Microsoft Powerpoint Financial Projections986

8/12/2019 Microsoft Powerpoint Financial Projections986

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The Successful Business Plan:Secrets & Strategies

by Rhonda Abrams

Fourth Edition

Published by

The Planning Shop

Palo Alto, California

The Financials


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Numbers are merely

the reflection of

decisions you make

Key Financial Documents

Income statement (also called P&L)

Cash-flow projection

Balance sheet


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Other Financial Forms

Sources and use of funds

Break-even analysis

Start-up costs

Assumption sheet

Some Key Terms:

Gross sales total sales before any costs

Net sales sales after commissions and returns

Cost of goods (COG) cost of inventory,materials

Gross profit -- income before operatingexpenses

G & A operating & administrative expenses Net Income/Net Profit income/profit after all

expenses/costs


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$25,000NET PROFIT

($5,000)(Provision for Taxes)

$30,000Net Income Before Taxes

($35,000)(Expenses)

$65,000GROSS PROFIT

($23,000)(Cost of Goods)

$88,000Net Sales($12,000)(Commissions)

$100,000GROSS SALES

Guidelines forPreparing Financials

Be conservative

Be honest

Dont be creative

Get accountants advice

Follow industry practices Choose appropriate accounting method

Be consistent


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Things take longer

and cost more than planned

Prepare the FinancialWorksheets

Enter figures from earlier worksheets (e.g.,marketing budget, staffing costs) intoappropriate lines on each worksheet

If using Electronic Financial Worksheets,all figures will automatically be enteredfrom one worksheet to appropriate line(s)on Income Statement, Cash Flow, andBalance Sheet worksheets


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Prepare the Staffing and

Professional Services Budgets Enter the actual or anticipated expenses for staff

and consultants in each time period

If using the Electronic Financial Worksheets, theBenefits line will automatically be calculated bythe amount entered in the Setup worksheet

If using the Electronic Financial Worksheets,costs will automatically be entered on your

Income Statement and Cash Flow worksheets


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Prepare the Sales Projections

Enter the projected number of units in eachproduct line to be sold in each time period

Enter the unit cost of each product line

Enter commission and return rates

If using the Electronic Financial Worksheets,commissions and returns will be calculated from

the Setup worksheet, and all projections willautomatically be added to Income Statementsand Cash Flow projections


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Start-Up Costs

Not included in Income Statement butaffect the amount of money needed to beraised to start your business

IRS treatment some costs must bedepreciated over a number of years ratherthan expensed in the first year of business


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Prepare the Start-Up Costs

Enter the actual or projected costs to getyour business underway

If using the Electronic FinancialWorksheets, some of these expenses willautomatically get transferred to theBalance Sheet


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