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How to Construct Financial

Projections for

ENTREPRENEURSIntroduction

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Scary Huh?

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Financephobia?

“We will get 1% of the total market share...”

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Industry Journals

Competitor’s Annual Reports

Internet Forums

Online Questions

BlogsMarket

Research Reports

Observation

Google Traffic Estimator

15%

1%

Example Sales Funnel

15%

1%

Example Sales Funnel

v

225 $800X = $180,000

Year 1 Sales is worked out like this:

This is what your Expense Assumptions listshould look like:

Workings for Depreciation in Assumptions

Asset Value / Useful Life = Depreciation

Workings for Depreciation in Assumptions

Referenced from assumptions page

Sales - Total Expenses = Profit/Loss

Cash Flow Example

Cash Flow Example

Total Inflows - Total Outflows = Total Inflow/Outflow

Total Inflow/Outflow + Opening Balance = Closing Balance

Balance Sheet

Balance Sheet

What your business owns

What your business owes

Balance Sheet

See, it’s balanced!

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