Forecasting, whether it's e.g. cash flow forecasting or sales forecasting, is your bespoke map of potential futures for your business. Build a strong growth plan to act as a springboard to get you to where you want to be and better understand future cash flows and your likely cash position to inform decision making and reduce uncertainty. It’ll educate you on the best path to take and warn you of the pitfalls you may face on the way. May the road to business greatness begin…
Keep your cash flow forecasting up to date
Regularly update forecasts in order to evaluate your business’ current position as well as its potential futures. This improves the accuracy of your cash forecast. Should more/less money be invested in staffing? Is a certain area/team underperforming in your company? Everyone needs a reality check and regularly updating your forecasts puts you directly in the midst of the facts.
Include liquid assets, due bills, your income statement, and invoices, allowing you to look at cash flow rather than just profit and loss. Keep an eye on your cash flow; do you need to increase your debt collecting reputation or lessen your expenses? Look for optimization in every part of your business any small tweak could be a massive growth opportunity.
Optimize your growth plan
Having a growth plan is one thing; having an attainable, yet ambitious growth plan based on data-fueled financial predictions is another - developing a cash flow forecast to support decision making in your organization. With your expected financial peaks and troughs laid out in front of you, mold your growth plan to fit this frame. Predict the best time to make growth moves, safe in the knowledge that you’re in a secure position to do so.
Additionally, forecasting allows you to prepare for potential hardships, calculating things like capital expenditure. Respond by spending more conservatively in the months prior or researching funding options. Either way, there is a range of options available to you and you’ll be thankful for the time to prepare. Your survival is dependent on how skillfully you traverse pitfalls, in equal measure to how effectively you grow.
Beyond financial preparation, forecasting allows you to optimize your inventory, minimize unnecessary expenditure and modify your staffing. If you are prepared for a busy spell, you can maximize the benefits and alternatively, if you’re prepared for a dry spell, you can minimize the loss.
Plan your next move through scenario planning for your business
Use what-if scenario planning in Futrli to trial multiple potential moves simultaneously. Evaluate your current position, asking if the campaigns and systems you have currently are the best options for your business. If not, simulate alternative options and scenarios. Maintain and improve what’s working and replace what’s inhibiting you.
No matter how unpromising a venture may seem, careful consideration could change your mind, with Futrli, test any scenarios without risk; there’s never any harm in investigating. The cash flow forecasts you make for your business will help you consider things Research when returns will be made and what the potential benefits of your investment will be.