As the Business Entrepreneur instructor at Dakota County Technical College for over 15 years, I feel I have every right to hate the word “Entrepreneur.” Because it is in my title and identifies the program I helped create and taught for fifteen years, I was required to spell that stupid word over and over again. It seems like each time I spelled it, I get it wrong! So right here and right now I choose to change the word to something that has more meaning and is far easier to spell. In our society the... [continue reading]
Welcome to the ProjectionSmart Blog!
We want to share with you our thoughts on business projections, cash management, small business, entrepreneurship, finance, startups, and business planning.
Hi, I’m Roger Scherping for ProjectionSmart. So, what exactly are financial statements? Here's everything you need to know in 2 minutes. The first financial statement is the balance sheet. The balance sheet has 2 sides. On the left side is everything that your business OWNS. So, cash, accounts receivable (the money your customers owe you), inventory, equipment like trucks and computers, and maybe some patents or goodwill. So the left side total is the sum of everything your business OWNS. ... [continue reading]
So, what are the benefits of doing a business projection? Why is it a good idea for you to do one? Alan Lakein once said, “Planning is bringing the future into the present so that you can do something about it now.” So a business projection will help you see into the future, evaluate your decisions, and take action now -- because sooner is always better than later. Here are some of the real benefits of a business projection: * Planning helps you see your options (what-ifs) and determin... [continue reading]
So, how do you do a business projection? Business projections are an attempt to predict the future based on history and your insights. So you start with what happened in the past. You can get this information out of your accounting system. Assemble one year of monthly financial statements. This will be the basis for predicting the next 12 months. Next you need a budget. Figure out your planned sales, expenses, and profit for the next year. But a complete business projection also inc... [continue reading]
Some of you are wondering: What exactly is a business projection? A business projection is simply a financial plan for your business, usually for the next 12-24 months. For a startup, a business projection will tell you if your business concept makes financial sense. It will tell you whether you can expect to make profit with your concept and how much cash you will need to make it a reality. For an existing business, a business projection will tell you where you’re going to be in the nex... [continue reading]
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