What Are the Risks of Overly Optimistic Projections?
The risks are numerous and can have long-lasting effects:
1. Financial Instability: Unrealistic revenue projections can lead to cash flow problems, making it difficult to sustain operations. 2. Resource Misallocation: Overestimating market demand can result in overproduction, leading to wasted resources and unsold inventory. 3. Damaged Credibility: Consistently missing targets can erode trust with investors, employees, and customers. 4. Poor Decision-Making: Inflated expectations can lead to risky business decisions, such as premature scaling or unnecessary [expenditures](https://).