Create a Cracker Year for your Business – Forecast and Plan for Success
Creating a Forecast or a Budget is the most crucial thing you should be doing as a business owner over the next month.
Running your business without a forecast is like setting off on a road trip without a GPS. It’s making turns without really knowing where the road will lead. Unless you set clear goals for where you want to take the business, it will just meander along, at the mercy of the economy and general market conditions. It’s business by default.
A Forecast will be your roadmap, it plots your course, plans for heavy traffic and tolls, and gives direction. It allows you to run your business with intention. Designing your future destination.
Where are you now? Where do you want to be?
How will you know when you get there?
The first step in charting your course is to understand where you are right now. A factual look at your numbers now is like standing naked on the scales in front of a full- length mirror. For most of us, the result will not be as good as we would like it to be.
What are the sales, the variable costs, the margins, the overhead and lastly, the profit? What is the reward for all your hard word and are you happy with where the business is at?
OK – so where do we want to be?
Congratulations, you have just taken the first step towards writing a roadmap and creating a forecast that will drive your business forward and towards this goal.
The numbers in your forecast will act as signposts along the journey and will help you make quick strategic decisions when you go off-track.
A forecast does not need to be complicated, but like a GPS on a long journey – it is an absolute essential!!
Here’s how a Forecast will create a cracker of a year for your business:
- You will know whether your business has enough money to fund current operations
- You will know if it profitable or losing money
- It will provide you with an opportunity to plot a better course – run scenarios that produce better results and push you to consider the actions necessary to achieve this
- It is the base from which results can be measured
- It will align your team and give them a sense of ownership for the part they play
- It will control spending
- Increase efficiency and productivity
- Provide accountability
- Allow you to identify problems as soon as they arise
- You will be better able to adapt and change
- You will make decisions MUCH faster
- It will make you more money
If you do one thing between now and 30 June 2019 for your business – make sure you put a Forecast in place.