Explain the risks associated with projected sales. Speculate profitability: Speculate on the profitability of your proposed product or service.
Determine if the project is profitable. Note: In this pitch for funding, senior management has to know that the project, based on market research, is speculated to be profitable.
Use the company’s current income statement to project how the company’s profitability will be affected.
Look to other companies in the marketplace with products or services similar to the one you are proposing as a basis for your projections. Note: these numbers are purely speculative.
Determine the impact on the functional areas of the business (accounting, marketing, sales, and so on).