What is a Business Projection?

Apr 03, 2019 by Roger Scherping

Some of you are wondering: What exactly is a business projection?

A business projection is simply a financial plan for your business, usually for the next 12-24 months.

For a startup, a business projection will tell you if your business concept makes financial sense. It will tell you whether you can expect to make profit with your concept and how much cash you will need to make it a reality.

For an existing business, a business projection will tell you where you’re going to be in the next year. It will help you answer questions like: Will I have enough cash? Can I afford to buy that new machine or hire that new employee? Will I need a bank loan?

Remember, lack of planning is often the reason given for the failure of small businesses. A business projection will help in so many ways. It will help you overcome your fear of your numbers. It will let you know if you're going to run out of cash. Basically, it will help you get control of your business.

Alan Lakein once said, “Planning is bringing the future into the present so that you can do something about it now.”

So, take control of your business! At ProjectionSmart, we can help.

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