Financial projections are estimates of a company's future financial performance, typically covering a specific period, such as one to five years. These projections include key metrics like revenue, expenses, and profits, helping businesses plan for growth and make informed decisions. They are often based on historical data, market trends, and assumptions about future conditions. Creating accurate financial projections is essential for attracting investors and securing funding. They provide a roadmap for business owners to understand potential challenges and opportunities. By regularly updating these projections, companies can adapt their strategies to changing market dynamics and improve their overall financial health.