Your small business is more than a job; it’s your lifeline. That’s why it’s important to take the necessary steps to effectively grow your business and keep it on an upward trajectory.
One of those steps is planning for the future, and one of the best ways to do that is through financial forecasting and projections. Forecasts show how your business is currently operating based on past and current numbers, and projections are predictions about future performance based on those forecasts.
Financial forecasting and projections allow you to plan ahead, take stock of where your company is, and establish a clear plan to get where you need to be. Because things are always changing, like economic volatility and market trends, this type of planning should be completed on a semi-regular basis.
There are three major benefits to forecasting:
1. Turning Goals into Targets
By planning out where you want your company to be in the next few months or years, you’re able to see the numbers and commit to reaching those results.
2. Feedback and Control
When your actual results vary from the projected results, this is a sign that something isn’t quite right. Having this early feedback allows you to control for future changes and variances.
3. Anticipate Future Issues
The accuracy of this years’ forecasts and projections allow you to anticipate next years’. This means you’re able to anticipate issues before they happen.
Small businesses don’t often employ a large number of people, meaning administrative tasks like data analytics and planning fall through the cracks. Stepping out of the day-to-day tasks and looking at the bigger picture can set you up for success down the road, but you don’t always have the time or resources to do that.
Schlenner Wenner & Co has the right tools to help your business grow now and plan for the future – so you can focus on what matters most today. If you’re ready to take your small business to the next level, email Jill Hoffmann at email@example.com, Steve Schueller at firstname.lastname@example.org, or call us at 320-251-0286.