ABOUT BUSINESS PROJECTION CONSULTANCY
We understand that all businesses are about profits and losses. Therefore, when we work on a new business plan, it is important for forecast our future revenues and expenditure. This exercise is termed as “Business Projection” or “Financial Projection” consultancy. It is actually the estimate of future financial performance of the business. It varies from business to business and this is when business projection consultancy help is required.
The main challenge faced by start-ups is access of finance. Start-up businesses involve taking risks and therefore, not many investors are ready to invest in such businesses to finance the same. This discourages the young and aspiring entrepreneurs to start new business. The basic requirements to prepare a business financial projection for a start-up business are: (a) Profit and Loss Statement, (b) Balance Sheet, (c) Cash-Flow Statement.
Various steps are involved in preparing a realistic business and financial projection. These are mentioned below in detail:
- REVENUE FORECAST AND PROFIT AND LOSS
To start with, it is important to have a revenue forecast along with profit and loss statement. This gives the basis of income and expenses of a business. Supporting details also need to be attached so as to have detailed information about costs, marketing fundamentals, and much more.
- PREPARATION OF A MONTHLY FORECAST
To ensure reality in calculations, it is important to prepare a spreadsheet with the help of revenue forecast. If many years of financial projections are available, then it is important to prepare a monthly forecast of income and expenditure.
- REASONABLE ESTIMATE
As consultants, it is important to include the forecast of goods being sold. It is important to have a reasonable estimate of the underlying cost. When payrolls are taken into consideration, this should be estimated in advance as well.
- MARKETING STRATEGY
Marketing strategy is very essential for any business. Thus, it is important to outline the marketing strategy of your business plan and highlight the relevant costs. More than one strategy can be formulated at one time as per the business plan. Relevant costs for each strategy can be estimated well. Thus, realistic budgets are achieved and one can plan the budget accordingly.
- ESTIMATING THE COST OF RUNNING THE BUSINESS
There exist specific administrative and miscellaneous costs involved in running a business. This includes the cost of rent, recurring costs, general utilities and much more – which can be forecasted. It is important to forecast every category of cost that is incurred. Fees of various mandatory requirements and legal services also need to be forecasted well in advance.
- PAYROLL FORECAST
While starting a new business, HRM (Human Resource Management) needs to be well considered. There are various labor legislations to be compiled as per the type of business. Financial projections are normally made for more than one year. It is important to understand how a payroll forecast works. This ensures that a business strategy matches well with the human resource management plans.
The above mentioned steps help in business projection details. This may vary as per type of business. Thus, the basic steps of guidance need to be taken care of so that business and financial projections are understood carefully.
WHY CHOOSE AWESOME CONSULTANCY FOR BUSINESS PROJECTION CONSULTANCY?
Business Projection Consultancy mainly refers to financial projections of future revenues and expenses. It accounts for historical and internal data and predicts external market forces. The projections need to have data in both short term and mid-term financial projections. Our business projection experts at Awesome Consultancy have much experience, knowledge and expertise to account for both short term and mid-term business financial projections.
Our experts are well versed in including various elements in financial projections such as: income taxes, net income, total income, revenue, expenses, and much more. Our experts execute various types of projections such as cash flow projections (having three sections: cash disbursements, cash revenues, and reconciliation of cash disbursements and cash revenues). They are experienced in preparing balance sheets to showcase your present business net worth, equity, summary of assets as well as liabilities. Thus, financial projections help in providing an overview and analysis of your business.
Our experts are highly realistic in undertaking tasks related to business and financial projections. They never underestimate or overestimate the forecast regarding revenue. Our experts provide the best of services related to the following:
- BALANCE SHEET FORECAST
Our experts use the right set of tools to deliver a forecasted balance sheet that perfectly tracks the budget and the forecasted income statement. This data looks much like the actual financial statement. The difference is that it represents the future budget periods instead of actual accounting period performance.
- PROJECTED CASH FLOW STATEMENTS
Our experts use the best of cash flow forecast tools. These tell you if your business would have enough money to run the businesses or pay to expand it. It will also showcase details on when money is incoming and when it exits.
- RATIO ANALYSIS
Our experts help you evaluate the performance of your business against historical figures. We help you in analyzing ratios that help you in quantifying your company’s strengths and weaknesses, evaluate the financial position of your business and understand involved risks that you may be taking.
- FINANCIAL MODELLING
Our experts help you in forecasting a picture of your organization’s future financial performance based on historical performance of the enterprise.
- FINANCIAL ANALYSIS
Our experts are right here to help you gain understanding of your costs, profitability and much more at the product level.
So, do you have requirements of Business Projection Consultancy Services? Do not worry anymore. Our Business Projection consultancy experts are right here to provide you the best of services at reasonable prices.