How financial forecasting will accelerate your business growth

Business
Business financial forecasting used to accelerate growth on the laptop

Successful businesses don’t succeed just because they have a great service or product. They thrive because they are prepared for what’s ahead.

Thriving companies ensure they’re prepared to deal with success by forecasting growth and considering different scenarios about how the future might look. That means they know where to invest, how to allocate resources and what preparations to make for each stage of their journey.

This isn’t just about cash flow, it’s about growth and not allowing opportunities to run off into the sunset before you’ve even identified that they exist.

To predict the future you need to understand the present

You can’t grow without knowing what you have to build upon. Think of it like a health check – shining a light into every nook and cranny of your organisation and revealing what needs a little boost.

Take last year as a starting point for example, what does that look like if you use this as a basis for your forecast? With zero changes being made to the organisation. Get into the habit of playing – have multiple browsers open so you can check your visualised dashboards as you go.

You need to consider all your in and outgoings. What’s your current staff situation and hiring needs for the next 6-12 months? Where do you generate your income? Is this set to change? Can you move clients onto retainers? What assets and liabilities do you possess, and so on and so forth. Once you have this in place, you are in a position to start forecasting.

Now you are no longer making decisions based on hunches but on facts. You’ll be able to see what needs addressing, what needs investing and even what needs axing. A path to prosperity should start to emerge.

Manage your financial data, don’t let it manage you

Spreadsheets are fine when you are starting out and only have a handful of clients. But this isn’t a scalable, reliable process. The more business you win the less effective it becomes, so at the time you should be celebrating…you can start to panic.

Innovations in cloud accounting mean SME owners can now make their data accessible in real-time when and wherever they want it. This has changed the game. With your data in the right software, you can move on from using your accounts as a historical record to utilising it as something that helps you make better decisions today to avoid risk and plan for a successful future.

Take advantage of multiple opportunities

Once you have your forecasts in place with Futrli, it takes seconds to visualise different scenarios. If you want to see what winning that coveted client would do to your annual profits, then it can be visualised in just a click or two.

Furthermore, you can run scenarios simultaneously and view them side by side, visualising any KPI you wish, helping you get a better grasp of your options and take the fear away from making the wrong decision.

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