Will You Add? - Financial Projections in Business Plans

To assist you in writing your financial projections section of your business plan, I have prepared a sample. This sample is from a most simple business model; a mobile car wash, which is part of a franchise system. Please feel free to print this article out and make notes in the margins and then take a legal pad and sketch out your own financial projections and start-up capital needed. I sincerely hope this sample helps you.

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Financial Projections

We will follow our business plan to keep us in a profitable situation at all times. We will try to keep our car wash truck busy at all times. We will stay on top of collections and make sure all invoices go out on time and are directed to the person who authorizes payment. We will treat cash flow as a primary objective in order to reach our financial projections. We will be sure to have the right mix of services.

Gross Revenue Percentage Breakdown

Personal Car Washing 60%
Graffiti, Industrial, Concrete 20%
Fleet Washing 15%
Other 5%

Gross Revenue:

Insert Graph or Pie Chart Here.

* Note: Car washing of personal vehicles will be 60% of our business. Over 80% of these monies will be collected at the point of sale by either:

· Cash
· Check
· Credit Card

Some will actually be paid in advance on credit cards thus keeping us on the proper course to achieve positive cash flow at all times. Very few customers will be allowed to be billed monthly.

** Note: Fleet washing and industrial (graffiti, concrete, etc.) will only account for 35% of gross receipts. Twenty-five percent of this will be collected at the time the work is done, leaving only 26.25% of gross receipts to be billed at month’s end.

Billing

On fleet accounts, all invoices will be net due in fifteen days. After fifteen days they will be considered late and 2% will be charged. If, in the future, our mix of percentages of services performed changes, we may offer a 2% discount for payment in ten days and a 1% discount for payment between ten and fifteen days. We don’t anticipate changing our mix. However, if our city awards us a graffiti contract for $75,000 a year we will definitely accept it.

Anticipated Gross Sales From Services

In the appendix there is a first year pro forma of projected sales. We believe these figures are attainable. For various reasons we will take a 70% scenario for budgeting purposes in case everything doesn’t go as planned. Just to be on the safe side. We project a conservative gross sales dollar amount to be:

$124,630 Projected Gross Revenue X .70 70% Of Projected Dollars = $ 87,241 A Conservative Safe Number To Project As First Year Gross Receipts

Anticipated Business Expenses

We project costs of $56,112 for our first year of expenses. Please see spreadsheet in the appendix. We will add in a 20% fudge factor just in case we have any unanticipated expenses in year one. We project a conservative business expense dollar amount to be:

$56,112 Anticipated Expenses X .20 20% Fudge Factor = $11,222 Possible Additional And Unanticipated Expenses During Year One Trade Show Choices-New Shapes in Popup Displays
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To assist you in writing your financial projections section of your business plan, I have prepared a sample. This sample is from a most simple business model; a mobile car wash, which is part of a franchise system. Please feel free to print this article out and make notes in the margins and then take a legal pad and sketch out your own financial projections and start-up capital needed. I sincerely hope this sample helps you.

- - - - - - - - - - - - - - - -

Financial Projections

We will follow our business plan to keep us in a profitable situation at all times. We will try to keep our car wash truck busy at all times. We will stay on top of collections and make sure all invoices go out on time and are directed to the person who authorizes payment. We will treat cash flow as a primary objective in order to reach our financial projections. We will be sure to have the right mix of services.

Gross Revenue Percentage Breakdown

Personal Car Washing 60%
Graffiti, Industrial, Concrete 20%
Fleet Washing 15%
Other 5%

Gross Revenue:

Insert Graph or Pie Chart Here.

* Note: Car washing of personal vehicles will be 60% of our business. Over 80% of these monies will be collected at the point of sale by either:

· Cash
· Check
· Credit Card

Some will actually be paid in advance on credit cards thus keeping us on the proper course to achieve positive cash flow at all times. Very few customers will be allowed to be billed monthly.

** Note: Fleet washing and industrial (graffiti, concrete, etc.) will only account for 35% of gross receipts. Twenty-five percent of this will be collected at the time the work is done, leaving only 26.25% of gross receipts to be billed at month’s end.

Billing

On fleet accounts, all invoices will be net due in fifteen days. After fifteen days they will be considered late and 2% will be charged. If, in the future, our mix of percentages of services performed changes, we may offer a 2% discount for payment in ten days and a 1% discount for payment between ten and fifteen days. We don’t anticipate changing our mix. However, if our city awards us a graffiti contract for $75,000 a year we will definitely accept it.

Anticipated Gross Sales From Services

In the appendix there is a first year pro forma of projected sales. We believe these figures are attainable. For various reasons we will take a 70% scenario for budgeting purposes in case everything doesn’t go as planned. Just to be on the safe side. We project a conservative gross sales dollar amount to be:

$124,630 Projected Gross Revenue X .70 70% Of Projected Dollars = $ 87,241 A Conservative Safe Number To Project As First Year Gross Receipts

Anticipated Business Expenses

We project costs of $56,112 for our first year of expenses. Please see spreadsheet in the appendix. We will add in a 20% fudge factor just in case we have any unanticipated expenses in year one. We project a conservative business expense dollar amount to be:

$56,112 Anticipated Expenses X .20 20% Fudge Factor = $11,222 Possible Additional And Unanticipated Expenses During Year One How You Can Use The Internet In Your Job Search
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Gross Revenue Percentage Breakdown

Personal Car Washing 60%
Graffiti, Industrial, Concrete 20%
Fleet Washing 15%
Other 5%

Gross Revenue:

Insert Graph or Pie Chart Here.

* Note: Car washing of personal vehicles will be 60% of our business. Over 80% of these monies will be collected at the point of sale by either:

· Cash
· Check
· Credit Card

Some will actually be paid in advance on credit cards thus keeping us on the proper course to achieve positive cash flow at all times. Very few customers will be allowed to be billed monthly.

** Note: Fleet washing and industrial (graffiti, concrete, etc.) will only account for 35% of gross receipts. Twenty-five percent of this will be collected at the time the work is done, leaving only 26.25% of gross receipts to be billed at month’s end.

Billing

On fleet accounts, all invoices will be net due in fifteen days. After fifteen days they will be considered late and 2% will be charged. If, in the future, our mix of percentages of services performed changes, we may offer a 2% discount for payment in ten days and a 1% discount for payment between ten and fifteen days. We don’t anticipate changing our mix. However, if our city awards us a graffiti contract for $75,000 a year we will definitely accept it.

Anticipated Gross Sales From Services

In the appendix there is a first year pro forma of projected sales. We believe these figures are attainable. For various reasons we will take a 70% scenario for budgeting purposes in case everything doesn’t go as planned. Just to be on the safe side. We project a conservative gross sales dollar amount to be:

$124,630 Projected Gross Revenue X .70 70% Of Projected Dollars = $ 87,241 A Conservative Safe Number To Project As First Year Gross Receipts

Anticipated Business Expenses

We project costs of $56,112 for our first year of expenses. Please see spreadsheet in the appendix. We will add in a 20% fudge factor just in case we have any unanticipated expenses in year one. We project a conservative business expense dollar amount to be:

$56,112 Anticipated Expenses X .20 20% Fudge Factor = $11,222 Possible Additional And Unanticipated Expenses During Year One Earning Money Online - The Truth About Opportunities Abound
We all have to earn money in order to buy the things that we want and need, right? There will always be the Rockefellers of the world, who are fortunately blessed from birth. As for the rest of us mere mortals, an income of some sort is imperative. Of course it would be sweet if we could all just have what ever we want, when we want them. Then we'd have tons of time to travel the world and kick back our heels. However, it is still truly important to find something that you enjoy doing. Because you will likely be doing it for 30 or 40 years. Fortunately the opportunity spectrum is not quite so limited these days. Take the current business earn moneypositive cash flow at all times. Very few customers will be allowed to be billed monthly.

** Note: Fleet washing and industrial (graffiti, concrete, etc.) will only account for 35% of gross receipts. Twenty-five percent of this will be collected at the time the work is done, leaving only 26.25% of gross receipts to be billed at month’s end.

Billing

On fleet accounts, all invoices will be net due in fifteen days. After fifteen days they will be considered late and 2% will be charged. If, in the future, our mix of percentages of services performed changes, we may offer a 2% discount for payment in ten days and a 1% discount for payment between ten and fifteen days. We don’t anticipate changing our mix. However, if our city awards us a graffiti contract for $75,000 a year we will definitely accept it.

Anticipated Gross Sales From Services

In the appendix there is a first year pro forma of projected sales. We believe these figures are attainable. For various reasons we will take a 70% scenario for budgeting purposes in case everything doesn’t go as planned. Just to be on the safe side. We project a conservative gross sales dollar amount to be:

$124,630 Projected Gross Revenue X .70 70% Of Projected Dollars = $ 87,241 A Conservative Safe Number To Project As First Year Gross Receipts

Anticipated Business Expenses

We project costs of $56,112 for our first year of expenses. Please see spreadsheet in the appendix. We will add in a 20% fudge factor just in case we have any unanticipated expenses in year one. We project a conservative business expense dollar amount to be:

$56,112 Anticipated Expenses X .20 20% Fudge Factor = $11,222 Possible Additional And Unanticipated Expenses During Year One Starting a Business - Getting Your Head Ready
This is an exciting journey you’re about to undertake. Before you can make it in a business of your own however you need to think about your own “way of being”. I won’t get too deep here, but you need to know who you are not, so you can find a business that’s right for you. I’ve never known anyone that in a search for themselves, found themselves – you’ve been there all along. What they did instead was find out who they weren’t. Whether this is a new business or the expansion of an existing business you need to be aware of what makes you tick so you choose the right business for you. Below I have some tips that will add light years to your understadix there is a first year pro forma of projected sales. We believe these figures are attainable. For various reasons we will take a 70% scenario for budgeting purposes in case everything doesn’t go as planned. Just to be on the safe side. We project a conservative gross sales dollar amount to be:

$124,630 Projected Gross Revenue X .70 70% Of Projected Dollars = $ 87,241 A Conservative Safe Number To Project As First Year Gross Receipts

Anticipated Business Expenses

We project costs of $56,112 for our first year of expenses. Please see spreadsheet in the appendix. We will add in a 20% fudge factor just in case we have any unanticipated expenses in year one. We project a conservative business expense dollar amount to be:

$56,112 Anticipated Expenses X .20 20% Fudge Factor = $11,222 Possible Additional And Unanticipated Expenses During Year One

$56,111 Anticipated Expenses +11,111 Unanticipated Expenses = $67,334 Total Anticipated And Unanticipated Business Expenses For Year One.

Profit Per Truck

Please see the graph on the following page of the “Net Profit One Truck”. This graph is based on the spreadsheets “Anticipated Gross Sales From Services” minus “Anticipated Business Expenses”.

We realize that if a conservative approach is taken, we must use the 70% scenario for Gross Sales and add 20% to Business Expenses. We project a conservative net profit for the first truck in year one to be:

$ 87,241 Gross Receipts - 67,334 Expenses = $ 19,907 First Year Profit. $ 19,907 First Year Profit divided by 12 Number Of Months = $ 1,659 Per Month Profit, A Good Conservative Number.

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