Create a Cracker Year for your Business – Forecast and Plan for SuccessWant to know why your business needs a Forecast / Budget?
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 road-map 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. Contact your Trusted Advisor today to see how we can help you plan for success!
Want a little more information? Receive our Budgeting Tips for Your Business directly to your inbox!!
Ready to chat?
Whether it be a quick phone call, meet for coffee, or want to bash it all out in an email – Contact us today! No charge, no obligation.
In the last week of November, Xero will roll out their new navigation – Helping you get a simple, beautiful experience. This is so everyone can get on with daily tasks easily and efficiently. It’s based on research and testing with hundreds of people – Including...
Are you aware that as a director of a company, you can be personally liable for the ATO debt of that company? Yep - That's right! As part of the 2018 Federal Budget, the Government announced a package of reforms aimed at addressing illegal phoenix activity. One of...
Xero’s App Partner of the month for October is ServiceM8. ServiceM8 is smart job management software for trades and services, eliminating paperwork and improving productivity for small businesses. This is exciting news for us, as during Amy and Jess’s recent trip to...