Creating a financial forecast is essential for any new business or project. But what if you don’t have historical data to guide your projections? Whether you are launching a new company, introducing a product line, or stepping into a new market, a financial forecast without historical data can feel overwhelming. However, with the right approach and tools, you can build a credible financial forecast that supports strategic planning and attracts potential investors. Here’s how to get started.
\n\n\n\nA financial forecast estimates your future revenue, expenses, and cash flow based on assumptions about your business’s performance. It helps you set realistic goals, allocate resources effectively, and identify potential financial challenges before they arise. For startups and new projects, a financial forecast is more than just numbers on a spreadsheet, it’s a strategic tool that can guide decision-making and growth.
\n\n\n\nThe first step in creating a financial forecast is identifying the key metrics influencing your business’s performance. These are your Key Performance Indicators (KPIs) and can include factors like the number of leads generated, conversion rates, and average transaction value. Understanding these metrics allows you to build a foundation for estimating revenue and expenses.
\n\n\n\nFor example, if you’re launching an e-commerce website, your primary KPIs might include website traffic, the percentage of visitors who purchase, and the average order value. Identifying these metrics provides a structured approach to forecasting and helps you outline a financial forecast based on realistic business dynamics.
\n\n\n\nWhen historical data isn’t available, market research and industry benchmarks can serve as valuable resources. Investigate how similar companies perform in your industry and analyze key metrics like customer acquisition cost, average order value, and sales cycle duration. Industry benchmarks provide a reference point that helps set expectations for your financial forecast.
\n\n\n\nAdditionally, leverage external data from market studies, industry reports, and competitor analysis to enrich your assumptions. These insights can help you estimate revenue potential and provide a clearer picture of the competitive landscape, enabling you to make informed projections.
\n\n\n\nA clear structure for revenue and expense categories simplifies the forecasting process. Start by outlining your revenue streams and expense categories. For example, your revenue streams could include product sales, subscription services, or consulting fees. Expenses might be categorized into fixed costs (like rent and salaries) and variable costs (such as marketing spend and production costs).
\n\n\n\nBreaking down these categories will make developing a detailed financial forecast easier. Remember to be specific and include all relevant categories to ensure that your projections are comprehensive.
\n\n\n\nBegin by making educated guesses for each category based on the data you have. Forecasting for revenue can be based on factors like the expected number of customers and the average revenue per customer. On the expense side, consider fixed and variable costs that your business will incur during the forecast period.
\n\n\n\nIt’s crucial to recognize that these are initial projections and not definitive numbers. You are building a foundation that will be refined as you gather more data and gain a better understanding of your business operations. Aim to establish a baseline financial forecast that outlines a realistic view of your first year of operations.
\n\n\n\nGiven the uncertainty that comes with a lack of historical data, it is advisable to create multiple financial scenarios. This approach helps you evaluate the impact of various situations on your business’s financial health. Develop three scenarios: base case, best case, and worst case.
\n\n\n\nBuilding these scenarios gives you a range of potential outcomes and helps you prepare for different financial situations, making your financial forecast more robust and actionable.
\n\n\n\nConsider how external factors like seasonality, market trends, and economic conditions might affect your financial forecast. For example, if your business is in retail, you may experience higher sales during certain times of the year, such as the holiday season. Factoring in these trends ensures that your projections are more accurate and reflective of real-world conditions.
\n\n\n\nAdditionally, stay updated on market dynamics and industry shifts that might influence your projections. Regularly reviewing and adjusting your financial forecast based on these trends will align your business strategy with the market environment.
\n\n\n\nConfidence levels reflect how certain you are about the assumptions used in your financial forecast. Evaluate each assumption based on market research, experience, and initial results. For example, if you are less confident about your conversion rate, consider lowering it in your base scenario and making gradual adjustments as you validate it with real data.
\n\n\n\nThe goal is to refine your projections to be as realistic as possible, even when starting from scratch. By adjusting your confidence levels, you can create a financial forecast that better reflects the uncertainty and complexity of a new business.
\n\n\n\nOnce you have your revenue and expense projections, it’s time to analyze cash flow. Determine whether your initial cash reserves will be sufficient to cover expenses until you become cash flow positive. If not, identify your funding needs and consider whether you’ll require external investment or additional financing.
\n\n\n\nThis step is crucial for new businesses, as it helps you understand your cash position and plan for periods of low liquidity. A solid cash flow analysis will also make it easier to present your financial forecast to potential investors or stakeholders.
\n\n\n\nReview your financial forecast to ensure it aligns with your business goals and market realities. Validate assumptions, refine scenarios, and update projections based on new insights. Your financial forecast should be a living document that evolves as your business grows and more data becomes available.
\n\n\n\nFinally, remember that a financial forecast is not a one-time exercise. Monitor your actual performance against your forecast regularly and make adjustments as needed. As your business generates more data, incorporate it into your projections to refine your assumptions and improve accuracy. This ongoing process will strengthen your financial forecast and support your business’s long-term success.
\n\n\n\nCreating a financial forecast without historical data is challenging but achievable with the right approach. Start with clear assumptions, research industry benchmarks, and develop multiple scenarios to cover different outcomes. By following these steps, you can build a solid foundation for your business’s financial planning.
\n\n\n\nModeliks offers comprehensive tools and expertise to help you implement effective practices. Reach out to us for expert guidance and sign up for Modeliks free trial today to unlock better financial management for your business.
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\n\n\n\nAccording to industry benchmarks, average restaurant net profit margins range from just 3% to 6% for full-service establishments, while quick-service restaurants may perform slightly better. Small improvements in efficiency or revenue drivers can be the difference between struggling and thriving.
\n\n\n\nThat’s why driver-based financial planning is becoming essential for restaurant owners, accountants, and consultants. Instead of relying on static spreadsheets or simple revenue projections, it ties operational drivers directly to financial outcomes — giving decision-makers more clarity and control.
\n\n\n\nDriver-based planning connects the key operational levers of your restaurant (the “drivers”) with your financial statements and forecasts.
\n\n\n\nInstead of saying “we’ll grow revenue by 10%”, you ask:
\n\n\n\nBy building financial models around these real-world inputs, you create forecasts that are more accurate, more dynamic, and easier to explain.
\n\n\n\nTable-turns measure how many times a table is occupied during a meal service.
\n\n\n\n👉 Increasing table-turns by even 0.2 per service can significantly lift revenue without adding more seats.
\n\n\n\nYour average check is simply:
Total revenue ÷ Number of covers served
Upselling, smart menu engineering, and bundles can lift check size by 10–15% – directly boosting top-line revenue.
\n\n\n\nFood costs typically range between 25%–35% of revenue depending on concept. Tracking recipe yields, supplier prices, and waste levels helps protect gross margins. Even a 1–2% reduction in waste can translate into meaningful profit improvements.
\n\n\n\nLabor is often the single largest controllable cost in restaurants – commonly 25%-35% of revenue. By modeling staffing against expected covers and dayparts, owners can avoid overstaffing during quiet hours and understaffing during peak times.
\n\n\n\nWhen restaurants model table-turns, average check size, food cost %, and labor as part of their financial forecasts, they get:
\n\n\n\nExample:
A small 80-seat restaurant increases average check size by 5% (from $25 to $26.25) and improves table-turns from 3.0 to 3.2 per service. Combined, that’s nearly a 10% uplift in revenue without expanding staff or space.
Traditionally, building driver-based models requires complex spreadsheets and formulas. With Modeliks, restaurant owners and their advisors can:
\n\n\n\nModeliks removes spreadsheet chaos and helps restaurants move from guessing to planning.
\n\n\n\nRestaurants don’t live and die by revenue – they succeed or fail based on their drivers. By planning around table-turns, check size, food cost, and labor utilization, operators can make confident decisions and unlock profitability.
\n\n\n\nWith the right tools, each restaurant owner can turn complex financial planning into an actionable framework.
\n\n\n\n👉 Want to see how driver-based planning works in practice?
Start your 15-day free trial, choose a plan, or contact us on: contact@modeliks.com for a demo session.
Enjoy Modeliks! We know we are!
\n\n\n\nAuthor:
Modeliks Team
The accounting profession is shifting. Compliance and bookkeeping remain essential, but today’s clients expect more. They want guidance on how to run their business smarter, manage cash flow, and plan for the future.
\n\n\n\nAccording to a CPA.com survey:
\n\n\n\nThis means the demand is already there. The opportunity for accounting firms is clear: move beyond bookkeeping into high-margin advisory services.
\n\n\n\nFor most small and mid-sized firms, the hesitation is simple:
❌ Limited staff time
❌ No standardized tools for forecasting & reporting
❌ Concern about overcomplicating workflows
The good news? Advisory can be delivered at scale, without adding headcount or creating inefficiencies — if you have the right system.
\n\n\n\nModeliks helps accountants transform their existing relationships into advisory partnerships by automating the heavy lifting.
\n\n\n\nHere’s how it works in practice:
\n\n\n\n1️⃣ Connect QuickBooks in Minutes
Sync client actuals directly — no messy spreadsheets or manual imports.
2️⃣ Build Budgets & Automated Financials
Instantly generate a forward-looking P&L, Balance Sheet, and Cash Flow statement, tailored to each client.
3️⃣ Deliver Dashboards & Variance Analysis
Clients see Actual vs. Plan vs. Previous Periods. You provide insight into why numbers moved — without building reports from scratch each month.
Firms using Modeliks see:
✅ New revenue streams by offering planning & reporting as premium packages
✅ Higher client retention thanks to consistent value beyond compliance
✅ No extra headcount required, since processes are automated
✅ Improved positioning as trusted advisors, not just bookkeepers
As one accountant put it:
\n\n\n\n\n\n\n\n\n“Our clients can now make confident decisions. For us it’s a game-changer — we finally sell insight, not just compliance.”
\n
Client expectations are rising. Competitors are moving into advisory. Technology makes it easier than ever to scale.
\n\n\n\nIf you’re an accountant or firm owner, now is the time to position your practice for the next decade. Advisory services are not just an add-on — they’re the future of accounting.
\n\n\n\n📽️ Watch the full video playbook here: https://www.youtube.com/watch?v=UlQEwnWOdKQ.
🌐 Explore how Modeliks can help you launch advisory services in under an hour -> HERE.
📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.
\n\n\n\nEnjoy Modeliks! We know we are!
\n\n\n\nAuthor:
Modeliks Team
Running a professional services business is demanding. Whether you’re a founder, consultant, accountant, or finance leader, the challenges are similar:
\n\n\n\nThe truth? Many services firms outgrow spreadsheets faster than they realize. A project-based business requires a planning and reporting framework that adapts as you grow – not one that breaks every time a new client, project, or team member comes onboard.
\n\n\n\nThat’s where having a structured financial planning and reporting system becomes a game-changer.
\n\n\n\nThis strategic framework is designed for:
\n\n\n\nIf you run a project-based business, use timesheets, or manage multiple clients, this playbook is for you.
\n\n\n\nProfessional services firms often face profitability challenges because margins are tied to capacity, efficiency, and client mix. Here’s where the right planning approach makes a difference:
\n\n\n\nEach project has its own revenue, costs, and resources. Without project-level visibility, it’s impossible to know which work is actually profitable.
\n\n\n\nIt’s not enough to create a yearly budget. Monthly actuals vs. plan reporting helps you quickly see where projects are off track and adjust before problems snowball.
\n\n\n\nWhat happens if a big client leaves? Or if you add two more consultants next quarter? Scenario planning gives you the confidence to make tough decisions with numbers to back them up.
\n\n\n\nEmployee utilization is the heartbeat of a services firm. By linking financial forecasts to billable hours, staffing, and client demand, you can identify bottlenecks and prevent costly underutilization.
\n\n\n\nAt Modeliks, we’ve built a platform that turns these best practices into a structured, repeatable process.
\n\n\n\nWith Modeliks, you can:
\n\n\n\nMost firms wait until they have 100+ employees to rethink planning. But the truth is, dimensional planning and reporting matters at 20 employees, as much as at 200.
\n\n\n\nThe earlier you set up a scalable framework, the faster you can:
\n\n\n\nGrowing a professional services business isn’t just about winning more clients — it’s about building a system that lets you manage projects, measure performance, and grow profitably.
\n\n\n\nThat’s what this playbook is about — and why we built Modeliks.
\n\n\n\n👉 If you want to see how Modeliks can help you manage and grow your services firm, watch the full video walkthrough here.
\n\n\n\n📩 Or reach out to us directly to explore how Modeliks can be tailored for your firm.
\n\n\n\nEnjoy Modeliks! We know we are!
\n\n\n\nAuthor:
Modeliks Team