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FINANCIAL PROJECTIONS FOR START UPS IN IRELAND
Are you in need of Financial Projections for your new Startup in Ireland? If you are seeking to obtain financing for a new or existing business, you may find that you have to supply financial projections.
Financial Projections are the most important element for any business plan whether presenting it to the lending companies such as Banks, Credit Unions or Private Lenders, Investors or Government Bodies, so it’s important to get them right.
Some founders for startup start their operation with huge optimism and energy but without a well thought out financial plan, business can not make a convincing business plan.
Why are financial projections important?
Banks or investors will usually ask you to prepare an income statement and balance sheet as a condition of evaluating your financial condition and considering you for a loan.
Financial Projections are used to attract investors or apply for a bank loan
Financial projections ensure funds are allocated to areas that meets objectives
Financial Projections are high level story of business numbers give a message what and how business will grow
How to make Financial Projections for your business
In order to create financial projections, there requires 3 Key things.
- A Profit and Loss Accounts (Also known as Income Statement)
- A Balance Sheet
- A Cash Flow Statement.
Step by Step Guidance on Creating Financial Projections
For guidance we have laid down step by step items in order to prepare financial Projections for your business
Create Sales Forecast
First and foremost, the task is to predict what would be likely sales value or volume by Sale price by month for the first 3 Years of trading.
It is hard to predict as well as the most important aspect of the business plan. Much of your hope for success rides on how accurately you estimate sales revenue.
Keep in mind that you’re honestly trying to decide if your business will be profitable.
This means that you must base your forecast on the volume of business you really expect—not on how much you need to make a good profit. If you estimate sales too high, your business won’t have enough money to operate. But if you estimate sales too low, you won’t be prepared or able to handle all the business you get.
Create Cost of Sales Forecast
You can also include the cost of items sold. For each sale item surely, you have to bear costs directly attributable. For instance, for manufacturing business, you build a cost of material used to produce one unit and then multiply by unites expected to be sold each month or year. Direct Labor and Manufacturing overheads also needs to be factored in
Create the expenses or over heads forecast
Next, an expense prediction is required. This is usually easier to think about the day to day expenses such as rent per month, Rates, Light and heat, costs of website and maintenance, repairs, Wages and salaries, Directors Remunerations etc.
Produce a balance sheet projection
Balance Sheet presents the financial structure of your business. Like Assets it will own and Liabilities it has to return and owners capital invested. You may base your Financial projections upon your existing balance sheet, assuming your business is already up and running.
Do a cash flow projection
Finally, you need to prepare detailed cash flow forecast as what comes into the business in terms of cash and how it is spent. You can break the cash flow projection down into relatively short periods (a month, for example) to capture the fluctuations in your business’s cash flow.
No matter what your industry, we’ve got the experience to help you.
Perfect your business plan to ensure 100% financing. Having a great business idea makes a good start, having an effective business plan to bring it to life makes it real. Many entrepreneurs find that preparing a financial forecast is the most intimidating aspect of developing a business plan.
Financial Projections for Business Plans, Loan Applications, and investors. Predicting the future is difficult, but planning for it can help. Call us today!
Perfect your business plan to ensure 100% financing. Having a great business idea makes a good start, an effective business plan makes life real. Financial Planning helps your business deal with change, both inside and outside the company. Depending on your company’s situation and objectives, you’ll need to develop several types of projections and budgets:
Profit and Loss Account
The first element of financial projections is Profit and loss and it indicates 2 main items. How much sales/turnover business will generate month by month and on annual basis basically summing it all. The second item is listing down all the expenses. There is a large list of expenses as opposed to revenue. Hence they need to be categorized into more understandable categories.
The second element of financial projections is the Balance sheet which contains three main items.
- Assets- How much the assets are worth which business owns. Such as Furniture, Plant, Equipment, Vehicles, Computers, Bank Balance, Debtors, and Stock, etc.
- Liabilities – How much business owes to third parties such as Lenders, Creditors, etc.
- Capital- Final portion is how much the owner invested. Also, it includes how much profit a business has generated and retained in the business.
Cash Flow Statement
Detailed month to month cash flow showing how much cash is received by business and how it will be spent on a monthly basis.
How much does business plan cost ?
Our fee is entirely reasonable, depending on task complexity.
What section will be included in Business Plan ?
Business plan structures vary depending on the client’s unique needs. All documents, though, include the following key sections: market analysis, business model description, operational strategy, goals, financial model, etc.
Can you guarantee that my business plan will lead to successful fundraising?
We can guarantee that the business plan we prepare for you will comply fully with all loan requirements.