Presenting carefully thought-out financial projections to investors is an exercise in lowering perceived risk in both you as an entrepreneur and your idea.

Question

Quizplus · Accepted Answer

Financial projections demonstrate that you have a clear understanding of your business model and have thoroughly considered the potential revenue streams and expenses. This helps investors see that you have thought carefully about the feasibility and profitability of your idea, which can lower the perceived risk of their investment.

Presenting Carefully Thought-Out Financial Projections to Investors Is an Exercise