7/21/2021 Tip: Why Financial Projections Matter | Growthink

7/21/2021 Tip: Why Financial Projections Matter

Today’s Quote

“Success is how high you bounce after you hit bottom.”
~ General George Patton

 

Today’s Tip

Yesterday I told you about the importance of conducting market research to assess growth opportunities. In addition to market research, you must create financial projections to assess new ideas.

Specifically, you should create financial projections that show the potential impact on your bottom line should you choose to pursue these opportunities.

In developing these projections, be sure to identify the resources required to execute on the opportunity (including cash and human resources), the time needed (in months) to execute on the opportunity, and best, worst and average case scenarios.

Developing accurate financial projections for each potential growth opportunity will help you choose the one(s) that will have the greatest return on investment for your company.

 

Today’s Resource

How to Build a $10 Million+ Company

What’s the difference between successful multi-millionaire entrepreneurs and the typical small business owner just struggling to get by?

Well, there are a LOT of differences, actually…

But I’ve summarized the main differences on this page:

How to Build a $10 Million+ Company <—- 

The really interesting part is that you don’t have to work yourself to death to grow a wildly successful, eight-figure business…

In fact, when you follow this formula, you can make much more by working less…

How to Build a $10 Million+ Company <—- 

 

Trivia

Today’s Question: The most widely accepted explanation for the origin of which symbol is that it is the result of the evolution of the Spanish and Mexican scribal abbreviation for pesos?

Previous Question: In Japan, what term is given to a set of companies with interlocking business relationships and shareholdings, akin to a business group?

Answer: Keiretsu. There are two types of keiretsu: vertical and horizontal. 

Vertical keiretsu illustrates the organization and relationships within a company, while a horizontal keiretsu shows relationships between entities, normally centered around a bank and trading company. There are currently 6 major keiretsu and a host of minor ones.

 

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