Projecting financial statements

Before initiating a growth phase, it is important to develop a projected income statement, cash flow statement and balance sheet. These documents can be developed one, two or even five years into the future, depending on your situation. However, estimating figures that far in advance can be tricky. Profit margins are particularly difficult to accurately predict. If you go too high with your profit margins, your investors will consider your project unfeasible and not realistic. If you go too low, they won