Creating a financial forecast involves several steps:
1. Gather Historical Data: Analyze past financial performance to identify trends. 2. Market Research: Understand the market conditions, including competitors and economic factors. 3. Assumptions: Make educated assumptions based on historical data and market research. 4. Projection Models: Use financial models like income statements, balance sheets, and cash flow statements to project future performance. 5. Review and Adjust: Regularly update forecasts to reflect new data and changing conditions.