The purpose of financial projections is to provide an estimate of future financial performance for a business. Financial projections can help entrepreneurs make informed decisions about their business by providing them with an idea of the financial outcomes of various strategies.
Entrepreneurs use financial projections to assess the financial viability of their business, develop a budget and make informed decisions about their business operations. Financial projections can be used to evaluate the potential return on investment, calculate the cost of capital, analyze cash flow and set pricing strategies.