Every financial plan must begin with a sales forecast. The sales forecast predicts how much of a product or service will be sold within the market over a specific period of time. This has to be as accurate as possible in order to ensure the rest of your projections are realistic as well.

Stay on top of industry trends and connect with the appropriate associations in order to closely forecast your sales. The Canadian Association Handbook is a great place to start. Also consult the data found on the Statistics Canada website for your specific NAICS/SIC code.

Once you've established what your sales will look like for the first twelve months, calculate your sales by year for the 2-5 years that follow.

You must also prepare an income statement, a balance sheet, and a statement of cash flow for the same amount of time. For more information, consult GoForth Institute's Tools for Entrepreneurs section which includes sample spreadsheets for completing a proper financial plan.