April 26, 2013
SCORE Financial Projections Template
A small task force team, led by Heather Hendy, our SCORE national Projects Manager, has developed a brand new, “all singing, all dancing” financial projections Excel spreadsheet template to assist a SCORE counselor and client in developing three year pro-forma financial projections for their startup business or existing small business.
Why? So that we could bring new client counseling features and benefits superior to those in the previous spreadsheet model and so we can copyright the template in our SSSYB and SSGYB workshops.
New 40 page users How To Guide
Clarifying that the purpose of tab 1 is to build a starting point Balance Sheet for the business, along with clear explanation of the Working Capital (Cash) line in the balance sheet
Ability to enter expenses data by year, by month, rather than just a lump sum for years two and three
Ability to have different levels of payroll changes for different categories of employees
Six product/service segments or categories for sales projections, providing greater flexibility in modeling different pricing and gross profit margin structure among different products
Ability to project new fixed assets purchases, by month in years two and three and to calculate depreciation expense on these new capital expenditures
Ability to increase or decrease operating expenses, category by category, at different rates in the future
New Cost of Goods Sold calculator
Improved clarity in maximum capital requirements to finance the business plan, given the assumptions that the user builds into the plan
The new users guide provides a step by step guide to learning how to use the template, making it much more user friendly for both the SCORE counselor and a client
User will now have a much better understanding of the purpose and structure of tab 1
User will be able to change expenses planning, by month, to correspond with new events, like hiring a new salesman
Can fine tune projections in years two and three with a level of clarity not previously possible in the older template
Ability to recognize the impact of different product sales mix changes on projected total profit results
Depreciation expense calculations in years two and three provide more comprehensive forecasts for profit and cash flow projections for the business
Improved flexibility and clarity of forecasts for operating expenses in future years
NEW CGS calculator allows user to build up logical direct cost elements to improve forecasting accuracy for gross profit margin
Answers the essential questions: 1) how much money do I need to start up this new business (or grow an existing business and 2) how long will it likely be until the business moves beyond break-even into a positive cash flow status and 3) what is the financial feasibility of this business concept
Bottom line—this new template will become a powerful business planning tool for either the aspiring or existing business entrepreneur. The tool takes a complex and often daunting process and breaks it down into a much easier step by step process for developing a financial model of a business concept. Planning, budgeting, financial modeling—critical keys to success in any business.