What Does a Business Projection Include?

Mar 23, 2019 by Roger Scherping

So, what does a business projection include?

A complete business projection includes three things:

First, a budget. Most of you know what a budget is. It is your planned sales, expenses, and profit for the coming year.

Second, a projected balance sheet. Your balance sheet is the list of what your company owns and owes and how much equity you have. So a projected balance sheet means what your balance sheet is going to look like in the coming year. Your projected balance sheet will show you whether your company will be in a stronger financial position at the end of the projection period than you were at the beginning.

Finally, and most important, is a cash forecast. The cash forecast tells you how much cash you are going to have, so it is the most important part of the business projection. Cash is the lifeblood of your business, and your cash projection will alert you to any upcoming cash issues, like whether you will run out of cash, whether you’ll need a bank loan, and whether you can afford some of your business decisions.

A complete business projection is the best thing you can do to take control of your business!

So, plan! At ProjectionSmart, we can help.