About Prompt
- Prompt Type – Dynamic
- Prompt Platform – ChatGPT, Grok, Deepseek, Gemini, Copilot, Midjourney, Meta AI and more
- Niche – Specific AI Use Case
- Language – English
- Category – Financial Planning & Reporting
- Prompt Title – AI-powered Financial Forecasting Prompt for Small Businesses
Prompt Details
This prompt is designed for dynamic financial forecasting tailored to small businesses, applicable across various AI platforms. It focuses on generating detailed financial plans and reports, considering diverse business specifics and external factors.
**Prompt Structure:**
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## Financial Forecasting for [Business Name]
**1. Business Profile:**
* **Industry:** [Specify Industry, e.g., Restaurant, Retail, Software Development]
* **Business Model:** [Briefly describe how the business operates, e.g., B2C e-commerce, Subscription-based SaaS, Brick-and-mortar retail]
* **Operating History:** [Number of years in operation]
* **Current Financial Status:**
* **Revenue (Last Fiscal Year):** [Dollar Amount]
* **Profit/Loss (Last Fiscal Year):** [Dollar Amount]
* **Debt Level:** [Dollar Amount or Debt-to-Equity Ratio]
* **Cash Reserves:** [Dollar Amount]
**2. Forecasting Parameters:**
* **Forecasting Period:** [Specify the time frame, e.g., Next 12 months, Next 3 years, Next 5 years]
* **Forecasting Frequency:** [Specify the frequency, e.g., Monthly, Quarterly, Annually]
* **Currency:** [Specify the currency, e.g., USD, EUR, GBP]
**3. Key Assumptions and Drivers:**
* **Revenue Growth Assumptions:** [Specify expected growth rates, considering factors like market trends, marketing campaigns, seasonality. Provide specific percentage values or ranges, e.g., “Expected revenue growth of 15% in the first year, 10% in the second year, and 5% in the third year.” Justify the assumptions. e.g., “Based on market research indicating increasing demand for [product/service] and planned expansion into new markets.”]
* **Cost Assumptions:** [Specify expected changes in costs, including fixed costs (rent, salaries) and variable costs (materials, marketing). Provide specific percentage values or ranges and justifications, e.g., “Expected increase in raw material costs by 5% due to supplier price increases.”]
* **External Factors:** [Describe relevant external factors, e.g., Economic outlook, inflation rates, interest rates, regulatory changes, competitor activity. Specify how these factors might impact the business. e.g., “Rising inflation rates might impact profit margins by 2%.”]
* **Key Performance Indicators (KPIs):** [Specify KPIs to track, e.g., Revenue growth, profit margins, customer acquisition cost, customer lifetime value]
**4. Desired Output:**
* **Pro Forma Financial Statements:**
* **Income Statement (P&L):** Projecting revenue, cost of goods sold (COGS), gross profit, operating expenses, and net income.
* **Balance Sheet:** Projecting assets, liabilities, and equity.
* **Cash Flow Statement:** Projecting cash inflows and outflows from operating, investing, and financing activities.
* **Key Metrics and Analysis:**
* **Profitability Analysis:** Gross profit margin, operating profit margin, net profit margin.
* **Liquidity Analysis:** Current ratio, quick ratio.
* **Solvency Analysis:** Debt-to-equity ratio.
* **Sensitivity Analysis:** Showing the impact of changes in key assumptions on the forecast.
* **Visualizations:** Charts and graphs showcasing key financial trends.
* **Narrative Summary:** A concise summary of the forecast, highlighting key findings, risks, and opportunities.
**Example Scenario:**
Imagine a small bakery, “Sweet Delights,” operating for 3 years, seeking a 3-year financial forecast. They experienced 10% revenue growth last year and project 12%, 10%, and 8% growth for the next three years, respectively, due to anticipated increased demand and marketing efforts. They also expect a 5% increase in ingredient costs due to inflation.
Adapt this prompt template by replacing the bracketed placeholders with the specific details of the small business. The more detailed and precise the input, the more accurate and valuable the AI-generated forecast will be. Remember to update assumptions regularly and re-run the forecast as new information becomes available.
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**Best Practices:**
* **Be Specific:** Provide precise values and avoid vague language.
* **Justify Assumptions:** Explain the rationale behind your assumptions to enhance the credibility of the forecast.
* **Iterate and Refine:** Test the prompt with different parameters and refine it based on the AI’s output.
* **Consider Scenario Planning:** Ask the AI to generate forecasts under different scenarios (e.g., best-case, worst-case, base-case) to assess potential risks and opportunities.
* **Combine with Human Expertise:** Use the AI-generated forecast as a starting point and refine it with human judgment and expertise.
This dynamic prompt allows for flexible and comprehensive financial forecasting, empowering small businesses to make informed decisions, manage resources effectively, and achieve sustainable growth.