Projecting Financial Risk and Reward
Your financial plan shows your readers the current status and future forecasts of the company’s financial performance. As noted in previous chapters, financial projections need not be exhaustive, but they must be addressed. The financial picture you paint here represents your best estimate of the risks involved and the return on investment, usually over a period of three to five years. Even if you have expert advice, crunching the numbers yourself is a worthwhile exercise. The gritty work of building an income statement and balance sheet will help you determine whether you will achieve your financial objectives.
Preparing your financial plan
Below are some key components of the financial plan:
• Capital requirements: ...