred in the day-to-day operations of the business, such as rent, utilities, salaries, marketing expenses, and office supplies. It is important to consider all the relevant expenses to ensure accurate financial projections.
Calculate total operating expenses
This task involves calculating the total operating expenses by summing up all the identified and estimated operating expenses. Add up all the expense amounts to determine the total operating expenses. The total operating expenses are crucial in assessing the overall financial health of the business.
Identify all fixed and variable costs
In this task, identify all the fixed and variable costs associated with the business. Fixed costs are expenses that remain constant regardless of the level of production or sales, such as rent or salaries. Variable costs are expenses that vary with the level of production or sales, such as raw material costs or packaging costs. Identifying and categorizing the costs correctly is important for accurate financial projections.
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Fixed
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Variable
Estimate the break-even point
The break-even point is the level of sales or revenue at which the business neither makes a profit nor incurs a loss. In this task, estimate the break-even point by dividing the total fixed costs by the contribution margin per unit. The contribution margin per unit is the difference between the unit price and the variable cost per unit. Estimating the break-even point helps in understanding the minimum sales or revenue required to cover all the expenses.
Create a balance sheet
A balance sheet is a financial statement that provides a snapshot of a business's financial condition at a specific point in time. In this task, create a balance sheet by listing all the assets, liabilities, and owner's equity. Include both current and long-term assets and liabilities. A balance sheet is important for assessing the financial health and solvency of the business.
Prepare a cash flow statement
A cash flow statement is a financial statement that shows how cash flows in and out of a business over a specific period. In this task, prepare a cash flow statement by categorizing the cash flows into operating activities, investing activities, and financing activities. Include details such as cash receipts and payments from sales, investments, loans, and other financial activities. A cash flow statement is important for assessing the liquidity and cash management of the business.
Create a profit and loss statement
A profit and loss statement, also known as an income statement, is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period. In this task, create a profit and loss statement by listing the revenues, operating expenses, and other income or expenses. Include details such as sales revenue, cost of goods sold, salaries, and marketing expenses. A profit and loss statement is important for assessing the profitability and financial performance of the business.
Determine financial ratios and KPI's
In this task, you will determine financial ratios and key performance indicators (KPIs) for your business. Financial ratios and KPIs are quantitative measures that provide insights into your business's financial performance and health. Consider ratios such as liquidity ratios, profitability ratios, and efficiency ratios when determining financial ratios and KPIs. How do these ratios and KPIs help you assess your business's performance and make informed decisions? Are there any benchmarks or industry standards that you can compare against?
Forecast future financial performance
In this task, you will forecast the future financial performance of your business. This involves projecting revenues, expenses, and resulting net income or loss for future periods. Consider different scenarios, assumptions, and external factors when forecasting future financial performance. What are some key drivers or variables that will impact your business's financial performance? How do these projections align with your business goals and strategic initiatives?
Conduct sensitivity analysis
In this task, you will conduct a sensitivity analysis for your business's financial projections. A sensitivity analysis involves assessing the impact of different variables, assumptions, or scenarios on your financial projections. Consider factors such as changes in sales volume, pricing, costs, or market conditions when conducting the sensitivity analysis. What are some key sensitivities or risks that you should consider? How do these sensitivities impact your business's financial performance or viability?
Approval: Financial Controller review of projections
Will be submitted for approval:
Calculate the total revenue
Will be submitted
Calculate total operating expenses
Will be submitted
Estimate the break-even point
Will be submitted
Create a balance sheet
Will be submitted
Prepare a cash flow statement
Will be submitted
Create a profit and loss statement
Will be submitted
Determine financial ratios and KPI's
Will be submitted
Forecast future financial performance
Will be submitted
Conduct sensitivity analysis
Will be submitted
Revise projections based on feedback
In this task, you will revise your financial projections based on feedback received from stakeholders or advisors. Feedback can help identify any errors, biases, or assumptions that need to be addressed in your financial projections. Consider both qualitative and quantitative feedback when revising your projections. How can you refine your projections to better reflect market conditions or business realities? How will you incorporate feedback into your decision-making process?
Prepare final financial projections report
In this task, you will prepare the final financial projections report for your business plan. This report will summarize and present your financial projections, including the balance sheet, cash flow statement, profit and loss statement, and key financial ratios. Consider the format, structure, and audience when preparing the final report. How can you present the information in a clear, concise, and visually appealing manner? What are some key insights or conclusions that should be highlighted in the report?
Approval: Chief Financial Officer review of final report
Will be submitted for approval:
Prepare final financial projections report
Will be submitted
Present final report to stakeholders
In this task, you will present the final financial projections report to stakeholders, such as investors, lenders, or management. The presentation should effectively communicate your financial projections and key insights to stakeholders. Consider the format, content, and delivery method when presenting the final report. How can you engage and involve stakeholders in the discussion? What are some potential questions or concerns that stakeholders may have?
