A business plan helps in projecting future revenues and profits by providing a structured approach to outline and track financial details of your business. It allows you to make critical assumptions about sales, costs, and other financial parameters, which are then used to project revenues and profits. The plan also includes various tools to visualize your profits, capital expenditures, employee salaries, and company expenses. For subscriptions, it tracks the lifetime value, cost of acquisition, and lifetime period of your subscribers. For products, it allows you to take into account returns, marketplace fees, and other typical product-related expenses.
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