Futrli can calm the mind of a business owner. Planning for all eventualities, you can relax with confidence knowing your business is under control.
You can’t 100% accurately predict what’s around the corner, but you can get an idea of how your movements will impact your success. With scenario planning, you’ll be reviewing 2 or 3 options for your business. As you plan for eventualities, you’ll notice your business looking stronger and ready to cope.
Let’s imagine a very basic example: you want to buy more equipment. You’d want to know that, firstly, you have enough in the bank, and, secondly, that you’ll get a good return on that investment before you went ahead with the purchase.
Scenario planning is used by accountants and business owners to be forward-looking and to stay ahead of potential events, rather than reacting when they occur. Of course, it should be noted that scenario planning is only as effective as the actions you take – with an unstable market, you can’t predict what’ll happen next but developing a strategy for an event will help determine how to act.
A useful feature of scenario planning with Futrli is its ability to conduct multiple scenarios. Use as many as you like, perhaps starting with a best, worst and middle case scenario for each question you’re asking about your business growth.
The more you do it, the stronger the position you’ll find your business in. This technology gives you the tools to plan for as many eventualities as you like – having a base scenario and layering other options on top will let you change the position of your business quickly and confidently.
Scenario planning is similar to your ‘what if’ predictions – you can even think of them as one. If your goal is to expand, then do you have the capacity to grow in a region or nationally? And what will the impact of that growth be on other areas of your business?
You’ll need a clear idea of how much revenue will return to the business, and how quickly it’ll come in, to see if it’s a worthwhile project. Similarly, taking on new staff members is a gamble. With scenario planning, you’ll be able to play with start dates and the number of people you might hire. Don’t stretch your cash too far – you can alter the details of their employment to better suit your bank account.