Forecasts: driving your business to success
It is very difficult to drive in a heavy rainstorm – the road is slippery and there is low visibility due to the downpour. You can choose to proceed despite the risk, slow down and arrive at your destination late, or stop and hope for the rain to pass.
If you’re an entrepreneur and haven’t created a business forecast, then you’re most probably driving your business in heavy rain with a blurry windshield— there are great risks involved and you’re taking too much time to achieve your goals.
As a smart business owner, you should know where you want your business to be in the next six months, or even in the years to come. Careful planning needs to be done to establish your goals and identify the steps needed to achieve positive results for your business – this is where forecasts or projections are essential.
Projections can provide you with a general outlook of what the future holds for your business. They can also be used to monitor your business’ performance to ensure that you are on track in achieving your goals.
One of the keys to effective forecasting is to plan ahead. As the 2016-2017 financial year is coming to a close, now is the perfect time to start planning to put your business in a better position for the new financial year.
Review previous years and see what critical measures are needed for your business to succeed. Base projections on numbers and factual data that will help you understand what changes need to be made.
If you would like an expert to undertake projections for your business, you can partner with our accountants at MP+. We will work with you to create 3-way projections to ensure that you are planning for performance, cash flow, and building your asset position.
Don’t take the risk of driving your business in low visibility, use forecasts to clearly see what is lying ahead – contact McKinley Plowman business accountants here.
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