Financial Projections

The business plan must project financial data five years into the future. Although investors expect that the projections will turn out in practice to have been optimistic, the investors also expect the data to be logical, well researched, and carefully assembled: Financial projections should include the following:

The income statement
The cash-flow forecast
The balance sheet
The break-even analysis (TTXXX)

The financial data must also conform in presentation and in scope of sales and expenses with those of other companies in the same industry and with generally accepted accounting formats.