Part of Dr. Paul's Small Business Education
Pro Forma Financial Projections Tutorials
Your business plan can read great and still get turned down if the numbers don't hold up. Lenders and investors look hardest at the financial projections, because that's where they see whether your business can actually pay them back. If the projections are vague or unrealistic, the deal stalls.
These tutorials fix that. Dr. Paul Borosky, DBA, MBA walks you through building pro forma financial projections one piece at a time, revenues, labor, startup costs, fixed costs, growth rates, best and worst case, and loan payments, so you move from guessing to numbers you can defend. Whether you're writing the plan yourself or just want to understand the model behind it, start at Step 1 and follow the series.
Of small business owners say managing cash flow stresses them out at least a few times a year. Projections turn that stress into a plan you can see coming.Source: Bluevine 2026 Business Owner Success Survey
Key Takeaways
- Pro forma projections are the part of your plan lenders and investors scrutinize most.
- Good projections start with clear, documented assumptions, not optimistic guesses.
- The series builds the model step by step, from revenues to loan payments.
- Pair these tutorials with a business plan template and its Excel model to build your own faster.
Mastering Pro Forma Financial Projections: The Series
Seven steps that build a complete pro forma model, plus a starting tutorial on assumptions. Watch them in order, or jump to the piece you're stuck on.
Customizing the Excel Financial Model
Two walkthroughs for owners using Dr. Paul's business plan template, showing how to make the included Excel model your own.
What Pro Forma Statements Actually Do for You
Pro forma financial statements are forward-looking projections of where your business is headed, built on your current numbers and a set of clear assumptions. They're not just a box to check for a lender. Used right, they're a decision-making tool. Here are the main ways owners put them to work.
Of owners say their cash flow problems stayed the same or got worse over the past year. Only 26 percent improved.Source: QuickBooks financial literacy data, 2025
Of US small businesses can't make ends meet because of cash flow issues, the kind a forecast warns you about early.Source: PYMNTS Intelligence, via Barnum Financial Group
Many profitable businesses still fail from poor cash flow management. Projections show the timing profit alone hides.Source: Escalon, financial literacy for business owners
Plan the Business
Forecast revenue, costs, and profit against your goals, then test moves like a new location or product before you spend a dollar.
Manage Cash Flow
See the months where cash runs tight before they arrive, so you can plan around a shortfall instead of getting caught by it.
Attract Investors
Show backers a clear, realistic picture of future profit and growth. A strong projection is often what wins the funding.
Manage Debt
Prove you can service a loan before you take it on, and avoid over-leveraging the business into trouble.
Assess Risk
Run best, worst, and likely cases so you know how the business holds up if things go sideways, and have a plan ready.
Set Pricing
Model how a price change moves your margin and profit, so pricing decisions are based on numbers, not gut feel.
Want to go deeper on the model behind these uses? The financial projections service page and the templates give you the full Excel model to build them yourself.
Want Your Projections Built for You?
Learn the model here, or hand it off. Dr. Paul builds pro forma financial projections and full business plans with owners one-on-one. No junior consultants. No hand-offs.
Frequently Asked Questions
What are pro forma financial projections?
They're forward-looking financial statements that estimate your future revenue, costs, cash flow, and profit based on your current numbers and a set of assumptions. Lenders and investors use them to judge whether your business can grow and repay what it borrows. They're the financial heart of a business plan.
Where should I start in this series?
Start with the assumptions tutorial, since every projection is built on the assumptions underneath it. Then work through Step 1 (revenues) to Step 7 (loan payments) in order. Each step builds on the last, so by the end you have a complete, defensible model.
Do I need accounting experience to follow these?
No. The tutorials are made for business owners, not accountants. Dr. Paul explains each piece in plain language with practical examples, and several steps use an Excel model so you can see exactly how the numbers fit together. If you can run a business, you can follow these.
Can I just have Dr. Paul build my projections?
Yes. These tutorials are here if you want to learn or build it yourself. If you'd rather have it done, Dr. Paul builds pro forma projections and complete business plans with owners one-on-one. The tutorials and the done-with-you service both lead to the same place: numbers you can stand behind.
About the Author
Dr. Paul Borosky, DBA, MBA
Dr. Paul Borosky, DBA, MBA is a CEO Partner and business consultant, founder of Quality Business Plan, creator of Dr. Paul's Organize-Plan-Grow™ Strategy, and publisher of more than 1,000 business-focused videos on YouTube. With an MBA in finance from Webster University and a DBA from National University, he has spent over 14 years helping more than 1,000 owners build financial projections and business plans that fund and grow. Learn more about Dr. Paul.
Call or text Dr. Paul Borosky, DBA, MBA at (321) 948-9588 · paulb@qualitybusinessplan.com · Deltona, FL · Mon-Fri 9 AM to 5 PM
Last Updated: 6/2/2026 · Reviewed by Dr. Paul Borosky, DBA, MBA
Economic statistics and figures on this page are presented to the best of our knowledge based on publicly available information at time of publishing. Figures may change over time. Always verify current details before making business decisions.