Financial Assumptions in Financial Planning

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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