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Careful financial planning is crucial when establishing a new business venture, not only in the start-up stage as discussed in chapter 3, but continually once your business is established. Planning or forecasting your revenues and expenses may seem like an impossible challenge for the new business owner because there is no financial history to base your forecast on, but it can and must be done. You need to have two simple issues in mind as you start your new venture: what the costs are and what revenues you can expect from your business. This chapter discusses some reasons for forecasting sales and expenses for your new venture.