Financial projections in business plans are the most important and difficult to maintain, because of the uncertainty associated with them. Identify the risk factors while preparing the business plan so that contingency plans can be formulated to avert a crisis. The business investors want to quickly gain the return on the investment, without being deceived by the business plan.
It is not a good idea to be conservative with financial projections at the beginning of the business. Business investors invest money with the sole aim of gaining a suitable return on the investment. The length of time for which the investment is made also influences the amount of money gained. They don