Business Plan Part 2 - Financial Projections

The data used for the financial projections mandates existing or estimated financial information while forecasting future earnings and expenses of the business. The benefit applies to generating various scenarios to consider changes, impacts, sales, and operating costs that measure profitability. The information provides the essential foundation for seeking new funding or capital infusion.

In retrospect to planning, projections often include analyzing the impact collectively with various business strategies and assessing the business plan to remain realistic. Other than reviewing the possibilities of shortfalls, or essential financial requirements, the financials become the foundation for funding. The projections enable a critical view of trends and expectations, delivering an economic picture that manages beliefs and predictions of a fruitful future.