If your paintball business is seeking investment from banks or financiers, it is likely that you will require financial projections. The typical set of forward looking projections covers a three to five-year period in the form of an income statement, cash flow forecast, and balance sheet. Having a custom financial model to form these projections not only helps investors to estimate risk, but also helps your company to make more effective decisions.
In some cases, a break-even and sensitivity analysis is also performed. These financial indicators will help your team and investors to more precisely determine how many customers you need to satisfy before breaking even from fixed costs. The sensitivity forecast will demonstrate how considerable revenue variances will impact your bottom-line profitability and ability to meet investor obligations.