Review: Financial Forecast

Financial Forecast Images

Why Financial Forecasting Is Essential in Business Planning
A financial forecast is a critical component of any business plan because it helps predict the financial future of a business. It guides decision-making, sets financial goals, tests the viability of the business model, and supports funding applications. A clear forecast helps entrepreneurs understand how much money is coming in and going out, ensuring sustainability and growth.
 
Key Financial Terms:

• Revenue:
  This is the income a business earns from selling its products or services. It's the starting point of the financial forecast and reflects the business’s ability to generate sales.
• Cost of Sales (CoS):
  These are the direct costs of producing or delivering your product or service. Examples include materials, labour for production, or contractor payments tied directly to each sale.
• Operational Costs:
  These are ongoing expenses not tied directly to individual sales but necessary for the business to function. Examples include rent, software subscriptions, marketing, and salaries for admin staff.

 
Bizezi App Integration with BMC:

• Key Activities = Cost of Sales
  In the Bizezi App, your Key Activities in the Business Model Canvas (BMC) are the core actions needed to deliver your product or service. These activities directly relate to Cost of Sales, as they often require spending money (e.g., delivering workshops, manufacturing, or one-on-one consulting).
• Key Resources = Operational Costs
  Key Resources in the BMC are the assets and tools you need to run your business—like staff, office space, technology, or vehicles. These align with Operational Costs, as they require ongoing funding to keep the business operating smoothly.

 This mapping helps users of the Bizezi App better understand how their business structure translates into financial outcomes.
 
Disclaimer: Bizezi Ltd, in providing this information, cannot guarantee the success of a business concept, idea that is developed through the Bizezi App to a financial forecast. The information provided, correctly implemented, will actively support the development and potential growth of a business.

Helpful Links and Documents for review:
​​​Click Here to see the Financial Forecast Workbook
Click here for top tips on the Business Model Canvas.
For additional support please email: [email protected] ​

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