Startups create financial projections in the form of a "Pro Forma Income Statement" — which simply means a financial forecast. Early-stage startups are still building their financial models with assumptions, forecasting everything from sales revenue to marketing costs to a basic cash flow projection.

We're going to explain exactly how to build financial projections for your startup even if you have no idea where to start!

Financial Projections are just Assumptions

Most businesses that have been around a while have historical financial statements that detail how operating expenses, direct costs, fixed costs, and their sales forecast have worked all along — startups have none of this.

Therefore instead of working from real-world data to build our...