Starting a business is not as simple as it sounds where you only need the product and the funding for operation. You are, after all, pouring your money out and investing in hopes of getting it back with profit included, it is critical to ensure that you will earn it back in the first place. Therefore, you will need more than just simply a product and the funding. That’s right, you will need a business plan which will help you create a structured framework of your business, especially the handling of your financials and other resources.
Money management is one of the most important part of running a business for this will determine whether your business will be feasible in the long run as well as profitable enough for you to reach break-even and earn some more. There are many ways one can go about the process of handling your financials, however, the best and most common tool used by entrepreneurs and other business-minded people, is a financial model.
Basically, a financial model is a tool that’s usually built in Excel spreadsheet to help you forecast a business’ financial performance. The financial projection will be based on the business’ historical performance, assumptions about the future, the financial statements, and other factors that affect the resulting projections. With a financial model, you will be able to track your financials, anticipate risks and cash flows, allocate resources, and many more. Most importantly, it is a great tool that will help you get an insight for future decision-making.
Needing a financial model is quite obvious, but creating one is another thing. Not every entrepreneur or startups are good with financial modeling, as such, the process can be quite daunting and time-exhausting. However, it is not the end of the world for them since it is easy to acquire ready-made financial projections template which can be used as a base to start with or as a reference once they create their own financial models.
If you need to download financial projections template, you can get them at eFinancialModels, a platform which offers a wide-range of industry-specific financial model templates for different use cases created by financial modeling experts with a wide-range of know-how and vast experience when it comes to financial modeling tasks. There are also FREE financial projections template which you can download here: FREE Financial Model Templates.