What’s in your Business Forecast?

‘Planning is bringing the future into the present so that you can do something about it now’

– Alan Lakein

When you're planning a fishing trip or hike, checking the weather forecast is a no-brainer - it prepares you for what’s ahead. Running your business is no different. Creating an annual forecast is like checking the weather for your business journey. It helps you spot potential storms, like poor cash flow, and adjust your course to brighter skies.

We specialise in helping small businesses stay on track with effective forecasting. With the right tools, your business can thrive in any conditions. Here’s why your forecast matters and what it can tell you:

1. Do you have enough sales in the pipeline?

A business forecast will reveal if your current sales efforts are enough to achieve the profit levels you want this year. This insight can help you adjust your strategy early.

2. Are your margins on point?

It’s crucial to assess if your margins are where they should be. If they’re off, you may need to review your pricing or production processes to stay competitive.

3. Is your business operating efficiently?

Forecasting highlights areas where your business could be more efficient. It might reveal opportunities to reduce costs or even show where investment could lead to better returns.

4. How much should you set aside for tax?

Nobody likes surprises when it comes to taxes. Your forecast can help you allocate the right amount ahead of time, so you're fully prepared when tax season rolls around.

5. Can you take drawings without running short?

One of the biggest questions small business owners face is how much they can take out of their business without affecting operations. Your forecast will give you clarity and peace of mind.

6. Are you on track to pay off debt?

Banks and lenders often have specific requirements for small businesses. A solid forecast will show whether you’re meeting these obligations and how much debt you can realistically pay down.

The great thing about business forecasting is that, unlike the weather, you can influence the outcome. If your forecast predicts bad weather, you can take proactive steps to bring out the sunshine. Adjust your strategy, improve efficiencies, or invest in areas that deliver better returns.

We’re passionate about helping small business owners navigate their financial landscape. By creating a detailed forecast, you’ll gain a deeper understanding of what’s working and what’s not, allowing you to make smarter decisions before the year even begins.

Got a forecasting question? Let’s talk!