How to Create a Basic Financial Projection or Budget (Video Tutorial)
Budgets aren’t important in business.
To the contrary, they’re CRITICAL.
If you’re not assembling an annual budget/projection for your business then you’re missing out on opportunities and accountability.
Simply put, your business isn’t performing at its potential.
Here’s the deal. When you assemble projections for the coming year, it’s not just a wish list. It’s a roadmap for the profitability of your business. Don’t just throw it together. Think about the numbers, where you need to improve, and how you’re going to get there.
Then once you have your game plan in place, you’ll have a real tool by which you can assess your performance throughout the coming months. At each month-end (or quarter at a minimum) compare your actual performance against the budget. Where are you doing well, and where are you underperforming? What’s the cause of these negative variances, and how can you correct them moving forward? That’s what budgets are about. Putting a plan in place, moving forward, and analyzing your business to keep it performing optimally.
Below is a brief how-to video screencast that walks you through some of the steps of creating a basic financial projection for your business.
Free template download: Basic Financial Projection