How do you do a financial plan with projections?

I Think Financial Planing Start with a sales forecast. Set up a spreadsheet projecting your sales over the course of three years. Create an expenses budget. Develop a cash-flow statement. Income projections. Deal with assets and liabilities. Breakeven analysis.

You need to learn basic accounting and business finance yourself. Either that or seek help from a financial consultant.

The structures are the same pretty much regardless of whether you are creating forecasts for ecommerce or any business.

In one of my earlier posts as a response to Jason Kanigan post I outlined a few of the business templates I was taught to use. - I'll try and search that post out for you but if you want a general overview of the five basic templates I use to manage the main components of my financial they are listed here: Business templates -- Tenxcel

When it comes to doing some breakeven analysis you can use your annual budget and there are also free templates like those provided by Microsoft.

This is their break even analysis template-->
https://templates.office.com/en-us/B...sis-TM03987170

As for projections they are just that but where you really need to focus is on having accurate data and being able to act on that data quickly.

That is why when I was shown how to use a daily operations system it revolutionised my business. Using just that up to the minute information and coupling it with an accurate cashflow forecast is pretty much the basis or basics all businesses should be using or doing.

You can do some generalised long forecast but the most useful is running a current fortnightly cashflow forecast and then reconciling it against actual cashflow on a daily basis.

If you grab a copy of the templates I use - there is a free trial - you would get the overview and how to apply it to your situation.

There are other tools out there that can help you also both free and paid and I would encourage you to investigate them also.

The five main templates I use are

Annual budget.

Daily Operations

Cashflow Forecast

Purchasing Budget

Variables Budget

All of these work together with whatever accounting system you use to manage any business.

The big flaw most business owners make is to think their accounting software will produce future predictions when in effect your accounting system is a record of what has happened and although can be used to forecast future results they don't help as much as a proactive system like running Daily Ops and short term cashflow forecasts.

Best regards,

Ozi