What will your business look like in 12 months?

forecast planning May 25, 2022

Do you know what your business will look like in 12 months' time? A lot of people will say forecasting isn’t worth bothering with. After all, why would you forecast and look back at the last couple of years and what happened in that time? I firmly believe that you should always be looking to know where you’re going. Because if you don’t know where your business is headed, you’re just going to keep drifting around and missing potential opportunities and growth.

A plan gives you direction

When you have a plan for the next 12 months, you have a good direction of travel. You know what you want to do, where you make your money and how you want to make money in the future. Now you might want to carry on the way you are, or you may wish to change what you’re doing every three months, and that’s ok. But do you want to create lots of done-for-you products? Do you want just to have five clients and spend a day each week delivering for them? And if you do,...

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Why you should have a cash flow forecast

cashflow forecast planning Jun 10, 2020
Cash flow forecasting is critical in any business but lots of people neglect this area.
 
Imagine for a moment that you are wanting to buy a new car but you don’t have the cash for it.  You look at the options – you could lease, which would be more expensive but would only mean a monthly outlay, or you could save up to buy the car outright.  For each option, you would look at how you would save the money, or whether you could afford the monthly lease repayments.
 
You might look at your household budget, if you have one, or make a guess based on your bank balance, or just decide without looking and say you will put any shortage on your credit card.
 
Without planning, this could lead to significant debt.  You might choose a car that is more expensive than you can afford, or have monthly payments you can’t meet. 
 
It’s the same with having a cash flow forecast in your business.  How do you know whether you can...
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