Financial projections are essential for understanding the potential profitability of your business. Here’s how you can develop them:
1. Revenue Projections: Estimate your sales and revenue over a specific period. 2. Expense Estimates: Calculate your operating expenses, including fixed and variable costs. 3. Profit and Loss Statements: Create statements that project your expected profits and losses. 4. Cash Flow Projections: Estimate the inflow and outflow of cash to ensure you have sufficient liquidity.