Innovator Founder Visa rejection & how to avoid them: Unreasonable Financial Projections

Unreasonable Financial Projections

One essential part of your business plan is to build a realistic and sound financial projection. It's crucial for endorsing bodies and the Home Office to glimpse into your envisioned financial landscape over the next 3-5 years. This includes a detailed breakdown of expected customers, revenue, costs, and overheads – all integral to understanding the financial viability of your venture.

A common pitfall leading to rejections is presenting overly optimistic financial growth without a solid basis. Claiming a 20-fold increase in business value with no additional marketing expenditure, for example, might raise more than a few skeptical eyebrows.

Each figure within your financial projections should be underpinned by concrete data or logical reasoning.

How to Fix it?

• Conduct thorough industry research to grasp essential metrics like market size and customer acquisition costs.
• Be prepared to substantiate every number you present. How did you arrive at these figures?
• Strive for realism in your financial projections. Ambition is valuable, but feasibility is key.
• Ensure coherence between your financials and the broader narrative of your business plan.

Here's a reassuring thought: If the idea of crafting a financial model seems daunting because you've never done it before, you're not alone. It can indeed be a complex task. But here’s the good news – at Salmo, we've got a team of experts ready to dive into the industry research and craft a solid financial projection for you. Don't let stress get in the way of your vision. Book a consultation with us now, and let's make those numbers work for you.