Build simple financial projections

Financial projections are your best estimate of revenue, costs, and profit for the first year or two. They prove the business can make money — and show you the numbers you need to hit.

Do this

1. Estimate monthly revenue based on your pricing and realistic sales volume.
2. List your monthly expenses, fixed and variable.
3. Project profit (revenue − expenses) month by month for 12 months.
4. Find your break-even point — when sales cover your costs.

First-Year Projection Basics

Build a simple month-by-month estimate:

REVENUE = price × expected units sold − EXPENSES = fixed (rent, software) + variable (materials) = PROFIT

Then find BREAK-EVEN: the sales level where revenue covers all costs.

Break-even units = Fixed Costs ÷ (Price − Cost per unit)

Keep it realistic and conservative — it's better to beat a modest plan than to miss an optimistic one. A SCORE mentor can review it for free.