- Free Template
- Sep 30
- 2 min read
How to Build Simple Financial Projections for Your Small Business
Creating financial projections can feel intimidating—but they don’t have to be. A good projection doesn’t require complex spreadsheets or an accounting degree. What matters most is that your numbers are clear, realistic, and useful for planning your business.
That’s why we’ve put together a simple template to help you get started. Our model includes two core pieces:
Simplified Income Statement. Shows your expected revenue, expenses, and net profit over time. This helps you understand whether your business is on track to be profitable.
Simplified Statement of Cash Flows. Tracks the cash coming in and going out of your business. This is crucial because even profitable businesses can run into trouble if cash isn’t managed properly.
Tips for Creating Your Financial Projections
Focus on your key drivers. It's not worth your time to try to predict every line item in finite detail, you'll be wrong most of the time anyway. Instead, identify your largest costs revenue lines, then group the rest into simple buckets like marketing, payroll, or overhead.
Use realistic assumptions. Use your best estimates for sales, pricing, and costs. It’s better to be conservative than overly optimistic.
Be Transparent. Make sure that you and your reader both understand where you came up with your assumptions and what the risks are to those assumptions. The more clear you are, the fewer reasons a banker or investor will have to doubt your math.
Use cash flow as a health check. Revenue growth is exciting, but make sure your business always has enough cash to cover expenses.
Get a Second Set of Eyes. Once you've put together your projections, have a colleague or advisor review them with you. Their questions might identify areas you've overlooked. If you don't have anybody to review your projections, feel free to email us at hello@thefundingtrail.com. We've worked on hundreds of forecast models and are happy to help.
Why Projections Matter
Financial projections are more than just numbers on a spreadsheet. They give you a roadmap to anticipate challenges, identify opportunities, and show potential investors or lenders that you’ve thought ahead.
Download our free template above to start building your projections today. Keep it simple, stay consistent, and use your numbers as a guide for smarter business decisions.
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