Don’t just make a business plan, then leave it
You’ve spent the time crafting your predicted future, now use it every day. Don’t lose sight of the real picture. Actual v budget, Actual v forecast, Budget v forecast, Scenario v scenario – it is all so much clearer out of a table and into some clear visuals.
Don't let your future gather dust...
Let’s start with your sales forecast. Sales are the heartbeat of your business and apart from the cash in the bank, your actual sales will probably be the first KPI that you look to every day or week. How are they tracking against what you forecast you would achieve?
Have your sales team all met their target? Have you targeted more customers as per your marketing plan? Is your conversion rate from Google Adwords at the % that you stated it would be? If any of these or 100 other factors depending on your industry are not what you stated they would be, the contributing factors need to be worked out and action taken with your team.
Imagine you start to miss your sales forecast consistently every week. Not only that, the credit terms for the sales you are making start to get longer than your forecast too. If you aren’t monitoring your progress and taking swift remedial action, your cash position could drift into a worrying state sooner than you anticipate.
If there is one crucial piece of financial management you must do at whatever stage you are in your business – you must prepare and regularly update a cash flow forecast for at least the next 9-12 months. And the most important line in the cash flow is the sales assumptions – being up or down on sales will have a direct and possibly major impact on cash.
The analysis of these sales and the current trends of your business against any prepared budget or forecast is easy within FUTRLI. Don’t lose sight of the real picture. Actual v budget, Actual v forecast, Budget v forecast, Scenario v scenario – it is all so much clearer out of a table and into some clear visuals.
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