Your business plan’s financial projections should be based on your business model and your market research. The goal is to make as realistic and achievable projections as possible.
To create a good financial projection, you need to understand your revenue model and your target market. Once you have this information, you can develop assumptions around revenue growth, cost of goods sold, margins, expenses, and other key metrics.
Once you have your assumptions set, you can plug them into a financial model to generate your projections.
Learn more about how to make the proper financial projections for your business plan.