When creating realistic projections, consider the following questions:
What is the current financial health of the business? Assess your balance sheet, income statement, and cash flow statement. What are the key drivers of revenue and expenses? Identify factors that significantly impact your revenue streams and costs. How is the market evolving? Analyze market trends, competitor actions, and customer behavior. What are the potential risks and uncertainties? Evaluate risks related to market conditions, regulatory changes, and other external factors. What are the growth opportunities? Identify areas for expansion, new markets, or product lines.