Projecting your financial future
By putting all your revenue and expense assumptions together and projecting them out over three years, you can see in black and white how successful your business can be. Projecting also allows you to grow the business without running out of cash. Growth in sales always incurs additional cash requirements to generate and support the additional revenues. When used properly, financial projections can help you determine what additional assets you need to support your increased sales and what impact those assets and sales have on your balance sheet. In other words, the financial projections indicate how much additional debt or equity you need to stay afloat.
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