Paul, I just want to thank you! I have been having trouble creating my financial projections, and this video helped my tremendously. May God continue to bless you!
This was awesome!! I tried so many videos and I just completed my financial in under an hour. You are very thorough and straight to the point!! I especially love at the end where we highlighted the changeable data!! 👌🏾
I’ve been struggling for months with financial projections and I was looking for so many videos till I came across yours I’m literally smiling ear to ear! God bless thank you so much !!! 🙏🏾🙏🏾
Thank Paul - you are a genius. Your manner of explaining is so simple and I followed your tutor step by step - I now have a Profit and Loss Account and I know exactly what figures from from where. Excellent! I will certainly sign up with you! Excellent!!!!!
Thanks for this. You simplified financial projection . I have watched many videos on financial projection but yours is exceptional, I am already feeling like a pro with this simplified video of yours
I am super glad that I found this gem. Great explanation. Easy to understand. Very doable. Format is impressively comprehensive. Saved me from any more financial frustrations. More so, fear of losing. All in all, an absolutely great video!
@@QualityBusinessConsultant I really appreciate your gift of teaching, sir. Not everyone can successfully transfer the knowledge. I will be learning more from your videos. Blessings!
Paul, I watched this video at around 5.50am, and this video made my rest of my life so worry free of calculation of so many thing. I am very weak in math, you have taught me a lesson of my life, which I had all through my 10 business years had to rely on my friend for this kind of calculation. I am thrilled about this video. Loved the way you explain the process is awesome. Now because of this covid I am out of business and cashless, am preparing my business plan to submit to the bank, and have no cash to even pay my rent and bill, I was so hesitating to ask my friend to do this calculation for me as usual, since past four day I have gone through many many videos on you tube, nothing like your video I found, I repeat nothing like your video. I am broke now, if I had cash I would have definitely would have made a payment worth of a course to you. No issue I have saved this video in my account on youtube. I would definitely make the payment once I have enough cash in hand. Thank you once again, from now no more relying on others to make this kind of calculations and making my morning so thrilled, to start the day.
This video is the best I have ever seen . I plan on start my small business and was extremely worried about the financial plan section of my business plan but thanks to you I no longer have to worry . You are amazing and am grateful to that you share your video with us without monetarizing it . So So Soooo grateful . Thank You . Such a easy to understand video , literally fool-proof.
Good evening Mr.Paul. Thank you so much for this beautiful Video. I am sure that this video will definitely help me make my business plan for next few years.
Thank you!!! This was the last piece of my business plan that I was trying to configure. I had all the information you listed but the profit and loss part. Omg thank you, thank you!
Grateful for you putting the time into this. I followed it all the way to the end and learned what common sizing is, and how projections are done with percentages using the valuable formulas on your tutorial. I pray you continue doing videos as it is a service to the public.
Thank you so much!!! I have never been good with numbers and I have been trying to figure out how to do a financial projection. This was such an easy lesson and it was also a refresher for me on how to use Excel.
it was such a hard thing for me to understand or even out together a restaurant financial projects, you made so easy for me to understand and make my own financial projects , thank you so much!!! Jean-Claude from South africa
Many thanks Paul for posting the video. Highly worth the time and efforts. I am able to create my own statements confidently.Quality video. Regards. Feroz.
This is the best video I have come across regarding this topic. Thumb up. It's so great. However, Iwish you can make another video for Balance sheet, and income statement for business plan. Thank you
Amazing video Paul, many many thanks! one consideration I would like to ask you about is how to make the 12 month forecast more accurate for a small business that only has labour for 5 days a week excluding weekends in each given month. I have used this video and template to forecast but found that the maths became much more tricky once you try to factor in the actual days in a month, and then total labour days per month too. It raises the question that maybe i'm trying to be too accurate for a projection or not. . ? many thanks !
Hi, Thanks for the kudos! Correct, it does get exponentially harder for each variable added. I would recommend checking out any one of my 100+ business plan templates, which includes a financial model. Here is the link... qualitybusinessplan.com/business-plan-templates/ Hope this helps. Paul
Hey Anu, Good question and I get asked that alot. Its actually quite simple... You can't. Consider this, two convenience stores are located on opposite sides of the street... Its a fact that one will make more daily revenues than the other, even if they sell identical products with no differences in price... Often times much more. Variables that may impact sales could be management team, customer service, brand name (Wawa or Circle K), or ease of entry/exit. From this, use projections based on how many customer you THINK you can service, on average daily. Then use your projections as benchmarks. I hope this helps. Paul
Dr. Sunkutu, Thank you for the kudos!! As for the p/l for 12 months, I did not expand upon it because of the growth rates needed for each line item, season changes to month to month revenues, etc. Kinda wanted to keep is relatively short and sweet. However, hopefully, I will have time soon to do a follow-up video. Paul
I would like to ask, Is it possible to include the initial investments in equipment and its depreciation cost for this format? If so where should I put it? Thank you.
Hi, Thanks for the message. Sorry, the initial investments are more aligned with the balance sheet whereas this video is focused on income statement items (I know, depreciation is also on the income statement, I am going more for simplicity in the video though). However, I will be doing a video soon focused on this topic. Paul
@@QualityBusinessConsultant thank you so much for your response. May I ask one more time? What if the business is more on service type? Like a travel agency. How can they input their daily sales? What can you suggest about this? Thank you so much! You have been very helpful.
Hi Omar, You can add an additional line to include taxes. But then you would also need to include amortization and depreciation. I just wanted to kinda keep it simple. Best of luck!! Paul
That will be coming in a new video, which I will be releasing soon. In the mean time, check out my how to write a business plan book. www.amazon.com/dp/B07WGXJ1FK
So, since you included labour costs, I'm assuming this is likely for manufacturing business, right? If you paid only salaries to normal employees, not management or labourers, then the cost of such would be added to salaries as well,bright?
Great video! A few questions...does this video translate to service/coaching based business? As i began to input the information i realised it might change in terms of daily sales, would it still apply or would I Change it to monthly sales or weekly sales? Also there are various services offered with different prices do i still put the information as normal or would that format change too? sorry for all the questions but i really like this video and what to know if it can still be used.
Hi Lauren, All great questions. I do use a version of this model explained for business consultants. So, it would need to be modified, but it is possible to use. As for services, you can either structure it by service or average customer sales price. Hope this helps. Paul
That will be coming in a new video, which I will be releasing soon. In the mean time, check out my how to write a business plan book. www.amazon.com/dp/B07WGXJ1FK
Hi Paul, your this post is highly incisive. I have finished 5 year projection based on your video. High indebted. However, requesting clarification please.In 12 month projection, Month 2, C33, shouldn't it also be multiplied by 30 days. Or, If I change in month to 20 days in C31, the result would be different. Not sure though. This is the only part I couldn't figure out. Requesting you to please suggest.
Hi Feroz, Thanks for the message. At minute 17:02, I show growth rates added for revenues. So, no need to multiply by 30 (days) after month 1 is complete. Hope this help. Paul
@@QualityBusinessConsultant Many thanks Paul for taking time out to consider my question and reply. If I understand correctly, "Month 2" to "Month 12" is not required. Calculations for entire year is based on "Month 1" i.e. 30 days. Therefore, I can delete 30 days from "Month 2" to "Month 12". Regards Feroz.
Hi Paul, Is this information all you need to take to the bank to obtain a loan, as a startup business? Or are there other financial docs you need to bring? The business has not started generating sales.
Hi. Good observation. In some schools of thought, electric may be part of the variable costs. The more you sell, the higher the electric cost. A variable component, which leads to a variable cost. However, in other schools of thought, which I would tend to agree with, would be that electric is a fixed cost. To support this, I would argue that the electric bill needs to be paid monthly, regardless if you have no sales. Thus, a fixed a cost. I hope this helps. Paul
@@QualityBusinessConsultant Thanks for responding. I just want you to know that this video helped my students create their own financial projection for their Business Plan. Very informative Channel.
Hi Frank, I am not understanding your question... for the growth formula, it would be [revenues*(1+growth rate)]. Variable costs would then be a fixed percentage of the new revenue.
@@QualityBusinessConsultant wouldn’t that be assuming that every month has an equal amount of days? Since the month one revenue was based on the amount of days in that month, but all future months are based off 5% growth based on that specific number. Guess my question is, what would a formula for 5% growth look like if working days were reduced to 25?
I must have did something wrong in the steps. Every time I change the Numbers in Product 1 and 2 from 1 to 100, the Total row for the Total Cost and Profit gets this hashtag ######### symbol. What am I doing wrong?
if the column width is smaller than your number, Excel shows ####, pull the right corner of the column to increase width, or double click to automatically adjust. Hope this helps
hey everyone and @Business Plan, how do you change "Days in Month" it only work for "Month 1"" but when i tried to edit for other month it wont work, please help ASAP
Saved my life. Can't believe I just finished my plan in no time. Thank you very much!
Most excellent!
Paul, I just want to thank you! I have been having trouble creating my financial projections, and this video helped my tremendously. May God continue to bless you!
Thank you!! Best of luck!
Took the words right out of my mouth !! 👏🏾
This was awesome!! I tried so many videos and I just completed my financial in under an hour. You are very thorough and straight to the point!!
I especially love at the end where we highlighted the changeable data!! 👌🏾
Wonderful!
I’ve been struggling for months with financial projections and I was looking for so many videos till I came across yours I’m literally smiling ear to ear! God bless thank you so much !!! 🙏🏾🙏🏾
Glad it was helpful!
This is very simple. Its not a little tutorial it's an easily explained and made simple tutorial. Thank you
Glad it was helpful!
Made it so simple what a man
Sweet!
I am so much in love with this video. Thumbs up Sir
Thank you!!
Wonderful and So swiftly it is done, I am loving it Paul Sir. Its worth watching you videos, God Bless You
Many thanks Vinay!!
This is such an easy approach to understand financial projections. Thanks Paul!! You are a gem.
My pleasure!
Thank Paul - you are a genius. Your manner of explaining is so simple and I followed your tutor step by step - I now have a Profit and Loss Account and I know exactly what figures from from where. Excellent! I will certainly sign up with you! Excellent!!!!!
Love it! Glad I could help.
This was the best video I've seen so far to help a business student like myself! Thank you!
same here!
This was exactly what I required to get a basic understanding of the concepts. Thank you so much for the help.
Most excellent!
Oh I love it, the way you explain, I understand everything thing. Thank you
You are most welcome. If you need more help with writing a business plan, check out my new book just published. www.amazon.com/dp/B07WGXJ1FK
This is fantastic. Straight to the point, easy to understand and to carry out. Thank you.
Thanks!
Thanks for this. You simplified financial projection . I have watched many videos on financial projection but yours is exceptional, I am already feeling like a pro with this simplified video of yours
Glad it was helpful!
I am super glad that I found this gem. Great explanation. Easy to understand. Very doable. Format is impressively comprehensive. Saved me from any more financial frustrations. More so, fear of losing. All in all, an absolutely great video!
Thank you! Best of luck!
@@QualityBusinessConsultant I really appreciate your gift of teaching, sir. Not everyone can successfully transfer the knowledge. I will be learning more from your videos. Blessings!
Paul, I watched this video at around 5.50am, and this video made my rest of my life so worry free of calculation of so many thing. I am very weak in math, you have taught me a lesson of my life, which I had all through my 10 business years had to rely on my friend for this kind of calculation. I am thrilled about this video. Loved the way you explain the process is awesome. Now because of this covid I am out of business and cashless, am preparing my business plan to submit to the bank, and have no cash to even pay my rent and bill, I was so hesitating to ask my friend to do this calculation for me as usual, since past four day I have gone through many many videos on you tube, nothing like your video I found, I repeat nothing like your video. I am broke now, if I had cash I would have definitely would have made a payment worth of a course to you. No issue I have saved this video in my account on youtube. I would definitely make the payment once I have enough cash in hand. Thank you once again, from now no more relying on others to make this kind of calculations and making my morning so thrilled, to start the day.
Thank you so much!! Stories like yours are a driving reason why I do the videos.
Paul
This video is the best I have ever seen . I plan on start my small business and was extremely worried about the financial plan section of my business plan but thanks to you I no longer have to worry . You are amazing and am grateful to that you share your video with us without monetarizing it . So So Soooo grateful . Thank You . Such a easy to understand video , literally fool-proof.
Best of luck Shakera!
Good evening Mr.Paul. Thank you so much for this beautiful Video.
I am sure that this video will definitely help me make my business plan for next few years.
You are very welcome
Thank you!!! This was the last piece of my business plan that I was trying to configure. I had all the information you listed but the profit and loss part. Omg thank you, thank you!
Most welcome!!
@@QualityBusinessConsultant how can I turn this into a graph for presentation?
Me too!!! He did great on explaining!!!!
Grateful for you putting the time into this. I followed it all the way to the end and learned what common sizing is, and how projections are done with percentages using the valuable formulas on your tutorial. I pray you continue doing videos as it is a service to the public.
Glad it was helpful!
This is INSANELY helpful!! Thank you so much @Business Plan! What a wonderful gift.
Most welcome!
Thank you so much for this tutorial. I had no idea what I was doing. this was clear and to the point. So easy to understand.
You're very welcome!
Thank you so much!!! I have never been good with numbers and I have been trying to figure out how to do a financial projection. This was such an easy lesson and it was also a refresher for me on how to use Excel.
Most excellent!
it was such a hard thing for me to understand or even out together a restaurant financial projects, you made so easy for me to understand and make my own financial projects , thank you so much!!! Jean-Claude from South africa
Most welcome!
Thank you so much for explaining this! You made it so easy! Now I can complete my financial projections with confidence!
Wonderful!
Many thanks Paul for posting the video. Highly worth the time and efforts. I am able to create my own statements confidently.Quality video. Regards. Feroz.
Most excellent and best of luck!
You are an excellent teacher
Thank you! 😃
Hello thank you so much for this great teaching sir
Most welcome!
Thank you so much for this. It helps me a lot for my business plan.
Love from PH 🇵🇭✨
You're so welcome! Best of luck!!
This was great! Thank you so much for breaking it down now I don’t feel intimidated doing this part of my biz plan.
Glad it was helpful!
Very helpful and elementary for a visual artist to understand. Thanks!
Most welcome.
Thank you!! Check out some of my books at: www.amazon.com/author/paulborosky
awesome tutorial
thank you Paul!!!
Most welcome!!
This was very helpful when creating a profit/loss projection statement for my business plan. Thank you so much Mr. Paul Borosky.
Glad it was helpful!
Great 👍
Thanks!
This is the best video I have come across regarding this topic. Thumb up. It's so great. However, Iwish you can make another video for Balance sheet, and income statement for business plan. Thank you
Thanks Suleiman, the other statements videos are in the works!!
Thank you for your video! Helped me finish my business plan. Well done!!!!!!
Most excellent! Check out my "How to start a business in Ten Steps" if you are starting one.
This is amazing.Thaank you
Most welcome!!
Thank you for such a well-explained video!!
You're very welcome!
Hello Paul, Many Thanks for the tutorial .... it was very much understandable and simple with most of the info needed ....
Thank you again - DRC.
Glad it was helpful!
Thank you very much for this video!!!
You're very welcome!
Clean and simple. Very Helpful. Thank You.
Sweet! Check out some of my books on Amazon too.
www.amazon.com/author/paulborosky
simple wins all the time - thanks a lot
Most welcome.
Thank you sooo much!! This was sooo great and sooo helpful!! Thank you!!
You are most welcome. Check out some of my books on Amazon too.
This was very tutorial!!!! You're AWESOME!!!! THANK YOUUUUUUUUUU!!
Glad it was helpful!
Thank you so much, this is the simple way to do financial projection!
Most welcome!!
Amazing, it helped me much
Glad it helped!
Thank you soo much... This was great and helpful!!! Thank you♥️
You are so welcome!
Thank you thank you!! This was a great help
Sweet! Best of luck.
Amazing video Paul, many many thanks!
one consideration I would like to ask you about is how to make the 12 month forecast more accurate for a small business that only has labour for 5 days a week excluding weekends in each given month. I have used this video and template to forecast but found that the maths became much more tricky once you try to factor in the actual days in a month, and then total labour days per month too. It raises the question that maybe i'm trying to be too accurate for a projection or not. . ?
many thanks !
Hi, Thanks for the kudos! Correct, it does get exponentially harder for each variable added. I would recommend checking out any one of my 100+ business plan templates, which includes a financial model. Here is the link...
qualitybusinessplan.com/business-plan-templates/
Hope this helps.
Paul
Excellent video!
Thank you very much!
@@QualityBusinessConsultant I noticed you have business plan videos on a variety of businesses, could you do one for home care?
This Helped me so much, THANK YOU SO SO SO SO MUCH❤️
Glad it helped!
Number one 💯💪
Thanks!
Hi Paul, I wanted to ask how would I project what my daily sales would actually be if I have not started the business yet? Loved the video
Hey Anu, Good question and I get asked that alot. Its actually quite simple... You can't.
Consider this, two convenience stores are located on opposite sides of the street... Its a fact that one will make more daily revenues than the other, even if they sell identical products with no differences in price... Often times much more. Variables that may impact sales could be management team, customer service, brand name (Wawa or Circle K), or ease of entry/exit.
From this, use projections based on how many customer you THINK you can service, on average daily. Then use your projections as benchmarks.
I hope this helps.
Paul
@@QualityBusinessConsultant wow thank you so so much Paul this was a great help. And such a quick response. You've gained a subscriber!!❤️
Thank you Paul
Most welcome!
thank you this video was helpful
Glad it was helpful!
Best video ever! I salute Paul. Now, on the P&L, why didn't u total the P/L for the 12month period? Didn't see that column.
Dr. Sunkutu,
Thank you for the kudos!! As for the p/l for 12 months, I did not expand upon it because of the growth rates needed for each line item, season changes to month to month revenues, etc. Kinda wanted to keep is relatively short and sweet. However, hopefully, I will have time soon to do a follow-up video.
Paul
Extremely helpful!! Thank you!!
Excellent!
Thank you soo much. This was a great help for me.
Most welcome!
AMAZING!!
Thanks!
I would like to ask, Is it possible to include the initial investments in equipment and its depreciation cost for this format? If so where should I put it? Thank you.
Hi, Thanks for the message. Sorry, the initial investments are more aligned with the balance sheet whereas this video is focused on income statement items (I know, depreciation is also on the income statement, I am going more for simplicity in the video though). However, I will be doing a video soon focused on this topic. Paul
@@QualityBusinessConsultant thank you so much for your response. May I ask one more time? What if the business is more on service type? Like a travel agency. How can they input their daily sales? What can you suggest about this? Thank you so much! You have been very helpful.
Thank you sir for your video
Amazing video! Very helpful!
Very welcome. Glad I could help.
Thank you!! Check out some of my books at: www.amazon.com/author/paulborosky
Awesome video. Thank you.
Most welcome!! Check out some of my books at: www.amazon.com/author/paulborosky
How do you turn this into yearly data?
He linked it in the bio ~
thanks so much!! this was amazing
Most welcome!!
Thank you so much It helps a lot.
Most welcome!! Check out some of my books at: www.amazon.com/author/paulborosky
Thank you, this was great help! Why didn't you include federal and state taxes in the "profit and loss" statement?
Should I include those?
Hi Omar,
You can add an additional line to include taxes. But then you would also need to include amortization and depreciation. I just wanted to kinda keep it simple.
Best of luck!!
Paul
Thank you.
Hi, it was really helpful. Could you please make a 3 year financial projection for a startup and how to pitch it.
Thanks
That will be coming in a new video, which I will be releasing soon. In the mean time, check out my how to write a business plan book. www.amazon.com/dp/B07WGXJ1FK
@@QualityBusinessConsultant how can i get this in Qatar
Please help me
Thanks its very nice
Thank u so much sir....
Most welcome
What about Balance Sheet?
Thankyou, very useful!
Most excellent!
This is awesome and very helpful. I would like to set up a zoom call to introduce myself. I will reach out through your website. Thanks Belinda
Glad it was helpful!
Thank you so much
You're most welcome
Thank you!
You're welcome!
So, since you included labour costs, I'm assuming this is likely for manufacturing business, right?
If you paid only salaries to normal employees, not management or labourers, then the cost of such would be added to salaries as well,bright?
Labor costs would be the same as employee pay. Just a different name. You could also add employee costs to salary as well. The model is flexible.
Great video! A few questions...does this video translate to service/coaching based business? As i began to input the information i realised it might change in terms of daily sales, would it still apply or would I Change it to monthly sales or weekly sales? Also there are various services offered with different prices do i still put the information as normal or would that format change too? sorry for all the questions but i really like this video and what to know if it can still be used.
Hi Lauren, All great questions. I do use a version of this model explained for business consultants. So, it would need to be modified, but it is possible to use. As for services, you can either structure it by service or average customer sales price. Hope this helps. Paul
How can I create a graph from this?
That will be coming in a new video, which I will be releasing soon. In the mean time, check out my how to write a business plan book. www.amazon.com/dp/B07WGXJ1FK
This is amazing
Thank you!
Very good video
Thanks
THANK YOU
Most welcome
Nice video Paul!
Thank you!! Check out some of my books at: www.amazon.com/author/paulborosky
thank you so much
You're welcome!
Hi Paul, your this post is highly incisive. I have finished 5 year projection based on your video. High indebted. However, requesting clarification please.In 12 month projection, Month 2, C33, shouldn't it also be multiplied by 30 days. Or, If I change in month to 20 days in C31, the result would be different. Not sure though. This is the only part I couldn't figure out. Requesting you to please suggest.
Hi Feroz, Thanks for the message. At minute 17:02, I show growth rates added for revenues. So, no need to multiply by 30 (days) after month 1 is complete. Hope this help. Paul
@@QualityBusinessConsultant Many thanks Paul for taking time out to consider my question and reply. If I understand correctly, "Month 2" to "Month 12" is not required. Calculations for entire year is based on "Month 1" i.e. 30 days. Therefore, I can delete 30 days from "Month 2" to "Month 12". Regards Feroz.
Hi Paul,
Is this information all you need to take to the bank to obtain a loan, as a startup business? Or are there other financial docs you need to bring? The business has not started generating sales.
Hi Jendy, It all depends on the lender. Its a good start though.
@@QualityBusinessConsultant Great! Thanks!
I just want to know why is electric part of your fixed cost? Should be part of Variable Cost right?
Hi. Good observation. In some schools of thought, electric may be part of the variable costs. The more you sell, the higher the electric cost. A variable component, which leads to a variable cost. However, in other schools of thought, which I would tend to agree with, would be that electric is a fixed cost. To support this, I would argue that the electric bill needs to be paid monthly, regardless if you have no sales. Thus, a fixed a cost. I hope this helps.
Paul
@@QualityBusinessConsultant Thanks for responding. I just want you to know that this video helped my students create their own financial projection for their Business Plan. Very informative Channel.
What would the Revenue*growth formula look like with variable running days each month?
Hi Frank, I am not understanding your question... for the growth formula, it would be [revenues*(1+growth rate)]. Variable costs would then be a fixed percentage of the new revenue.
@@QualityBusinessConsultant wouldn’t that be assuming that every month has an equal amount of days? Since the month one revenue was based on the amount of days in that month, but all future months are based off 5% growth based on that specific number. Guess my question is, what would a formula for 5% growth look like if working days were reduced to 25?
Content Suggestion: How to make financial plan for a business plan using excel.
I must have did something wrong in the steps. Every time I change the Numbers in Product 1 and 2 from 1 to 100, the Total row for the Total Cost and Profit gets this hashtag ######### symbol. What am I doing wrong?
Nvm, I figured it out. I didn’t have my columns wide enough.
if the column width is smaller than your number, Excel shows ####, pull the right corner of the column to increase width, or double click to automatically adjust. Hope this helps
thank you so much !
Most welcome.
Mantap sir
Thank you!
Can anyone tell me if the total revenue number includes sales tax?
It does not.
This was awesome!!
Most excellent!!
Ty
Most welcome!
hey everyone and @Business Plan, how do you change "Days in Month" it only work for "Month 1"" but when i tried to edit for other month it wont work, please help ASAP
This was great,toom me an hour but it was good Sir thank you!
Most excellent!
Highly recommended! Thank you so much sir Paul..🤍
My pleasure!
Thank you so much!!! It was really helpful.
Glad it helped!
THANK YOU!
Most welcome!