Entrepreneurship Research Guide : Projecting Financials
This guide is a collaborative effort between the Wisconsin School of Business and the Business Library.
- Start with a sales forecast - 3 years
- Create an expenses budget
- Develop a cash-flow statement
- Income projections
- Deal with assets and liabilities
How much profit will you earn? When?
- What percent of your total costs are variable?
- What percent of your total costs are fixed?
- What is your contribution margin for each month, year and/or product?
- What is your contribution margin as a % of sales?
Describe your financial projections
- What are the assumptions behind your revenue projections?
- Make sure you document those in your projections