Business forecasting should form an integral part of your business plan.
Business planning and financial forecasting may be required for a number of reasons:
- FUNDING – if you need funding to start up or grow then all lenders will assess your forecasts.
- LOOKING FOR A BUSINESS PARTNER – robust financial forecasts will show them to join you.
- SELLING YOUR BUSINESS – a prospective buyer will want reassurance that the business will continue and has potential to make them money.
The forecasts you produce will be ongoing and changeable according to circumstances and should be a guide to running your business. So, if in the future you feel that you need funding from a bank loan or another source, you already have the documents/plans in place to go and see these people.
When creating a financial forecast, it may not necessarily be done in sequence; there may be an element of ‘jumping around’ between the different sections as the results of one section may cause change to be made to another section. In fact, you’ll probably find each section will need revising a couple of times until the overall outcome is acceptable to you.
Our next few blogs will take you through some of the elements of financial forecasting.
But if you need our help with your forecasting then pick up the phone and give us a call on 01207 509871.
Sharron will talk to you with plain English. She won’t bamboozle you with accountancy! We’re here to help so if you’re looking for funding for your business or you just feel like you need to get a better grip on your business finances then give us a call.