Archive for June 30, 2008

Building Quality Financial Projections

Probably one of the most uncomfortable things a first time entrepreneur has to attempt is their first set of financial projections.  Frequently I hear the following:

  • “Well…I don’t know how many people will buy from me!”
  • “I just took a WAG (wild ass guess).”
  • “This is so stupid…why am I doing this!”
  • “How the hell am I suppose to know?!?”

To all of them I answer “YOU are the expert in the business you are starting and You have to set some expectations for the banks and/or investors.” 

As you may have heard, “Financial projections are part art and part science”. 

So what does that mean?  Read the rest of this entry »

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