Why you need to calculate Financial Projections ?

Every entrepreneur comes out with his set of ideas. And truly, Idea IS the catalyst for a business to take existence. However, it's continuous cash-flow/ profit awareness which makes the business succeed. For this, every business should get their Financial Projections done after the initial built up of Business Model Canvas.

What are financial projections, and why they are vital ?

An idea is an imagination. A Business Model Canvas is a little detailed imagination. Once you actually document the revenue-expenses on each of the component, it gives you a near-true picture as to where do you stand financially. So you can adjust factors.

How long should one project ?

Minimum 3 years and ideally 5 years. As any business is expected to go through some hi-lows during the period. After this passage, the business owner knows the tricks of the trade. I would recommend to make 5 year projections for 1-gen entrepreneur and 3 year projections for 2nd,3rd gen entrepreneurs.

Standardized Project Reports are useless

There are many available on the internet. However, I would suggest you to get it done from a chartered accountant who will need inputs from you, for your project. There can't be a standard project report for a 2000 LPH plant. True, it can give you a nearby cost, but finally your overheads are different. Other costs like distribution cost, admin expenses will be different in each area.