
95
Projecting Financial
Risk and Reward
Y
our fi nancial plan shows your readers the
current status and future forecasts of the
company’s fi nancial performance. As noted
in previous chapters, fi nancial projections need not
be exhaustive, but they must be addressed. The fi -
nancial picture you paint here represents your best
estimate of the risks involved and the return on in-
vestment, usually over a period of three to fi ve years.
Even if you have expert advice, crunching the num-
bers 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
fi nancial ...