The figures from your book of financial forms are based on the following assumptions form you need to fill out $($use the attached document below to help if you wish$)$:

Need to start planning for:

You should also start working on your Balance Sheet$($s$)$ and Cash$-$flow statement NOW but they are required only in your final plan! $($attached document$)$: sample business plan template fin sec$.$doc DO NOT USE THIS FOR THIS ASSIGNMENT!

Create a List of Assumptions

Your financial projections should be tied to a list of assumptions. For example, one assumption will be the initial monthly cash sales you achieve. Another assumption will be your monthly growth rate. As you can imagine, changing either of these assumptions will significantly impact your financial projections.

As a result, tie your income statement, balance sheet, and cash flow statements to your assumptions. That way, if you change your assumptions, all of your financial projections automatically update.

Below are the key assumptions to include in your financial model:

For EACH essential product or service you offer:

What is the number of units you expect to sell each month?

What is your expected monthly sales growth rate?

What is the average price that you will charge per product or service unit sold?

How much do you expect to raise your prices each year?

How much does it cost you to produce or deliver each unit sold?

How much $($if at all$)$ do you expect your direct product costs to grow each year?

So$,$ for your business, you are writing your plan for you will document your products and list them while projecting the units you plan to sell and the growth you would expect to have each year and total them.

Growth rates are computed by dividing the difference between the ending and starting values for the period being analyzed and dividing that by the starting value. Periods used for growth rates are most often annually, quarterly, monthly, and weekly.

To calculate the CAGR of an investment:

Divide the value of an investment at the end of the period by its value at the beginning of that period.

Raise the result to an exponent of one divided by the number of years.

Subtract one from the subsequent result.

Multiply by $100$ to convert the answer into a percentage.