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Developing financial projections for a business can be challenging, especially when estimating revenue and costs for the first year and beyond. Presenting these projections in a business plan can feel like a commitment to funders despite the uncertainty involved. This video offers 10 tips to create effective financial projections. The first tip discusses pricing, emphasizing that it is essential for determining competitiveness and profitability. Setting prices too high can deter customers, while prices set too low can harm the business's profitability. It is crucial to analyze the profitability of different products and services to ensure the gross margins can cover financial obligations and support growth.