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Projection Information
Being able to present a clear, concise, logical and supportable financial projection is probably the most important key to having a chance of obtaining the capital you desire. If you don't have financial forecast ability, hire someone who does. Have your pro forma give a month by month breakdown for the first year, quarterly for the next two years and then annually for the last two years. Include and fully support:
- Sales Estimates
- Administrative Costs
- Production Costs
- Sales Costs
- Capital Expenditures
- Gross Margin by Product Line
- Sales Increase by Product Line
- Interest Rates on Debts
- Income Tax Rate
- Accounts Receivable Collection Plan
- Accounts Payable Schedule
- Inventory Turnover
- Depreciation Schedules
- Usefulness of Assets
The Income Statement (Profit & Loss)
You will use the income statement to measure your business revenues against your expenses for a certain period. Let's consider an apparel manufacturer as an example in outlining the major components of the income statement:
The income projection enables the owner/manager to develop a preview of the amount of income generated each month and for the business year, based on reasonable predictions of monthly levels of sales, costs and expenses.
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