Question

Please help!!! I've been working on a project in which I assume I've been funded with half a million dollars. Based upon that, I need to develop a 3 Year Profit & Loss projection with an explanation as to how I would achieve sales growth (including the key part of what significant expenses and investments I can expect to incur in order to achieve the revenue goals).

Answer 1

First of all decide the sector in which you are going to prepare projections.

Then identify the key areas for the business.

Lets suppose in case of manufacturing industry, you will have raw material cost is high and with the increase in sales raw material consumption increases.

U need to consider the sales growth based on the competitors movement in the industry.

To corresponding increase we need to increase the expenses.

Expenses like

Labour Charges, Electricity charges, Raw material consumed, Salaries, Staff welfare expenses, PF,PT, Rates & taxes, Fuel, Food expenses, Repair & Manintenace, Upkeep cost, vehicle maintenance, Admin expenses etc.

While projecting the salaries we need to consider the count of employees.

We have to consider the inventory days, Receivable days to project them.

Whatever the funds we have, we need to invest in fixed assets and for working capital which should be allocated property, Based on fixed assets, depreciation will be charged.