We’ve often seen business plans and projections put away to gather dust after they’ve been used for a particular purpose, like raising finance, but the more switched on business owners use the plans/forecasts as the blueprint for their future. So here are six of the top reasons we’ve seen successful business owners use forecasts to help them get the business they need to have the life they want:
1. Profitability – You can plan your profitability, a good forecast will let you see what your business will need to do to achieve the level of profit you want.
2. Cashflow – Forecasting helps you see what the demands on your cashflow will be so that you can plan for them.
3. Helps you to focus on your business – To be able to produce a good forecast you need to be able to understand how your business works, and when things change, what the impact of those changes will be on your business.
4. Identify the resources for growth – As well as equipment and premises a plan will help you determine what sort of team you’ll need to achieve it.
5. See what your marketing and sales effort will need to achieve – Your plan will tell you what sales you need to make in order to meet your forecasts and from this you can work out what marketing and sales actions you need to take to achieve them.
6. Motivation for your team – A good forecast will clearly show what you and your team will need to do and provides a road-map of the future for the business and at an individual level, something that team members can feel directly connected to.
We work with business owners to build the businesses they need to have the life they want, so if you want to build a forecast for your future, get in touch with me on 01803 296678 or email firstname.lastname@example.org