In celebration of Small Business Month 2026

May is Small Business Month, but for most entrepreneurs, every day in business is an important one! One of the most useful things a small business owner can do this month, almost halfway through 2026, is to sit down with the numbers and think strategically and realistically about where the business is going. 

Financial projections are the tool for that, and you don’t need a finance background or expensive software to get started. All you need are accurate records, your business plan, and a willingness to think through the future in concrete terms. Here are a handful of useful tips: 

The Three Documents You Need

Financial projections are structured estimates of what the business will earn and spend over a defined future period. They draw on three documents: a sales forecast that estimates future revenue based on historical patterns, an expense forecast that maps fixed and variable costs going forward, and a cash flow projection that tracks when money will actually arrive and leave. For business owners who maintain a dedicated small business checking account with a clean transaction history, building these projections is significantly easier. Your account records are the primary data source, and well-organized finances produce more accurate forecasts.

Building Your Projections From Scratch 

Start with what you already know. Pull the last 12 months of revenue data and look for patterns: which months are stronger, which are slower, and what drives the variation. Identify fixed costs: rent, insurance, loan payments, and permanent payroll. Then, layer in variable costs that move with revenue: inventory, contract labor, transaction fees. The gap between projected revenue and total costs, plotted month by month, is your projected cash flow. 

The 6-Month View: Operational Clarity

The six-month projection is the window where you have the most reliable data and the most direct control. Use it to anticipate cash flow gaps before they arrive, plan for upcoming expenses, and make staffing or inventory decisions with a clearer picture of what revenue will support. If a slow period typically arrives in months three and four, a six-month projection makes that visible in advance, when there’s still time to build reserves or adjust expenses before the pressure is on.

The 12-Month View: Growth and Financing

A 12-month projection shifts the lens toward growth. At this point, you’re thinking about hiring, equipment investments, and whether the business’s trajectory supports your goals for the year. It’s also the window most relevant to financing — lenders like us, reviewing a small business loan application, want to see that the business has thought carefully about its financial future, not just that it has performed well in the past. A well-constructed 12-month projection, grounded in real historical data, considerably strengthens your application.

The Three-Year View: Direction Over Precision

A three-year projection will likely be less precise, but it’ll give you the direction you need. You’re making assumptions about market growth, demand, pricing, and capital needs that can’t be predicted with total accuracy.  

Three-year projections are most useful when considering significant investment decisions, like a new location, a major equipment purchase, or a key hire. You should also account for debt: if the business plans to take on financing in year two, the repayment obligation needs to be reflected in the year-three cash flow picture.

How Your Banking Relationship Fits In

At Spring Bank, our offerings, including our small business checking accounts, are built to support local small business customers at every stage of their financial development, including planning. 

For business owners in the Bronx, Brooklyn, and across New York City, having a relationship with a community banker who understands the local market and can connect with your lived experiences goes a long way. Here, you’re more than an account number. We truly value your small business journey and want to see you succeed. This alone sets us apart from traditional banks, which often use automated algorithms in their lending process, rejecting you before you even get a chance to introduce yourself. 

Don’t Be Afraid of Being Wrong

A projection that diverges from actual results provides valuable data for the future. When revenue comes in below forecast, the question is why: was the sales assumption off, did timing shift, or did an unexpected cost arise? 

Ultimately, tracking differences between projected and actual figures month by month builds a progressively more accurate model of how the business operates. Business owners who regularly revisit their projections also develop a financial intuition that benefits them when making decisions in the long run. 

Resources 

The SBA’s business planning guide covers the core components of financial forecasting and includes templates for income statements, cash flow statements, and balance sheets. The SBA’s network of Small Business Development Centers and SCORE mentors provides free one-on-one advising, including support with projections, which is particularly useful for business owners building their first serious forecast. NYC Small Business Services (SBS) also offers borough-based advising through its Business Solution Centers.

This Small Business Month, take the next step and connect with us. Whether online or in-person, we’re excited to meet you and learn more about your goals.