The first year is a fragile year and companies need to be cautious of how they spend their money. Projections are the "potential impacts of various recommendations proposed for implementation" meaning they are the plan to make money, but also spend money (David et al., 2020). Since this is so delicate the forecasts are very detailed and need to be revisited monthly to watch for pitfalls that would be critical to the successor failure of the company. Forecasts will entail resources needed, sales expected, cost of goods sold, etc.

Once they have been in business foran entire year, they will have their bearings and better understand how the market is receiving them. At this point, they can forecast farther out by using the data they have collected after the first year.

No one expects you to live with the budget and revenue projections you made 18 months ago when you have some recent data that gives a more definitive trend. Smart managers have contingency plans for situations that fall outside the realm of normal expectations. Sometimes I think entrepreneurs and managers forget that success can breed its own issues. What happens if your product or service takes off and you find you have an inadequate supply chain or insufficient capital and you can't supply enough product to meet demand?