What if you could test your next big business decision before you made it?
Financial projections let you do exactly that.
For construction business owners, projections aren’t just about budgeting. They give you the visibility and clarity to make smarter decisions—whether you’re planning to hire, buy equipment, bid a new job, or set a bonus plan.
In this post, we’ll show you how projections work, why they matter, and how you can use them to make strategic, confident decisions in your company.
What Are Financial Projections?
Financial projections use current and historical data to model how your company is likely to perform in the future.
In construction, a good projection model includes:
- Current backlog
- Cost-to-complete data
- Overhead budget
- Revenue targets
- WIP reporting
At Atlas CFO, we use this data to forecast revenue, gross profit, overhead, and net income—and we project both the Income Statement and Balance Sheet up to 36 months in the future.
The goal? Clarity and control.
Smarter Business Moves You Can Make with Projections
1. Hiring Decisions
Can we afford a new PM or estimator?
How much revenue would we need to break even?
With a projection model, you can:
- Add a salary line item
- See how it affects profitability
- Run scenarios with and without new work
This lets you make the call with confidence—not just hope.
2. Equipment Purchases
Should we buy or lease? Pay cash or finance?
Will this stretch our cash too thin?
With financial projections, you can:
- Layer in the cost of a new asset or loan
- Watch how cash flow and debt ratios change
- See if you’ll still meet your bonding requirements
No more guessing—just better decision-making.
3. Job Selection and Capacity Planning
Can we take on that larger job next quarter?
Will it push our backlog beyond our capacity?
With real-time backlog and revenue forecasts, projections show:
- When you’re underbooked or overbooked
- If the timing of jobs creates a cash gap
- When to say yes—or no—to a project
4. Bonus Planning and Profit Sharing
Want to reward your team but unsure how much profit will be left?
Projections can help you:
- Plan for bonuses in advance
- Ensure they’re tied to actual performance
- Avoid surprise shortfalls at year-end
5. Strategic Growth or Succession Planning
Thinking long-term? Financial projections help you:
- Set realistic growth targets
- Prepare for a future transition
- Show financial health to investors, banks, or bonding agents
You don’t need a crystal ball—you need a clear path forward.
Projections Are Only as Good as Your Inputs
Here’s what you need to build projections that work:
- Accurate Balance Sheet
- Updated Income Statement
- Reliable Work-in-Progress report
- Overhead budget and current backlog
When those pieces are solid, projections become one of the most powerful tools in your financial toolbox.
How Atlas CFO Helps
We created the Atlas Growth Model™, a projection tool built for construction companies.
It includes:
- Monthly or quarterly updates
- 3-year forecast of Income Statement and Balance Sheet
- 30+ built-in KPIs and industry benchmark comparisons
- Scenario testing for jobs, hiring, and overhead changes
- Done-for-you or DIY options (based on your level of support)
It’s the same tool we use in our vCFO services—and it’s helped contractors across the country make faster, better, more profitable decisions.
Final Thought
You wouldn’t build a project without a budget and schedule.
So why run your business without a forecast?
Financial projections give you a lens into what’s coming next—so you can act with intention, not reaction.
Whether you’re trying to grow, stabilize, or plan for the future, the ability to see ahead might be the best strategic move you can make.