(1) Capital Requirements: The company is seeking an investment in the form of either equity or debt in the amount of $XXX,XXX (Section is optional)
(2) Important Assumptions
Nature and Limitation of Projections. This financial projection is based on sales volume at the levels described in the revenue section and presents, to the best of management's knowledge and belief, the company's expected assets, liabilities, capital, revenues, and expenses. The projections reflect management's judgement of the expected conditions and its expected course of action, given the hypothetical assumptions.
Revenues: The company's revenue is derived primarily from subscriptions. Revenue projections are based on the 1999 sales in the comparable market nationwide, based on industry average. The exact numbers can be found in the Sales Forecast table and chart section.
Expenses: The company's expenses are primarily those of salaries, sales commissions, and administrative costs. Other expenses are based on management's estimates and industry averages.
(3) Break-even Analysis: This is how much money you plan to make over the course of the next 3-5 years and how much money you will spend. The difference is the profit margin and on a graph you will see the break even point.
Once you have the above, anyone reading should have a general idea of the profit potential in your business. Added and more detailed projections can be added by including:
- Projected Profit and Loss Statements
- Projected Cash Flow Statements
- Projected Balance Sheet and
- Business Ratios
The length of the financial projections section of your plan is entirely up to you or the entity demanding the projections. If you need assistance with forecasting sales or expenses, email, text, or call today to talk shop.