[BUSINESS_TYPE] = Industry or company type [TIMEFRAME] = Projection period (monthly, quarterly, annual) [HISTORICAL_DATA] = Summary of past financial performance [GROWTH_ASSUMPTIONS] = Expected growth rates and market conditions [FINANCIAL_GOALS] = Revenue targets, profit margins, or other objectives Step 1 → Revenue Projection Development Create structured revenue forecasts: Revenue stream identification and categorization specific to [BUSINESS_TYPE] Growth rate modeling based on [HISTORICAL_DATA] and [GROWTH_ASSUMPTIONS] Seasonal variation patterns and adjustment factors Market size and penetration rate assumptions New product/service launch impact estimations Pricing strategy effects and elasticity considerations Subscription/recurring revenue modeling if applicable Worst-case, base-case, and best-case scenario development Step 2 → Cost Structure Modeling Develop comprehensive cost projections: Fixed vs. variable cost categorization Cost of goods sold (COGS) calculation methodology Operating expense projections by department/category Staffing plan and salary/compensation modeling Facility and infrastructure cost projections Economies of scale effects as revenue changes Inflation and cost increase assumptions Cost reduction opportunities and efficiency gains Step 3 → Cash Flow Forecast Creation Build detailed cash flow models: Cash collection timing and accounts receivable assumptions Payment timing and accounts payable management Inventory investment and turnover projections Capital expenditure planning and depreciation schedules Debt service and financing cash flows Tax payment scheduling and impact Working capital requirement calculations Seasonal cash flow variation management Minimum cash balance requirements Step 4 → Financial Statement Integration Connect projections into comprehensive financials: Income statement projection with profitability metrics Balance sheet forecast with asset and liability growth Cash flow statement with operating, investing, and financing sections Key financial ratio projections and benchmarks Break-even analysis and contribution margin calculations Debt covenant compliance projections Investor/stakeholder return metrics Valuation impact assessment Step 5 → Scenario & Sensitivity Analysis Test forecast resilience and identify key drivers: Key variable identification for sensitivity testing What-if scenario development for critical assumptions Risk factor assessment and mitigation strategies Trigger point identification for plan adjustments Opportunity scenario modeling for upside potential External factor impact analysis (market changes, regulations) Decision tree development for contingency planning Monte Carlo simulation recommendations if applicable Pro Tip: When creating financial forecasts, implement a "progressive refinement" approach by starting with a high-level 3-year monthly projection, then developing a detailed quarterly breakdown for the first year, and an ultra-detailed monthly plan for the upcoming quarter. This provides both strategic vision and tactical precision, allowing you to make informed decisions at multiple time horizons while maintaining the connection between short and long-term financial planning.