3 reasons every business needs a forecast (and this isn't about weather)

I love a good forecast, it’s where my nerdy side comes alive! And they are so good for businesses, set of goals the business and its stakeholders calculate, agree to, and come up with a plan to execute. I am sure the reason I love forecasting is because I love goals, setting, achieving, planning – it all gets me excited.

As with a well set goal, the forecast provides you with an understanding of what you want to achieve, what it will take to achieve that goal and provides you with a framework to track progress along the way.

Other than my love for a forecast, here are 3 reasons you need to get one in place in your business. It doesn’t matter how big or small you are, YOU NEED ONE!

1~

The process of creating the forecast will provide so much clarity about your business

A good forecasting process includes reviewing what is driving your income, the time and resources involved. This deep dive into generating income provides clarity about what you can do with what you currently have, allowing you to make an educated decision about how you want to invest your resources (time, money and effort).

As you break down what is currently happening in your business and pair that with the financial outcomes you desire, you will gain clarity about what will work and what won’t. Thus creating a business you love, not one filled with things that don’t bring you joy.

2~

It provides you with a road map to run your business from

When setting goals, I always encourage people to make sure they don’t just set a goal, but they set a plan to achieve that goal. This is exactly what a financial forecast will do for your business. We start with an income target and then break down what it will take to achieve that target.

I was working with a client on this just last week, and she now understands exactly what it will take to achieve her desired turnover (a fancy name for business income) of $500k per year. She knows what marketing work she needs to focus on, her target sales calls and where her time will be best spent.

3~

It gives you a yardstick to measure against

There is no point in setting a goal if you don’t track how well you are going against that goal. You need to know if you are achieving it, how it feels to achieve it and when to make tweaks to the process.

For every forecast I set up, I make sure my clients have reports they can review each week, month and year to see how they are progressing. In our coaching sessions we also review how it feels. If they are on track, are they happy? Are they doing the work they love or is it now filled with tasks that don’t bring joy? This process of constant reviewing allows us to make small        tweaks along the way instead of burning out or blowing out on expenses.

When you are working towards a higher income or a better life, most of the time it requires reviewing both aspects. After all, what is the point of having a highly successful business if you don’t love getting out of bed in the morning?

Do you have a forecast in place for your business? If not now is the time to get started. Join me for a free call via the button below to discuss my process.

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