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 financial projections involves analyzing various factors, including market demand, competition, and economic conditions. Businesses use these projections to set goals, secure funding from investors or lenders, and evaluate potential risks. Accurate financial projections are essential for effective strategic planning and overall financial management.