A Pro Forma Financial Plan » is a forward-looking financial statement that projects future revenue, expenses, and profitability based on hypothetical scenarios or assumptions. It provides a blueprint for potential financial outcomes, helping businesses anticipate their financial needs and strategize accordingly. This type of planning is crucial for securing funding, guiding investment decisions, and ensuring sustainable growth. By forecasting various financial metrics, companies can identify potential risks, set realistic goals, and make informed decisions to enhance their economic stability and success.