Preparing forecasts will help you to assess your likely sales income, costs, external financing needs and profitability. Financial forecasts are essential if you need to raise money from a third party, such as a bank.
In many countries it is now a requirement to demonstrate that you “know your customer”. Some people now talk about the need to “know your business” (KYB) and use the phrase
“know your customer” (KYC) to refer to individuals.