Financial Projections Builder

When you set out to raise capital from investors, apply for a loan from a bank, or do any long-term planning for your business, it’s crucial to have strong financial projections. Use the tool below to forecast financials over the next five years for your new or existing brick & mortar business for free.

Financial Projections FAQ

How should I estimate Gross Sales?

If your business is seasonal or closed for part of the week, be sure to reflect this when entering your Gross Sales. For example, if you project 40 customers per day spending $20 each but you're only open for a quarter of the year, you should divide either your Average Daily Customers or the Average Amount Spent by 4 when using the tool.

What is a typical markup?

This varies based on the type of business. For instance, keystone pricing is a standard in retail that refers to a 100% markup. According to HowStuffWorks, a restaurant’s markup is generally 300%.

Some businesses, like gyms and spas, will generate most of their revenue by providing services rather than selling goods, so their markup has a smaller relative impact on their profitability.

Should I project my expenses based on my revenue growth, inflation, or something else?

When creating your projected income statement with this tool, it is important to consider which expenses are fixed and which are variable. Fixed expenses stay the same each year regardless of changes in revenue. Common fixed expenses are rent, software, vehicle leases, etc. Fixed expenses usually have either no growth or growth at inflation. For example, rent often has stipulated annual increases that are meant to approximate inflation.

On the other hand, variable costs go up and down as revenue changes over time. For example, Cost of Goods Sold (COGS) is almost always a variable expense, since as you sell more products the cost of each unit will increase COGS. Other common variable expenses are marketing and payroll.

How can I generate a projected balance sheet?

This tool generates a projected income statement. To generate a projected balance sheet, you can apply the projected operating profit to your existing balance sheet, taking into account where that additional profit should be allocated. In other words, in many cases you can simply increase your cash by your operating profit (less tax) as projected each year in this tool. Make sure this is reflected in equity as well.

Have more questions about your business’s financials? Contact us