Question 2.RQ.3: Why would it normally be easier for an established business ...

Financial Management for Decision Makers

Why would it normally be easier for an established business than for a new business to prepare projected financial statements?

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An existing business may find it easier than a new business to prepare projected financial statements for several reasons. These include:

past data concerning sales, overheads and so on for a number of years which may be used for comparison and extrapolation
close links with customers, suppliers and so on which will help to identify likely future changes within the industry and future price changes
a management team that is experienced in producing forecasts and that has an understanding of the impact of competition on the business.

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