12-Month Profit and Loss Projection

Many business owners think of the
12-month
profit and loss projection as the centerpiece of their
plan. This is where you put it all together in numbers and get an
idea of what it will take to make a profit and be successful.

Your sales projections will come from a
sales forecast in which you forecast sales, cost of goods sold,
expenses, and profit month-by-month for one year.

Profit projections should be
accompanied by a narrative explaining the major assumptions used to
estimate company income and expenses.

Research Notes: Keep careful notes on
your research and assumptions, so that you can explain them later if
necessary, and also so that you can go back to your sources when it’s
time to revise your plan.