Assumptions: The building blocks of your financial projections
Your financial projections are well-educated guesses. They can be based on past financial data of the firm or data you have collected from your market research, you can create some well-reasoned guesstimates on certain financial data, such as:
- Sources of revenue
- Sales projections
- Basis of all variable costs (such as manufacturing costs)
- Basis of all fixed costs (such as personnel salaries)
- Investment requirements (start-up costs and working capital)
- Sources of investment
- Fixed, one-time start-up costs
- Costs of office space and related services (such as telephones)
- Costs of professional services (such as legal, accounting, etc.)
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