Welcome to the how of business with your host, Henry Lopez, the podcast that helps you start, run, and grow your small business.

And now, here is your host.

Welcome to the how of business.

This is Henry Lopez.

And this episode is focused on helping you create your

financial projections for your business plan. Financial projections, or they're also called

financial proformas, are in my opinion perhaps the most important part of a business plan.

I think it's the only way to project if your business model has the potential to be profitable and if the

business is worth the investment of your time and money. To receive more information about the

Howe Business, including links to the show notes page for this episode, and you're going to want to go

to download a sample financial pro forma or financial projection spreadsheet. And also to find information about my

next online financial projections workshop, I'll tell you more about that in a minute. But to get

those things, that information and the free download of an example spreadsheet that is the financial

projections, just go to the howab business.com and go to

the show notes page for this episode. On episode 382 of the Howa Business podcast, I shared my experiences

and tips with creating an effective business plan. In that episode, I mentioned how critical the

financial projections part of the plan are. It's what helps

you validate the financial viability of your business idea and model, and it's what a lender

is most interested in typically. What are your projections for how much profit this business idea

might make and by when? Those are some of the critical questions that we're trying to answer for ourselves,

for our investors, and potentially for lenders about this business idea that we have. Now,

remember that it's just a projection. While it's critical, it's important not to lose sight of the

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