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Developing financial projections for a startup can be daunting, as it involves estimating revenues and costs for the first year and beyond. It's crucial to include these projections in your business plan to present to funders, despite the uncertainty involved. This video outlines six major components of financial projections for startups. First, identify your financial goals and objectives—clarifying how much money you need and aim to achieve. Second, consider income tax planning, which is essential and often overlooked by small business owners. It's important not to skip this step in your financial projections.