Financial Forecasts

While startups don’t have a crystal ball to determine their financial future, they can estimate performance with financial forecasts, which  use historical monetary data to predict cash trends. 

Financial forecasts help identify risks related to runway, cash flow, expenses, and sales. 

There are several methods used to create financial forecasts. Some of the more popular are percent of sales, the straight line method, moving averages, multiple linear regression, and the Delphi method.

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