After a week of analyzing how we did in 2016 we were ready to set our business projections for 2016. Now we can determine what we can do better and incorporate the appropriate forecasting methods. We now have it all down on paper and on a clearly defined visual.
Establishing future growth and gross income business projections is something I have found to be essential to my business growth. It is with this forecasting method that I began to aggressively pursue my annual earning goals. But more than that I was able to have a clear panoramic view of my business. This business-forecasting map serves as a compass in the navigation of business development. Without such a comparable detailed map it is impossible to reach measurable and outstanding goals.
1) Business projection serves as complete and detailed navigation system. Although it may seem like just predictions and guesses projections are gauged on past, present and future assumptions. Once the previous year’s assessments are calculated you begin with a desired gross revenue figure.
This begins the objectives that are categorized and broken-down and aimed towards a precise target. Use one main target, break it down into four action steps to reach that target, and define the tasks that each of those four actions will need to achieve the primary target.
This appears to be a daunting task because there are several steps that need to be implemented in order to obtain an adequate view of the forecast.
2) But once this is completed and implementation takes force your business will never be the same again. It is an continuous analytical overview of your businesses climate. There are two schools of thought in small business owners. There those that believe that projections are worthless because it is impossible to predict the future or that projections are methods to make radical and optimistic assumptions that are not grounded in reality (Ken Kaufman, Business Insider). Then there are others who believe that engaging in the planning of your business’ financial projections is absolutely the most important practice that you can perform in ensuring the success of your business (Entrepreneur.com)
3) There is so much that you invest into your business in time, money and energy and all without taking the steps to analyze your results, incorporate fresh new strategies and forecast your company’s financial future. Taking stock of where your company currently is and establishing clear, concise new prospective will subsequently set your business for a positive future.
Would you ever set out to go to a place without an address, or a GPS to get you there? Or would you ever put money in the bank without ever checking your balance? Take note that you cannot effectively run your businesses without business projections. You may be leaking money out without ever knowing why you are not achieving success. Although this can be implemented at any season of your business it is best to being your business projections fresh every New Year.
Your partner in success,