What good is a plan without projections? For businesses, there is often a financial goal or outcome representing successful execution of the plan. Projections are a roadmap.
This may seem obvious, but there is a positive ripple effect in attaching detailed projections to a plan.
Projections bring credibility to the plan and the team. Knowing how the pieces fit together and communicating the financial roadmap shows you know what you’re talking about. This is pretty important if there is a capital/investment ask attached to your plan.
They also give you something to track against, and that baseline is critical for iterations and tweaks with the team. Why is it different? Who’s accountable? What do we do about it? Should our original thesis be changed?
Projections may become obsolete once they are published, but they still have ongoing value and are worth the effort. Don’t plan without them!
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