The financial projections of a recording studio business plan are generally designed to provide investors with a three to five-year projection period. These forward looking projections will help investors to form a solid understanding of the company’s future performance and identify risk areas. The most common method of presenting this information is in the form of an income statement, balance sheet, cash flow forecast, and P&L statement. A recording studio can be a tricky investment since it requires high up-front cost in niche equipment that has little use outside of music production Therefore, it is important to demonstrate that the studio can immediately generate clients and sustain a loyal customer base over time. At this point, other parts of the plan play a role to justify the revenue forecasts such as the competition, your business model, and intended marketing strategy. Using comparable recording studios to form the projections may be taken lightly by investors since the profitability of a recording studio is largely based on the skill set and reputation of the producer at the studio.