Why Business Projections Matter More Than You Think
- Marcela Shine
- 2 days ago
- 2 min read
Most founders do not avoid projections because they are bad at business.
They avoid them because they think they are not “numbers people.”
Because they are afraid of what the numbers might say.
Because they do not realize how critical projections are for prioritizing what actually matters in the business.
So instead of looking, they guess.
They react.
They stay busy and hope that is enough.
Sound familiar?
Projections are not about predicting the future perfectly. They are about making clearer decisions with the information you have today.
What Business Projections Actually Are
Business projections are a forward looking estimate of how your business is likely to perform financially over a specific period of time.
At a minimum, they answer four questions:
How much money you expect to bring in
What it actually costs you to deliver
Your margins, because that is where cash flow is made or lost
When cash enters and leaves the business
Quick reality checkRevenue is not cash.
Profit is not cash.
Margins are what give you room to breathe.
Think of projections as headlights. They do not tell you where you will end up. They help you see far enough ahead to reduce avoidable mistakes.
Projections Do More Than Show You the Numbers
Projections do not just describe your business. They set the goals of your business.
Once projections are in place, they tell you what needs to happen next.
Very clearly.
Most decisions fall into one of four buckets:
Get new customers
Retain existing customers
Grow revenue from existing customers
Decrease costs
Without projections, everything feels equally urgent. With projections, priorities become obvious.
You stop asking “What should I work on?”And start asking “Which lever actually moves the business right now?”
Why Founders Avoid Them
Most founders are not avoiding projections because they do not care.
They avoid them because:
They assume they are bad at numbers
They worry the numbers will confirm something they do not want to face
They think projections are only necessary for investors or loans
None of that means you should avoid them.
It means no one showed you how to use projections as a leadership tool.
What Happens When You Skip Projections
When projections are missing, the same patterns show up:
Everything feels urgent because nothing is prioritized
Pricing, hiring, and marketing decisions feel heavier than they should
Cash issues feel like they appear out of nowhere
Important!
Most businesses do not fail suddenly.They drift into trouble slowly.
Projections help stop the drift by giving you visibility before small issues turn into big ones.
Where AI Fits In
Yes, AI makes this a heck of a lot easier.
It can help you move faster, run scenarios, and catch gaps. But it still needs your inputs.
AI does not know how your business actually works. You do.
Stick with us and we will help you get those inputs right!
Want Help Building Yours?
If you want guidance, we host a free Know Your Numbers workshop monthly where founders learn to build projections step by step.
You do not need perfect or existing data. You do not need to be a numbers person.
You just need a starting point.
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