Your forecast should be at the heart of your decision-making. When planning the next steps in your business’ journey, be sure to arm yourself with as much information as you can.
How many hours have you spent business planning? When you’re considering your next move, making assumptions about what might happen next is not an easy task but it is a necessary one.
Your forecast can act as your business plan, as the assumptions made can drive your immediate and long-term strategy. It’s inefficient to work in silos and, more importantly, it could open your business up to unnecessary risk.
Let’s explore the top 3 benefits of a holistic approach…
1. Forecast your future: work smarter, not harder
Build your forecast directly in Futrli to avoid manual errors and increase speed. Everything will be backed up in the cloud, so you know you’ll never lose your work.
If you were to build your forecast in spreadsheets, you’ll soon find you can’t keep pace with the rate your business trades and grows.
2. Get total clarity: combine your insights
Combining your past and present data is going to show you the clearest picture of your business’ health. Ask yourself questions to start thinking in the right way:
- What revenue have you forecasted this month?
- What progress have you made towards your target, today?
- How is year-end profit looking, when actual and forecast data is combined?
- Is more funding next year required?
- Have you identified the successes that you and your team can build upon?
If you don’t use forecast data in combination with actual data, you lose so much clarity for your decision making. An actionable business plan is your key business data presented beautifully on a dashboard, so you know where you are and where you are going.
3. Collaboration is key: keep everyone informed
It doesn’t matter what your best intentions are you cannot predict everything that will happen in your business. We’d argue that one of the most important parts of business planning and forecasting is the communication of your assumptions.
If you have a master spreadsheet which only you can access, it is hard to keep your team informed and on-target to hit their financial KPIs. Equally, if you’re seeking investment, you will be in a much stronger position if you can confidently visualise and articulate how they will be kept informed of the figures.