Your financial projection

This section looks at your financial projections. It's the second 'half' of your business plan and important to help your reader understand how you have calculated the investment your business requires, how you're sourcing this finance and your projections for at least three years.

In addition to this narrative part of the business plan, you will also need to present some quantified financial projections on spreadsheets. Projections for three years are usually sufficient for a start up business plan but include longer projections if you make them.

This document includes:

  • Financial projections
  • Assumptions - why and how you've made them
  • Scenarios and contingency plans

Refer back to your Investment requirement analysis from your feasibility study. See What investment will your co-operative need? 

If you didn’t manage to do this, you must do so now by visiting the above link.

See also the Financing your business section which provides guidance on financial terminology, and types and sources and types of finance.

Your financial projections

Download and complete this financial projections template, which acts as the second 'half' of your business plan.

In the narrative part:

  • Your projections should include: Annual budgets – income and expenditure itemised, possibly analysed by department; monthly cash flow forecasts; annual profit & loss projections; annual balance sheet forecasts.
  • What assumptions these figures are based on: What your start up capital requirements are; where investment is coming from and under what terms; what further investment is required and plans to raise it; when the break-even point will be reached; how much sales income is required to reach break-even; other key financial indicators specific to the enterprise.
  • Summarise other scenarios that have been considered in financial terms, such as contingency plans, to demonstrate to investors (and yourselves) that their investments will be safe whatever happens.

The information and tools in this section have been developed by our colleagues at Co-operative Assistance Network.

Updated: 26/03/2019