Financial forecasts and why you need them

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

Register with Business West to continue reading

Complete the information below to access this resource.

  • Find funding for your business

    Start your business right, with finance and support. A start-up loan can turn your business idea into reality, whilst helping you maintain 100% control. To apply for a business loan, contact us today.

  • Subscribe to our enterprise newsletter

    Register today to subscribe to our monthly enterprise newsletter, filled with the latest news, events, blogs and guides for entrepreneurs and business owners in the South West. Just select 'starting a business' as your area of interest.

  • We've helped 400 businesses access start-up loans worth over £2.8million.

    Best of all, the support given by our start-up experts is FREE.