How To Project Startup Revenues & Expenses (Financial Projections) in a Business Plan

As a full-time business plan writer, one of the questions I get asked commonly is how do I project revenues and expenses when the business is not established yet and there is no data. The truth is, there's always data. It may not be data from the business that is looking to protect their financial statements, but there is data from comparables. This is why the market research and Industry analysis section of the business plan is so important. The market research and Industry analysis section of the business plan creates a basis of assumption for projecting the financial statements. The market research allows you to find data on population growth, income statistics, racial demographics and more. The industry analysis allows you to grab data on your industry and competitors. This includes information such as common industry profit margins, industry wages and more. By looking at this data, you can form an educated guess, also called an assumption, which allows you to project your revenues and expenses. For example, if you are opening up a restaurant, the market research may show data for how many people come into the plaza where you will lease space. The industry analysis will show you food cost and what is commonly going on in the industry. All of this information is used as the basis for your marketing plan and financial projections. When you are an established business, you simply look back at your data. For example, if you have been operating a restaurant for the last three years, then you can look at how much money was made, what was the busy season, what was the most popular selling plate, and more. These will form strong assumptions to project your revenues and expenses next year. You will begin to see a pattern in regards to how much money you're spending on marketing, or where you are marketing, and how much revenue is being made. This should end up being a mathematical formula. For example, the restaurant owners spent 10000 + marketing a year and made $100,000, and then another year they spent $20,000 on marketing a year and made $200,000, and so on. Now business doesn't run this smoothly and this linearly, but there will be something that stands out in the data that allows you to mathematically equate and investment in marketing to revenue. This will act as your basis of assumption when projecting and established companies revenues over the next time period. Hope this was helpful. - Nick NicholasCoriano.com
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[@jonnygarcia8014]

i learned more in this video than in my intro marketing class lol thank you baller

[@nicholascoriano]

Appreciate it

[@elraj]

Thank you Nicholas for doing this. Straight to the point. Appreciate it.

[@nicholascoriano]

Glad I could help

[@syedwajdanahmed3947]

I have the entrepreneurship project coming up and i didnt really know how to start from scratch as a startup, he made it easy and the plus point is that this is going to work for me later in jobs as well

[@GPK033]

Thank you G. You helped the GPK0 spread it's wings! RESPECT.

[@ronque23]

Man, thanks for this video. You explained this so well without fancy graphics or animation that none of the other videos I found could accomplish. Sub’d and gonna forward.

[@nicholascoriano]

Glad you liked it! And thanks for sharing.

[@patyr6580]

5 yrs later (2024) your video was very helpful 4 me.

[@kelleyrose5849]

I love your videos. I share them in my entrepreneurship classes. You are very informative and engaging.

[@nicholascoriano]

This means so much to me! Thank you Kelley

[@n.13thnetwork53]

Appreciate you giving this game for free man. Means a lot and was very helpful.

[@nicholascoriano]

Happy to help!

[@christophersaba3585]

Nice simple outline, great guide points for a business plan Keep posting , thanks for the help , appreciate it buddy!

[@nicholascoriano]

Thank you!!

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Bro, thank you so much. I just found this channel.. You definitely deserve more subs. Continue sharing the knowledge man. You just earned a sub from me👍

[@nicholascoriano]

I appreciate that!

[@cafelueur]

Thank you for this,right now i’m working on a business class project and I was so confused on how to calculate the revenue.

[@angelica7236]

Thank you !!!! An actual video thats helpful i have already watched 10 other videos and learned Nothing.

[@hudsonhillmanufacturing]

Very nice. Very clear- makes sense- much appreciated!

[@nicholascoriano]

You're very welcome 🙏

[@gmo3682]

Loved the way you explain

[@nicholascoriano]

Thank you so much!

[@khosiwealth7307]

Short but highly informative. Thank you, mate.

[@nicholascoriano]

Thanks!

[@AmericanConcreteRepair]

Thank you this was extremely helpful!

[@thozamabusakwe5608]

This was gold. Thank you 🙏

[@nicholascoriano]

Appreciate it

[@samuelbrown8599]

This was helpful. Thanks

[@Punchstudent1]

Great informative video!! Greasy way to break this process down !!

[@nicholascoriano]

Thanks man! Appreciate it! And Appreciate you subscribing

[@weeklyfun5000]

Thank you! This is so helpful!!

[@nicholascoriano]

You are very welcome

[@judithakatugba2538]

Good teacher!

[@jswizzygaming]

Great video, helped a lot with my business project 👍👍

[@nicholascoriano]

Glad it helped!

[@ccstovall135]

Thank you! Very helpful!!! 🎉

[@nicholascoriano]

You're very welcome 🙏

[@wahidhage7045]

The best makes it simple.

[@jaredgarvin6491]

hey, do you have a video, doing or explaining the economics of the business that's within the business plan?

[@funmioh]

Very helpful thank you

[@nicholascoriano]

You're welcome

[@lloydelpessoa9653]

Great video

[@nicholascoriano]

Glad you enjoyed it

[@BlactinaMedia]

this was good

[@MZmage69]

thank you

[@nicholascoriano]

You're welcome

[@SnakeFairyPrincess]

trying to get my DUNS number and got stuck at the "annual sales" question. .. . . I'm about to be a junior studying business at a university and I learned more here than in all my business classes. Wish everything was as thorough as this video and it was only 8 mins ...

[@nicholascoriano]

Thank you so much! Appreciate the love

[@joccichaneljg]

What PDF’s would we need

[@warriorclassmedia]

🧨🔥👑

[@luisalemus]

Came here because I was hired as a project analyst but actually doing financial analysis 😑

[@blackpower5916]

Hey Nicholas are you still providing help with business plans.

[@nicholascoriano]

Yes I am. Text me at 203.685.0346

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We are a new tech start-up company. We need our BS done by a professional. Can you help? We are based in uk

[@gmo3682]

@@nicholascoriano How can I contact you sir?

[@nicholascoriano]

my email is [e-mail]

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hey man, i need your help as soon as possible.

[@nicholascoriano]

I'm here NicholasCoriano.com

[@pureblissfulsoul2950]

How to make a cash flow statement for a start-up incubation

[@nicholascoriano]

Check out my templates for cash flow statements on Cervitude.com

[@sorcererstone3303]

This approach sounds odd. This is a top down approach/estimate. According to Steve Banks, this is something startups need to avoid.

[@nicholascoriano]

There are other methods of projecting, this is just one.

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