Financial forecasts are used to develop your projections, and a complete set will include – profit and loss, cash flow and balance sheets.
Creating these forecasts, in particular a cash flow forecast, will show you exactly how much cash the business will utilise if things run to plan at the end of each month.
Predicting revenue and expenses is very difficult for start-up businesses. With no trading history or previous references to work from, it’s very easy to be inaccurate and the margins for error are quite wide. However, you do need to attempt to produce some simple forecasts for a number of reasons, which are explained in this in-depth guide.
This guide will provide you with step-by-step, detailed information on:
- What a fiancial forecast is and why you need one
- Calculating your start-up costs
- How to stick to a personal household survival budget
- Balancing your cash flow
- Measuring your profit and loss
- Working out your breakeven analysis
- The different ways that you can finance your business