The last thing you want to do is show your pro-forma statements to an investor or a lender, only to have that individual find a mathematical mistake that could easily have been caught had you used the right software tool.
With a template-based business financial planning tool you simply input the information you know, information you have gathered from your business.
In order to attract investors and get the financing you need in that critical startup phase, you need to have a detailed business financial plan in place.
This financial plan will explain to investors and potential lenders why your business is destined for success.
Regular expenses are the current ongoing costs of your business, including operational costs like rent, utilities and payroll.
Regular expenses relate to standard business activities that occur each year, such as conference attendance, advertising and marketing spend, or the office Christmas party.
The inputs you will enter into the program include: Once this information is entered into the software application, the real value of the technology becomes apparent.
By taking these relatively simple inputs, the planning software creates a series of valuable outputs, including: As you can easily see, these outputs have value in a number of different areas, over and above their value in securing the financing you need to start and grow your business.
A seasonal business can aim to improve sales in the former offseason to become a year-round venture, while another business might become better prepared by understanding correlation in upticks and downturns in business due to factors such as the weather or economy.
Sales forecasting is also the foundation for setting company growth goals.