Are you preparing to create documents to present your business to others? If so, you’ll need to create financial projections for the business plan, Pitch Deck, or any other type of presentation document. This can be one of the most important aspects of your presentations.
There are a number of reasons this information is so important to your audience. It doesn’t matter who your audience is, either. The focus may differ but, they are important regardless. Here is some basic information you need to know.
They Quantify the Full Plan
If your document is written well, it will tell a story. The Financial Projections Business Plan or pitch deck do the same thing. They will tell your business’s story numerically. This is where you will quantify everything you’ve explained throughout the rest of the document.
As an example, the price you’ve decided to charge for your product combined with your expected sales volume will become your revenue. Your market research and marketing plan will have helped decide what these numbers will be.
Show Where Your Company Has Been
When you present the Financial Projections in the business plan or pitch deck, there are a number of things that your audience will want to know. If your business has already been in operation, they will expect to see historic figures. Although “actuals” are not projections, they will inform the projections.
Historic actuals are one of the many things that will help justify the financial projections. Your projections can’t simply be a guess. They need to be supported by other information. The actual performance or committed future sales, will help to support the numbers you include.
Show Where Your Company is Going
The main role of financial projections in the Business Plan or pitch deck is to show where your company is going. That’s what they are all about, projecting the future. The main purpose of presenting your documents to someone is to paint a picture of the business’s future.
Think about it, it works in every instance. If you’re applying for a bank business plan, trying to convince an investor to invest, trying to bring on a partner, or trying to secure a lease, it’s all about the future. It answers many questions about the future. Will the business succeed? How much return might I get (as an investor)? What is the market likely to do? How will the company adapt to anticipated – an unexpected – changes?
Financial Projections: Arguably the Most Important Aspect
It should be clear now just how important and informative the financial projections are in the business plan, Pitch Deck, or any other type of business document. They aren’t separate from the rest of the plan. Rather, they bring the entire plan together in numerical form.
Business, at the end of the day, always comes back to the numbers. No matter your audience, they are going to have questions around the numbers in one aspect or another. Make sure to give this section the attention it is due. If you do that, and make sure that they tie in the rest of your plan, you will be one step closer to success.
No comments:
Post a Comment