5 Rules of Thumb for Startup Financial Projections Marty Zwilling

Quote: « Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. However, making no projections, or non-credible projections will get your startup marked as unfundable. I recommend a simple set of guidelines, which work for at least 80 percent of the business plans I see

The rules are obviously not absolute, but you must be prepared to explain to potential investors why your startup is the exception to these guidelines:

• Five-year financial projections are the norm
• Aggressive revenue projections and growth rate.
• Gross margins greater than 50 percent.
• Show red ink to match your funding request.
• Build a path to 10x return »

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