How to create a financial forecast for a vinyl pressing company?

Developing and maintaining an up-to-date financial forecast for your vinyl pressing company is key in order to maintain visibility on your business’s future cash flows.
If you feel overwhelmed at the thought of putting together a vinyl pressing company financial forecast then don’t worry as this guide is here to help you.
We'll cover everything from: the main objectives of a financial forecast, the data you need to gather before starting, to the tables that compose it, and the tools that will help you create and maintain your forecast efficiently.
Let's get started!
Why create and maintain a financial forecast for a vinyl pressing company?
The financial projections for your vinyl pressing company act as a financial blueprint to guide its growth with confidence and ensure its long-term financial viability.
To create them, you will need to look at your business in detail - from sales to operating costs and investments - to assess how much profit it can generate in the years to come and what will be the associated cash flows.
During challenging market conditions, maintaining an up-to-date financial forecast enables early detection of potential financial shortfalls, allowing for timely adjustments or securing financing before facing a cash crisis.
Your vinyl pressing company's financial forecast will also prove invaluable when seeking financing. Banks and investors will undoubtedly request a thorough examination of your financial figures, making precision and presentation essential.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

What information is used as input to build a vinyl pressing company financial forecast?
A vinyl pressing company's financial forecast needs to be built on the right foundation: your assumptions.
The data required to create your assumptions will depend on whether you are a new or existing vinyl pressing company.
If you are creating (or updating) the forecast of an existing vinyl pressing company, then your main inputs will be historical accounting data and operating metrics, and your team’s view on what to expect for the next three to five years.
If you are building financial projections for a new vinyl pressing company startup, you will need to rely on market research to form your go-to-market strategy and derive your sales forecast.
For a new venture, you will also need an itemised list of resources needed for the vinyl pressing company to operate, along with a list of equipment required to launch the venture (more on that below).
Now that you understand what is needed, let’s have a look at what elements will make up your vinyl pressing company's financial forecast.
The sales forecast for a vinyl pressing company
From experience, it is usually best to start creating your vinyl pressing company financial forecast by your sales forecast.
To create an accurate sales forecast for your vinyl pressing company, you will have to rely on the data collected in your market research, or if you're running an existing vinyl pressing company, the historical data of the business, to estimate two key variables:
- The average price
- The number of monthly transactions
To get there, you will need to consider the following factors:
- Consumer Demand: The average price and number of monthly transactions for your vinyl pressing company can be affected by the overall demand for vinyl records in the market. Factors such as nostalgia, collector's interest, and the popularity of vinyl among audiophiles can all impact the sales of your company.
- Competition: The presence of other vinyl pressing companies in the market can also affect your average price and number of monthly transactions. If there is high competition, you may need to lower your prices to remain competitive, which can decrease your average price and potentially increase your number of transactions.
- Technology: Advancements in technology can also have an impact on your business's average price and number of monthly transactions. For example, if there are new and more efficient vinyl pressing machines available, you may be able to offer lower prices to your customers while maintaining a high quality, which can increase your number of transactions.
- Supply Chain: The availability and cost of raw materials, such as vinyl pellets and packaging materials, can also affect your average price and number of monthly transactions. If there is a shortage of these materials or an increase in their cost, you may need to raise your prices, which can decrease your number of transactions.
- Economic Factors: The state of the economy can also have an impact on your business. In times of economic downturn, consumers may be more hesitant to spend money on luxury items like vinyl records, which can decrease your average price and number of transactions. On the other hand, during times of economic growth, consumers may have more disposable income to spend on vinyl records, which can increase your average price and number of transactions.
Once you have an idea of what your future sales will look like, it will be time to work on your overhead budget. Let’s see what this entails.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The operating expenses for a vinyl pressing company
The next step is to estimate the costs you’ll have to incur to operate your vinyl pressing company.
These will vary based on where your business is located, and its overall size (level of sales, personnel, etc.).
But your vinyl pressing company's operating expenses should normally include the following items:
- You will need to budget for staff costs, including salaries, benefits, and payroll taxes for your employees who will be responsible for operating the vinyl pressing machines.
- Accountancy fees are an important expense to consider in order to ensure accurate financial records and tax compliance.
- Insurance costs should be factored in to cover the equipment, building, and liability for your vinyl pressing business.
- Software licenses are necessary for running the equipment and managing your business operations, such as production scheduling and inventory management.
- Banking fees, such as transaction fees and account maintenance fees, should be budgeted for when setting up your business accounts.
- Rent or lease costs for the manufacturing facility where you will operate the vinyl pressing machines should be included in your operating expenses.
- Utilities, such as electricity, water, and gas, will also need to be factored in to cover the energy costs of running the machines.
- Packaging and shipping materials, such as vinyl sleeves and boxes, will be needed to package and ship the finished products to customers.
- Raw materials, such as vinyl pellets and labels, are necessary for production and should be included in your expenses.
- Maintenance and repair costs for the vinyl pressing machines, as well as other equipment and tools, should be budgeted for in case of breakdowns or wear and tear.
- Marketing and advertising expenses, such as creating promotional materials and attending trade shows, are important for promoting your business and attracting new customers.
- Training and development costs for employees should be included in your expenses to ensure they have the necessary skills and knowledge to operate the machines and perform their duties effectively.
- Taxes, including income tax, sales tax, and property tax, should be factored in to ensure compliance and avoid penalties.
- Legal fees, such as for obtaining necessary permits and licenses, should be included in your expenses to ensure your business is operating legally.
- Office supplies, such as paper, ink, and toner, should be budgeted for to cover the costs of managing administrative tasks and keeping the office running smoothly.
This list is not exhaustive by any means, and will need to be tailored to your vinyl pressing company's specific circumstances.
What investments are needed to start or grow a vinyl pressing company?
Creating and expanding a vinyl pressing company also requires investments which you need to factor into your financial forecast.
Capital expenditures and initial working capital items for a vinyl pressing company could include elements such as:
- Vinyl pressing machines - This is the most essential capital expenditure for a vinyl pressing company as it is used to actually press the vinyl records. These machines can range in price depending on the size and quality, but they are a necessary investment for the business.
- Record cutting lathe - This is another important piece of equipment needed for a vinyl pressing company. The lathe is used to cut the grooves into the vinyl records, creating the sound that we hear when playing a record. It is a fixed asset that requires a significant investment.
- Packaging and labeling equipment - In order to properly package and label vinyl records, a company will need specialized equipment such as shrink wrap machines, label printers, and packaging materials. These are all fixed assets that are necessary for the production and distribution of vinyl records.
- Storage and warehouse space - A vinyl pressing company will need a dedicated space to store their raw materials, finished products, and equipment. This could include a warehouse or storage facility, as well as shelves, racks, and other storage solutions. These are all fixed assets that will require an initial investment.
- Transportation and delivery vehicles - Depending on the size of the business, a vinyl pressing company may need to invest in transportation and delivery vehicles to transport their products to retailers or customers. This could include vans, trucks, or even a delivery vehicle specifically designed for transporting vinyl records. These are all fixed assets that are necessary for the distribution of the company's products.
Again, this list is not exhaustive and will need to be adjusted according to the circumstances of your vinyl pressing company.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The financing plan of your vinyl pressing company
The next step in the creation of your financial forecast for your vinyl pressing company is to think about how you might finance your business.
You will have to assess how much capital will come from shareholders (equity) and how much can be secured through banks.
Bank loans will have to be modelled so that you can separate the interest expenses from the repayments of principal, and include all this data in your forecast.
Issuing share capital and obtaining a bank loan are two of the most common ways that entrepreneurs finance their businesses.
What tables compose the financial plan for a vinyl pressing company?
Now let's have a look at the main output tables of your vinyl pressing company's financial forecast.
The profit & loss forecast
The forecasted profit & loss statement will enable you to visualise your vinyl pressing company's expected growth and profitability over the next three to five years.

A financially viable P&L statement for a vinyl pressing company should normally show:
- Sales growing above inflation
- Stable or expanding (ideally) profit margins
- A net profit
This will of course depend on the stage of your business: a new venture might be loss-making until it reaches its breakeven point in year 2 or 3, for example.
The projected balance sheet
The projected balance sheet gives an overview of your vinyl pressing company's financial structure at the end of the financial year.
It is composed of three categories of items: assets, liabilities and equity:
- Assets: are what the business possesses and uses to produce cash flows. It includes resources such as cash, buildings, equipment, and accounts receivable (money owed by clients).
- Liabilities: are the debts of your vinyl pressing company. They include accounts payable (money owed to suppliers), taxes due and bank loans.
- Equity: is the combination of what has been invested by the business owners and the cumulative profits to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

The cash flow forecast
Your vinyl pressing company's cash flow forecast shows how much cash your business is expected to consume or generate in the years to come.

It is best practice to organise the cash flow forecast by nature to better explain where cash is used or generated by the vinyl pressing company:
- Operating cash flow: shows how much cash is generated by the operating activities
- Investing cash flow: shows how much will be invested in capital expenditure to maintain or expand the business
- Financing cash flow: shows if the business is raising new capital or repaying financiers (debt repayment, dividends)
Keeping an eye on (and regularly updating) your vinyl pressing company's cash flow forecast is key to ensuring that your business has sufficient liquidity to operate normally and to detect financing requirements as early as possible.
If you are trying to raise capital, you will normally be asked to provide a monthly cash flow forecast in your vinyl pressing company's financial plan - so that banks or investors can assess seasonal variation and ensure your business is appropriately capitalised.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Which tool should you use to create your vinyl pressing company's financial forecast?
Creating your vinyl pressing company's financial forecast may sound fairly daunting, but the good news is that there are several ways to go about it.
Using online financial forecasting software to build your vinyl pressing company's projections
The modern and easiest way is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.
There are several advantages to using specialised software:
- You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
- You have access to complete financial forecast templates
- You get a complete financial forecast ready to be sent to your bank or investors
- You can easily track your actual financial performance against your financial forecast, and recalibrate your forecast as the year goes by
- You can create scenarios to stress test your forecast's main assumptions
- You can easily update your forecast as time goes by to maintain visibility on future cash flows
- You have a friendly support team on standby to assist you when you are stuck
- It’s cost-efficient and much cheaper than using an accountant or consultant (see below)
If you are interested in this type of solution, you can try our forecasting software for free by signing up here.
Calling in a financial consultant or chartered accountant
Enlisting the help of a consultant or accountant is also a good way to obtain a professional vinyl pressing company financial forecast.
The downside of this solution is its cost. From experience, obtaining a simple financial forecast over three years (including a balance sheet, income statement, and cash flow statement) is likely to cost a minimum of £700 or $1,000.
The indicative cost above, is for a small business, and a forecast is done as a one-shot exercise. Using a consultant or accountant to track your actuals vs. forecast and to keep your financial projections up to date on a monthly or quarterly basis will cost a lot more.
If you opt for this solution, make sure your accountant has in-depth knowledge of your industry, so that they may challenge your figures and offer insights (as opposed to just taking your assumptions at face value to create the forecast).
Why not use a spreadsheet such as Excel or Google Sheets to build your vinyl pressing company's financial forecast?
Creating an accurate and error-free vinyl pressing company financial forecast with a spreadsheet is very technical and requires a deep knowledge of accounting and an understanding of financial modelling.
Very few business owners are financially savvy enough to be able to build a forecast themselves on Excel without making mistakes.
Lenders and investors know this, which is why forecasts created on Excel by the business owner are often frowned upon.
Having numbers one can trust is key when it comes to financial forecasting and to that end using software is much safer.
Using financial forecasting software is also faster than using a spreadsheet, and, with the rise of artificial intelligence, software is also becoming smarter at helping us analyse the numbers to make smarter decisions.
Finally, like everything with spreadsheets, tracking actuals vs. forecasts and keeping your projections up to date as the year progresses is manual, tedious, and error-prone. Whereas financial projection software like The Business Plan Shop is built for this.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Use our financial forecast templates for inspiration
The Business Plan Shop has dozens of financial forecast examples available.
Our templates contain both a financial forecast and a written business plan which presents, in detail, the company, the team, the strategy, and the medium-term objectives.
Our templates are a great source of inspiration, whether you just want to see what a complete business plan looks like, or are looking for concrete examples of how you should model financial elements in your own forecast.

Takeaways
- Having a financial forecast enables you to visualise the expected growth, profitability, and cash generation for your business over the next three to five years.
- Tracking actuals vs. forecast and keeping your financial projections up-to-date is the only way to get a view on what your vinyl pressing company future cash flows may look like.
- Using financial forecasting software is the mordern and easy way to create and maintain your forecasts.
This is the end of our guide on how to build the financial forecast for a vinyl pressing company, we hope you found it useful. Don't hesitate to contact us if you want to share your feedback or have any questions.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Also on The Business Plan Shop
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- Sample financial forecast for business idea
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