ABSTRACT
The objective of this introductory chapter is to provide perspective on the purpose of nancial modeling and planning and to explain the ingredients of nancial planning.
1.1 WHAT IS PLANNING? Most managers engage in some aspect of planning. A er all, the rst step in business is the establishment of the enterprise-a step that is the result of the entrepreneur’s dream about the wealth that could accrue from providing some good or service to others. at initial dream is part of the process of business planning. From its establishment throughout the rm’s existence the manager may be thinking about the future, wondering what will happen tomorrow, asking what will be the results of current decisions, and perhaps even dreaming of new enterprises.
