An essential part of any business plan includes the financial information to support your dream. If a good business plan is your roadmap, then getting a real picture of your true financial needs with a 12-month financial projection template will help that roadmap lead to success.

WHAT IS A 12- MONTH FINANCIAL PROJECTION TEMPLATE?

Excel documents offer a great way for entrepreneurs to track financial projections because they provide a format that makes it easy to assemble the internal and external accounting data you use every day to manage your business. If your template is already set up with the proper calculations, you will just need to add the necessary data to review your financial forecast. 

This type of template often requires you to add sales revenue, cost of goods sold, cash flow for equipment, inventory and operating expenses, such as insurance, bank fees, rent, payroll, supplies, telephone, utilities, and more. While there are myriad financial projection templates available, CDC Small Business Finance offers a template specific to supporting you as you apply for a small business loan.

 

WHY DO I NEED TO PREPARE A FINANCIAL PROJECTION FOR MY BUSINESS?

Many entrepreneurs find that maintaining financial projections throughout the year is one of the most important keys to success. It can take some time and effort, but it will be worth every minute. Why?

OUR TEMPLATE IS DIFFERENT … AND IT’S FREE

As a mission driven, non-profit organization, CDC Small Business Finance offers a variety of products and services to meet the financing needs of small-business owners. Among these are a plethora of planning resources, including our 12-Month Financial Projections Template.

“There are many projection templates out there and ours is very specific to getting a loan,” said Susan Lamping, Vice President of Sales at CDC Small Business Finance. “If you’re starting or expanding your business and you need a loan, any reputable lender will need this information. 

“A lender will always require that you put a projection together and our template ensures that you don’t cut corners,” Lamping said. “It takes into account all start-up costs, plus fixed costs and your projected loan amount, so you’re really looking at a comprehensive view of the cash flow of your business. Nothing is left out. Everything is included.”

 

READY TO GET STARTED WITH CDC’s PROJECTION TEMPLATE

Get Your 12-Month Financial Projection Template Here

The projection template includes three worksheets that you need to complete: 

The Projected Cash Flow worksheet is the one that demands the most focus. Although it may take some time initially, it is well worth the effort. While working through the various fields – which include operating expenses as well as start-up costs – the worksheet will begin to auto-populate with a year’s worth of financial information. 

Nonrecurring expenses – promotional material for example – will refrain from showing up as a recurring cost while monthly rent, for example, will repeat 12 times in a year. And start-up costs automatically flow into the “expense” section, whether recurring or not. When the work is complete, you’ll know at a glance whether you’ll have an annual profit or a loss.

“If the result is negative, you might want to pause and rethink things,” Lamping said. “It doesn’t always mean your business won’t work – it may be a business that makes a profit in year two or three – and if so you’ll need to do a second or third year projection plan as well.”

 

Related: #LoanTipSixty: Be Prepared When Applying for a Small Business Loan

 

LOANS FOR EVERY SMALL BUSINESS NEED

Once you’ve done the work and can see a positive outcome, CDC offers several loan products to help start or expand a business. Our loans can help secure capital from $10,000 to $500,000, with loan repayment terms that range from three years to more than 10, depending on the loan type and amount.  Most importantly, CDC works with you to understand your business and match you with the loan that will best support your goals and be sustainable for your business.

 

DO YOU ADVISE ENTREPRENEURS?  IF SO THIS TOOL IS A GREAT RESOURCE FOR YOUR CLIENTS

While the 12-Month Financial Projections Template can show entrepreneurs how to achieve their dreams, it has proven equally helpful to the individuals and institutions that counsel small-business owners. Lamping said business coaches often share it with their small-business owner clients.

“Bankers can give it to their customers and we’ve found it really comes in handy for the business counselors we work with at the Small Business Development Center as well as SCORE,” Lamping said.  “We offer training and we’re happy to do this so counselors are really up to speed to help the client put the best projections together to get them loan ready. It really meets the need for anyone who is applying for a loan.”


Related: How Free Business Coaching Through These Nonprofits Can Ramp up Your Chances of Getting a Business Loan

 

Click below for CDC’s Forms and Templates hub.  For the 12-Month Financial Projections Template, scroll down to Helpful Business Templates. 

Find Your 12-Month Financial Projection Template Here

 

Tell our loan experts about your business, and they’ll work to match you with a financing plan that best suits you. Let’s talk! Reach us at loaninfo@cdcloans.com or (619) 243-8667.

 

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