How To Do Crowdfunding – Your Financial Forecast
Your financial forecast helps investors to understand the future of your business and make judgements about its potential. It’s challenging to make future predictions when your business hasn’t even started yet, but it’s vital to earning the confidence of your investors- a business with long-term aspirations is an attractive prospect.
Feel like you’re running off guesswork? Don’t despair, here’s how to create a basic forecast.
You should project, at a minimum, 3 years into the future, covering both the short, mid and long-term. For year 1 at least, break for forecast down into specific monthly detail. Is your business highly seasonal? Does it have certain busy periods? Outline them clearly. If you’re out of pocket before your busy period kicks in, you might need extra funding. Let’s say you’re releasing a new product and marketing campaign halfway through your forecast and expect a boom in trade. Can you explain why you expect this? How much will the marketing cost? Show how the investment will benefit all those involved. If you’re planning extensive advertising, demonstrate why it’s going to bring in more money than it’ll cost.
Refer back to a clear profit and loss wherever possible. Remember not to underestimate costs. In fact, if you can overestimate them and stay in the black, your success will be all the more likely.
Just like your business plan, your financial forecast provides investors with the information they need to back your business. If handled well, it’ll give you confidence about the inevitable success of your company and give you the motivation you need to hit your funding goal.
How To Do Crowdfunding Free Tool – Financial Forecast Template
To make things simple, download our financial forecast template at the link below.
Claim your free Financial Forecast Template
How To Do Crowdfunding – Advice on how to create your financial forecast?
We can help. Drop The Crowdfunding Studio are proud partners of Crowdcube and Indiegogo. We assist ambitious businesses in communicating their ideas, products and services with outstanding crowdfunding video production, campaign design, crowdfunding marketing and crowdfunding PR.
To learn more about us and our services, visit our website: drop.studio
Or book a free phone workshop today and ask us anything, like how to create a successful crowdfunding campaign or how to accelerate your business from zero to fully funded.
Want to know How To Value Your Business And Set Your Crowdfunding Goal Accordingly? See our next article