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4 Secrets of Meaningful Projections

by Ken Kaufman March 22, 2010

I have spent a lot of time recently reviewing, updating, and implementing financial projections into various businesses.  These activities prompted me to write the following article for American Express Open Forum: 4 Secrets of Meaningful Projections .

The main take-aways include the need to make them real and the need to use them.  Completing them does represent a task that you can check off of a list, never to return to your projections again.  Their real strategic and competitive value is in using them regularly.  Enjoy.

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Comments
Submitted by fred Bernhardt (not verified) on Fri, 04/30/2010 - 11:54.

i'd like to read your blog article on "4 Secrets to meaningful projections" and pass it on to my clients, but I can't open it anywhere from this page. How to I access it?

Submitted by admin (not verified) on Tue, 03/23/2010 - 08:25.

Ed,

I completely agree. Thanks for your comments!

Ken K.

Submitted by Ed Wielage (not verified) on Tue, 03/23/2010 - 05:58.

I believe another valuable benefit of preparing a projection is that in the process of building a projection you are building a model of your business that can help you gain insight into the dynamics of your business. Once you've built the model, it facilitates performing "what if" analysis. For example, what if sales increased by 5% how will that impact the bottom line, cash flow, etc.