Financial forecasting helps the company in estimating the quantity of fund needed to achieve strategic goal and how the company can raise the fund. Brand new company: In brand new company, there is not enough historical data available. Entrepreneur does not know exactly how his company will fair in competitive market. It makes financial forecasting more important. The business owner wants to know exactly what the need of fund is and how he can raise the fund. Knowing in advance how much fund he can raise helps him in planning the operation . Being a new company, he may not have many means to raise fund so he may have to go slow. Family owned company: In a family owned business , owners have unlimited liability. Any wrong move can make them bankrupt. A proper financial forecasting is very important in case of family owned business. How much revenue the business will generate, how much
This is the end of the preview. Sign up
access the rest of the document.