Financial projections are an essential tool for any startup looking to make a mark on the business world. They take into account all past and future financial activities, such as income, expenses, investments, capital, and other costs and revenues associated with the startup. The purpose of financial projections is to help measure the financial health of a startup, anticipate future developments, and set targets that can be achieved within a certain timeframe. By creating accurate financial projections, startups can make informed decisions regarding their budget and resources and ensure that their goals are attainable.