what is financial projections in business plan

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    Use our sample Coopers Cup Coffee Shop Business Plan created using Upmetrics business plan software to start writing your business plan in no time. You should include cash flow projections for each month over one year in the financial section of your business plan. It can provide insight into your business and show important measures like how much cash you have, what your obligations are and what kind of profit youre making all at a glance. I am VERY pleased with this product and it has helped me complete my business plan. Staying updated with what your competitors are doing is essential. Dave Lavinsky is right: most of them dont address what we need to see and totally miss the point. Whether youre modifying your plan or starting from scratch, a financial plan should include: Income statement: This shows how your business experienced profit or loss over a specific periodusually over three months. Heres our promise: Purchase today 100% risk-free because Growthinks Ultimate Business Plan Template comes with a full 365 Day 100% Money Back Guarantee. As any good business plan template will point out, your company analysis should also give a snapshot of the companys achievements to date, since the best indicator of future success are past accomplishments. If you are planning to start a new coffee shop business, the first thing you will need is a business plan. This is the standard coffee shop business plan outline which will cover all important sections that you should include in your business plan. We are dedicated to getting people and goods where they need to go, be it by air, land, rail or sea, and to deliver the world class, 21st century infrastructure that our region needs to keep thriving. Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.. Growthink's Ultimate Business Plan Template. To figure it out, youll need to consider the following: Shareholder equity (the amount of money generated by your business): Use this formula to calculate it: Now that you have these three items, youre ready to create your balance sheet. This should prove helpful as you create future plans for your companys growth. This program includes 15 expert interviews (both audio recordings and transcripts) we conducted with top investors, lenders and entrepreneurs who have raised funding. While there are many ways to go about developing a plando it yourself, use a robo-advisor, work with a financial planner, or a combination thereofSchwab has identified the eight critical components every plan should include, regardless of the method used to create it. Using a financial projections template in Excel simply saves significant time and provides the benefit of using already existing industry and financial modeling know-how. A financial plan is simply an overview of your current business financials and projections for growth. Health in 2020: A Guide, Omnichannel Financial projections are an important business planning tool for several reasons. Knowing your target audience and what they want. DISCLAIMER: The business plans, templates, and articles contained on upmetrics.co are not to be considered as legal advice. This section takes you through our proven and proprietary process for creating an Operations Plan that will transform your ideas into reality. Our formula works wonders our clients have raised over $2.5 BILLION! Photo: Jetta Productions Inc/Getty Images, Download the Sample Cash Flow Projection Template, Download the Sample Balance Sheet Template, How To Prepare Your Business' Financial Statements, Documents Needed To Prepare a Statement of Cash Flows, How Financial Statements Work Together for Your Business, How To Write the Funding Request for Your Business Plan, How To Prepare a Balance Sheet for a Small Business, How To Write the Operations Plan Section of the Business Plan, What Investors Want To See in Financial Statements, Simple Business Plan Template for Entrepreneurs, How To Create Financial Projections for Your Business, Writing a Business PlanFinancial Projections. But with your Template, within a few hours my business plan was done. Think of any documents that represent your current monetary situation as a snapshot of the health of your business and the projections being your future expectations. Info. | A Product by Codesket Pvt Ltd. We use our own and third-party cookies to show you more relevant content based on your browsing and navigation history. You can download our resources to learn all about business planning. Not found what you are looking for? You have an entire year to request a refund if desired. This section evaluates the playing field in which the company will be competing, and includes well-structured answers to key market research questions such as the following: To conduct this market research, do research online and leverage trade associations that often have the information you need. devising strategies, strategic plans, writing a business plan, making projections, forecasting cash flow and more. The cash flow projection shows the cash that is anticipated to be generated or expended over a chosen period in the future. The business plan must answer questions including: The financial plan involves the development of the companys revenue and profitability model. A business plan should explain what your business does now and where you hope to be in three to five years. A financial plan is simply an overview of your current business financials and projections for growth. Its the fastest and easiest way to start writing your business plan. The next post in this series is the final section, and deals with the planned exit for investors. And now the business is really starting to grow. Brainyard delivers data-driven insights and expert advice to help If you have a product-based business, the revenue section of the income statement will look different. Its a crucial business plan section. You can create an unlimited number of business plans with Growthinks Ultimate Business Plan Template. This business plan section provides a strategic overview of the business and describes how the company is organized, what products and services it offers/will offer, and goes into further detail on the business unique qualifications in serving its target markets. Worth every penny!, Maria MirandaOwner / Maria Miranda Bridal Studio. Bachelor's degree: $94,170: Securities, Commodities, and Financial Services Sales Agents: Securities, commodities, and financial services sales agents connect buyers and sellers in financial markets. Revenue will be called sales, and you should account for anyinventory. & Hospitality, Software There are three parts to the cash flow projection: The balance sheet reports your business'snet worth at a particular pointin time. Duties. Its also an important tool when asking investors to consider your business. Obviously, the result is in whether or not youre able to raise money, Were delighted because we were able to raise money, and were off to the races!. Your template is very flexible and seems as if it can be used for about any type of business there is., Dr. Dwight LysneWilmington, North Carolina, This is amazing, thank you so much. & Reporting, Customer By looking at growth and costs you can see if the potential benefits that come with a new employee justify the expense. (In fact, most potential investors will expect you to have a business plan ready.) From working with all these businesses, we know there are 10 elements in any great business plan. My investors and mentors have commented that my business plan is the most complete and informative plan theyve ever seen. Get trusted advice on investing, retirement, taxes, saving, real estate, cars, college, insurance. Growthink's Ultimate Business Plan Template allows you to quickly and easily create a professional business plan for your business. A business plan should explain what your business does now and where you hope to be in three to five years. For yourbusiness plan, you shouldcreate a pro forma balance sheet that summarizes the information in the income statement and cash flow projections. Your Business Planning Template has been the single most valuable tool for helping me think more critically and strategically about bringing my invention to market. Anyone can easily follow our basic instructions and create a great business plan quickly and easily. What other resources will you need? Growthink's Ultimate Business Plan Template allows you to quickly and easily create a professional business plan for your business. It describes a businesss historical financial state (if applicable) and future financial projections. Indirect competitors are those who provide similar products or services. Sixteen versions/editions. Leader in personal finance news and business forecasting. Using business budgeting worksheets for this purpose can help you: Set and achieve profit goals; Track revenue, expenses, and cash flow; Cut unnecessary spending The appendix is used to support the rest of the business plan. I researched so many business plan templates and yours is so amazing and easy to follow., I didnt feel I knew enough to write a business plan But this is a very good and thorough template.. I was so impressed with how efficiently the template helped me complete my plan- specifically the financial projections which for a lot of business plan authors are the most intimidating part. for a Small Business, Small Business Financial What about non-profits? The first five components of your business plan provide an overview of the business opportunity and market research to support it. And one of the most Before starting any business, knowing about the latest industry trends is important. I knew I had to write my business plan in order to start my business. With what other industries do your services compete? It was just what I needed to get my new business started in the right direction. I wanted to thank you for the business advice around creating a compelling business plan. Yes. Your Financial Business Modelling put in the Excel format is an excellent way to make entrepreneurs understand the basic concept of finances. and the expected future earnings. Great work, and keep delivering high-value products to entrepreneurs in need., Hugh YoungbloodDirector / Youngblood Capital Group. You can access FSA content via the National Web Archives fsa.gov.uk site. I was awarded two government contracts as a direct result of your template. For example, if you own a hotel and giftshop, you may want to track separately sales from guests staying the night and sales from the shop. I was delighted that I could pick up your template with all the key components just drop in my idea and put it together in a way that hits all the key points and makes an impact with the investment community. While you should be optimistic about your business, if your financial projections reflect your hopes more than reality, people may hesitate to back your business. Whether you are already running a business, or making plans to start one up, financial planning is a vital part of ensuring your success. Relationship Management, Sales There are no recurring or monthly fees for our template, just a one-time fee. While you should be optimistic about your business, if your financial projections reflect your hopes more than reality, people may hesitate to back your business. Thats why its vital to make every effort to succeed. However, its easy to get overwhelmed, especially if youre collaborating with others in your organization. Bizplan is a modern business plan software that provides tools like a guided builder, drag-and-drop templates, automatic financial projections, online fundraising tool, etc. If youre working with an accountant, go over the plan together to understand how to explain it when seeking funding from investors and lenders. Healthcare meeting planners specialize in organizing meetings and conferences for healthcare professionals. Financial managers typically do the following: Prepare financial statements, business activity reports, and forecasts With Growthinks Ultimate Business Plan Template you can finish your plan in just 8 hours or less! It often includes the companys mission statement and description of the products and services. A business plan is a formal written document containing the goals of a business, the methods for attaining those goals, and the time-frame for the achievement of the goals.It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets. While established businesses normally produce an income statement each fiscal quarter or once eachfiscal year,for the purposes of the business plan, an income statement should be generated monthly for the first year. Growthinks Ultimate Business Plan Template has been used in more than 500 industries to create successful business plans. 1. Not knowing your expected income and expenditure will make it difficult to plan, and hard to find investors.. While there are many ways to go about developing a plando it yourself, use a robo-advisor, work with a financial planner, or a combination thereofSchwab has identified the eight critical components every plan should include, regardless of the method used to create it. The marketing and sales plan component of your business plan details your strategy for penetrating the target markets. Monitoring, Application Growthinks Ultimate Business Plan Template is designed for both established businesses and startups, and both for-profit and non-profit businesses. Think of any documents that represent your current monetary situation as a snapshot of the health of your business and the projections being your future expectations. Its crucial to prove that your business will be financially viable. Guides, Terms of Use Your financial projections will be the most analyzed part of your business plan by investors and/or banks. Certification, Advanced Thus I am assured of success in business and also when persuading investors. Create a range that is optimistic, pessimistic and most likely to happen, so you can anticipate the impact each one will have. The excel spread sheets made it easy to provide forecasts and budgets. Thanks for all of your help! Explore our 200+ sample business plans to find match for your business. A well-put-together financial plan can help you achieve greater confidence in your business while generating a better understanding of how to allocate resources. Generally, the financial section is one of the last sections in a business plan. Cash back, travel rewards, 0% intro APR financing: all of these can be great credit card perks for business owners. A business plan is a documented strategy for a business that highlights its goals and its plans for achieving them. The financial plan templates are created by skilled and experienced financial modeling experts. What Are Financial Projections Used for? This program gives you the precise techniques the worlds most successful business executives use to achieve amazing success in less time than youd ever think imaginable! Personal financial advisors provide advice to help individuals manage their money and plan for their financial future. What business practices are followed by industry at present and what are the future trends they are planning to pursue. Availability, Business The Financial Services Authority (FSA) website has not been updated since 2013 when the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) were formed. A personnel plan looks at existing positions and helps you see when its time to bring on more team members, and whether they should be full-time, part-time, or work on a contractual basis. I used your guidance and since then have raised more than $1 million in angel investment for our new interactive video technology business.. To get started, you need to learn some of the key elements to financial planning. This is part of the financial projections and Contents of a Business Plan Guide, a series of posts on what each section of a simple business plan should include. Importantly, if you dont have any unique success factors, think about what you can add to make your company unique. Of course, youll also need to document and track your budget. Relevant financial information is presented in a structured manner and in a form which is easy to understand. Examples of current liabilities in a financial plan are accrued payroll, taxes payable, short-term loans and other obligations due within a year. Can I really create my business plan myself? A business typically prepares a balance sheet once a year. I want to say how impressed I am with the planning template product I bought from you. Your list of operating expenses may include: Once you have listed all of your operating expenses, the total will reflect the monthly cost of operating your business. The post is one of a series covering the process of how to do financial projections for a business plan to start your business. When I approached the bank and they saw my business plan, they were blown away! This template is a dream saver and I guarantee that no one will face disappointment., I just purchased your business plan template it is exactly what I need People think starting a new business in bad times is crazy, me? Business ratios: Sometimes you need to look at more than just the big picture. Africa, Middle The appendix is used to support the rest of the business plan. Before you start writing your business plan for your new coffee business, spend as much time as you can reading through some examples of the Food, Beverage & Restaurant Business Plans. Cash back, travel rewards, 0% intro APR financing: all of these can be great credit card perks for business owners. Price, Quote, Reporting Try to break out your target customers in terms of their demographic and psychographic profiles. We are dedicated to getting people and goods where they need to go, be it by air, land, rail or sea, and to deliver the world class, 21st century infrastructure that our region needs to keep thriving. Get this complete sample business plan as a free text document. Create a strategic plan: Starting with a strategic plan helps you think about what you want your company to accomplish. Make financial projections; 9. Your business runs on cash. for example, seeing if your business meets the financial projections you included). She has run an IT consulting firm and designed and presented courses on how to promote small businesses. Its crucial to prove that your business will be financially viable. Similarly, brewing a fresh cup of coffee is an enormous challenge as it contains different variables to consider. Businesses include supporting documents such as budgets and financial statements, as well as funding requests in this section of the plan. As a coffee shop, it is a good practice to know what new ideas are working for your competitors and can be included in your business optimally. Not knowing your expected income and expenditure will make it difficult to plan, and hard to find investors.. Then, you will learn how to write a skin care business plan step-by-step so you can create your plan today. We not only help you quickly and expertly finish your business plan, but we help you grow a thriving business. The template pushed me to think in areas I had not put much focus on before, and I was able to put all the information in a well laid out plan and have it look very professional. (opens in a new The financial plan includes detailed explanations of the key assumptions used in building the business plan model, sensitivity analysis on key revenue and cost variables, and description of comparable valuations for existing companies with similar business models. Monitor and compare goals: Look at the actual results in your cash flow statement, income projections and even business ratios as necessary throughout the year to see if you need to modify your plan or if youre right on target. The balance sheet is used along the other financial statements in order to calculate business financial ratios, discussed further below. Download our Ultimate Business Plan Template here > It can be anything from having a book cafe, a unique name, or decor that makes you look different from all the coffee shops in your vicinity. Hi, Im Dave Lavinsky, the co-founder and President of Growthink. Your direct involvement and assistance in my case is very much appreciated. Expert-picked business credit cards with rich rewards and perks. Our modular battery pack designs and product configurations allow us to rapidly deliver customized solutions for superior performance and reliability, no matter the application. Assets and liabilities: Both of these elements are part of your balance sheet. The cultural shift around geography affects the consumption of coffee and how businesses redefined their business strategy too. (In fact, most potential investors will expect you to have a business plan ready.) The financial section of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea. You may need one to apply for a business loan. Guess what? Reading some sample business plans will give you a good idea of what youre aiming for. The income statement shows your revenues, expenses, and profit for a particular perioda snapshot of your business that shows whether or not your business is profitable. tab), Global Putting together a business plan for your Coffee Shop business is a worthwhile endeavor. Growthinks Ultimate Business Plan Template made it as easy as filling in the blanks and pressing print. Thanks again., David SchleiderFounder & President / TrueLemon. In this article, you will learn some background information on why business planning is important. Starting your day without a cup of coffee is unimaginable. Since 1999, Growthink has developed business plans for thousands of companies that have gone on to achieve tremendous success. Expert-picked business credit cards with rich rewards and perks. Download Startup Financial Projections Template It is remarkably difficult to start a small business. Corporate planners organize internal business meetings and meetings between businesses. Make financial projections; 9. for example, seeing if your business meets the financial projections you included). This is part of the financial projections and Contents of a Business Plan Guide, a series of posts on what each section of a simple business plan should include. For this, youll need revenue and expense projections. Once you have an overview of your business finances, you can make strategic decisions to ensure its longevity. As I revise my May Cookie Co. Business Plan, I am prompted to write you to THANK YOU. It summarizes all the financial data about your business in three categories: The relationship between these elements of financial data is expressed with the equation: Assets = Liabilities + Equity. Key elements include the following: These sections detail the internal strategies for building the venture from concept to reality, and include answers to the following questions: The management team section demonstrates that the company has the required human resources to be successful. The financial plan is where the entrepreneur communicates how he/she plans to monetize the overall vision for the new venture. The financial section is composed of four financial statements: the income statement, the cash flow projection, the balance sheet, and the statement of shareholders' equity. For investors, the cash flow projection shows whether your business is agood credit riskand if there is enough cash on hand to make your business agood candidate for a line of credit, ashort-term loan, or a longer-term investment. Using this vast experience, weve created and constantly refined Growthinks Ultimate Business Plan Template to be the hands-down quickest and easiest way to create a professional business plan that allows you to raise capital and build a strategically sound business. Success, Support The financial section of your business plan determines whether or not your business idea is viable and will be the focus of any investors who may be attracted to your business idea. Before Growthinks Ultimate Business Plan Template, I was really frustrated. 1. Sales forecast: How much will you sell in a specific period? Do not confuse the cash flow projection with the cash flow statement. The next post in this series is the final section, and deals with the planned exit for investors. And just as the name implies, when complete, youll want this to balance out to zero. We recommend using LivePlan as the easiest way to create graphs for your own business plan. It helps you stay at the top of everything and helps you devise business strategies to overcome competition. Numbers used to calculate these ratios come from your P&L statement, balance sheet and cash flow statement and are often used to help request funding from a bank or investors. Its recommended by me and many experts including the Small Business Administration to write the executive summary last. Get creative, think of ideas thatll help you save money in the beginning, and keep updating and building around your theme as your business grows. The guided business plan creator prompts you to answer some questions to build a ready-to-use business plan. Plan your resources, distributors for ingredients at the best possible price. Corporate planners organize internal business meetings and meetings between businesses. Over the past 20+ years, we have helped over 1 million entrepreneurs and business owners write business plans. Our Ultimate Business Plan Template Members Area gives answers to all your questions, plus access to our amazing customer support team. Services, System Product Demos, Business And on the other side list your liabilities and equity (or how much money is generated by the business). After several years, you should have several business plans you can review to see what worked and what didnt. Create financial projections: This should be based on anticipated expenses and sales forecasts. A description of the companys desired strategic positioning, Detailed descriptions of the companys product and service offerings and potential product extensions, Descriptions of the companys desired image and branding strategy, Descriptions of the companys promotional strategies, An overview of the companys pricing strategies, A description of current and potential strategic marketing partnerships/ alliances. With NetSuite, you go live in a predictable timeframe smart, stepped implementations begin with sales and span the entire customer lifecycle, so theres continuity from sales to services to support. Since 1999, we have helped over 500,000 entrepreneurs to successfully start, grow and/or exit their companies. Assets: How much cash, goods and resources do you have available? trends. Customer Support, Business We are dedicated to getting people and goods where they need to go, be it by air, land, rail or sea, and to deliver the world class, 21st century infrastructure that our region needs to keep thriving. Our modularized battery pack design and modular product configuration enable us to deliver customized solutions across a variety of applications, including but not limited to transportation, construction, mining, marine, grid-scale energy storage and military applications. The financial statements themselves should be placed in your business plan's appendices. Every business plan should have a full set of financial projections in the appendix, with the summary of these financials in the executive summary and the financial plan. This post will act as a general index and be a place to reference all the posts in the series. Leader in personal finance news and business forecasting. I just had to enter in our average check and amount of customers we anticipated feeding every day and then our historical expense percentages and the spreadsheet did the rest of the work. This element of your plan must identify your direct and indirect competitors, assesses their strengths and weaknesses and delineate your companys competitive advantages. Digital Marketing Agencies, Apparel, Footwear and Expert-picked business credit cards with rich rewards and perks. Regularly checking in helps you spot potential problems before they get worse. I was so impressed with how efficiently the template helped me complete my plan- specifically the financial projections which for a lot of business plan authors are the most intimidating part. & Digital Marketing Agencies, Apparel, Its one of the best Business Plan templates that Ive ever come across., Dave Lavinsky really understands how to create compelling business plans and raise capital, and his products succeed in infusing this knowledge.. make it to the 10-year mark. Before you start writing your business plan for your new coffee business, spend as much time as you can reading through some examples of the Food, Beverage & Restaurant Business Plans. In the United States of America, over 50% of 18 years of age drink coffee every day, which means 150 million daily coffee drinkers. Only about half stay open for five years, and only a third Financial managers are responsible for the financial health of an organization. For example, the direct competitors to a pizza shop are other local pizza shops. Expertly and comprehensively discussing these components in their business plan helps entrepreneurs to better understand their business opportunity and assists them in convincing investors that the opportunity may be right for them too. (In fact, most potential investors will expect you to have a business plan ready.) Within 24 hours he got back to me, very professional presentation., We review funding requests all the time. Creating a small business financial plan is crucial to understanding how to allocate resources, to procure investments and to generally make the right decisions. Multiply this number by six, and you have a six-month estimate of your operating expenses. We have created this sample Coopers Cup Coffee Shop Business Plan for you to get a good idea about how a perfect coffee shop business plan should look like and what details you will need to include in your stunning business plan. Once youve created your plan, you should have answers to the following questions: Financial plans that cant answer these questions need more tweaking. The post is one of a series covering the process of how to do financial projections for a business plan to start your business. Wendy DrummPresident / Advanced Equine Research Institute, I downloaded your template onto my computer, opened it up and I actually was able to finish my business plan by the end of the day!, Brett PerrinePresident & Co-Founder / International Education Exchange. They typically include four basic financial statements accompanied by a management discussion and analysis: Business ratios are a way to see things like your net profit margin, return on equity, accounts payable turnover, assets to sales, working capital and total debt to total assets. Bachelor's degree: $94,170: Securities, Commodities, and Financial Services Sales Agents: Securities, commodities, and financial services sales agents connect buyers and sellers in financial markets. Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.. The cash flow statement shows the flow of cash in and out of your business. Deep diving into the coffee industry to know what it has to offer supports your startup. A formal business plancomplete with financial data and projectionsgives you a professional document you can use to make your case. Plan for contingencies: Look at your cash flow statement and assets, and create a plan for when theres no money coming in or your business has taken an unexpected turn. Of course, youll also need to document and track your budget. Will you need to buy more equipment or hire more staff? But after about a month I went ahead and I purchased the template. Excel-based templates for multi-year financial projections (P&Ls, cash flows, balance sheets, ratios & charts). Im honored and flattered to have been recognized as the worlds foremost business planning expert by BusinessWeek, Forbes and others. Footwear & Accessories, IT I have written business plans before, but wanted to get advice from a more broad, experienced prospective. Coffee is the second-largest traded commodity in the world. Click here to finish your business plan today. Direct competitors are those that provide the same product or service to the same customer. Thats why Growthinks Ultimate Business Plan Template includes an Operations Plan section. Financial managers typically do the following: Prepare financial statements, business activity reports, and forecasts Also known as a profit-and-loss statement (P&L) or pro forma income statement, it lists the following: Balance sheet: Rather than looking backward or peering into the future, the balance sheet helps you see where you stand right now. I was so happy to find your business plan template. Financial management software is worth the expense because it offers automated capabilities such as analysis, reporting and forecasting. This is part of the financial projections and Contents of a Business Plan Guide, a series of posts on what each section of a simple business plan should include. Not all of the categories in this income statement will apply to your business. Small Business Financial DUBLIN, Nov. 11, 2022 /PRNewswire/ -- The "MVNO Business Plan Financial Modeling Tool" report has been added to ResearchAndMarkets.com's offering.. Use our sample Coopers Cup Coffee Shop Business Plan created using Upmetrics business plan software to start writing your business plan in no time. Copyright Growthink Inc., 2022 | Privacy Policy, Business Plan Template for Entrepreneurs & Business Owners, How to Create a Great Business Plan Executive Summary, download Growthinks Ultimate Business Plan Template, One of the key purposes of your business plan, How to Write a Business Plan + Free Template, Download The 10 Key Components of a Business Plan Here, Growthinks Ultimate Business Plan Template. Last modified August 12th, 2020 by Michael Brown. I have found it not only user-friendly but thorough (without being overwhelming) and professionally designed. Get trusted advice on investing, retirement, taxes, saving, real estate, cars, college, insurance. Service Management, Partner After getting started with upmetrics, you can copy this coffee shop business plan template into your business plan and modify the required information and download your coffee shop business plan pdf or doc file. Using spreadsheets can get the job done when youre just getting started. Download Startup Financial Projections Template The guided business plan creator prompts you to answer some questions to build a ready-to-use business plan. While there are many ways to go about developing a plando it yourself, use a robo-advisor, work with a financial planner, or a combination thereofSchwab has identified the eight critical components every plan should include, regardless of the method used to create it. 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    what is financial projections in business plan