Whether you’re a startup looking to raise venture capital or an established small business, it’s important to have a strong understanding of your revenue potential. Doing so will give you the confidence and credibility you need to successfully negotiate with investors, lenders, partners, and other stakeholders. This article will show you different ways to create revenue projection templates that will help you calculate your revenue projections like a pro.
If you are looking for a free, web-based spreadsheet that has many of the features of Microsoft Excel but is more user-friendly and easy to use, Google Sheets is a great choice. It’s also available on most major phones and tablets through their respective app stores.
Whether using it in an office or at home, Google Sheets will be familiar territory for anyone who has used Microsoft Excel. It has many of the same features as its big brother but without having to pay for any software licenses.
Because Google Sheets is cloud-based, it’s accessible from anywhere that you have internet connectivity—even if you’re using your phone. And this means that no matter where your business takes you next year (or even next month), everything will be organized together in one place so there’s no need for paper copies anymore either.
This template is the most basic option for startups. It includes the basic elements of a spreadsheet-based revenue projection and forecasting plan, including:
- Projected sales figures for each year of your business’ life cycle
- Branding and marketing strategies that you’ll use to attract customers
- Customer satisfaction surveys or other means of gathering feedback about customer experience (this section is optional)
The template makes it easy to update these data points as needed. After inputting your numbers into each cell, save the document as a PDF file and send it off to your accountant.
Revenue projection templates can help you manage your business’ finances, plan for growth and prevent a cash crunch. A well-crafted template will allow you to easily see how much money you’re making, where it’s coming from, and if any changes need to be made.
Here’s what you’ll need:
- Microsoft Excel (or another spreadsheet program)
- A financial goal for the year that includes all revenue streams (such as subscriptions, memberships, or advertising)
To create a solid revenue projection, you need to understand your business. What is it? How does it function? Who are the people that make up your customer base, and what do they want from you? If a new product or service comes along, who will be affected by its introduction, and at what level?
What are your competitors doing in terms of product development and marketing campaigns? How many other companies offer similar services or products as yours—and how much do they charge for those goods or services? Are there any other factors that could impact how much money you bring in each year (e.g., sales tax increases)?
Knowing these things will help you determine how much money is coming through the door. Once that number has been established, it’s time for planning out how much cash flow (cash available after expenses) will be left over for growth initiatives such as hiring more employees or launching new products or services within the next year or two.
If you’re looking to get your revenue projections right, check out these templates. They’ll help you make smart plans for your business and keep it healthy in the long term.