It’s business planning not accounting. Your projections, although they look like accounting statements, are just projections. They are always going to be off one way or another, and their purpose isn’t guessing the future exactly right, but rather setting down expectations and connecting the links between spending and revenue.Read More
The financial forecast is the heart of any successful strategic advising relationship. Many people falsely assume that reporting is the necessary bit, but the forecast is what provides the roadmap and the basis for the advising.Read More
A well-built structure relies on a solid foundation. This is obvious. What might not be as obvious is that a well-built financial forecast also relies on a solid foundation. What is the foundation of the financial forecast? Let’s start by examining what it is not.
Summer break is ending, and I can feel it.
With three weeks remaining before the beginning of a new school year, there is a need to get it all in! There were big expectations for summer: night time bike rides and star gazing, s’mores, family reading, and pool time. Because we live in the heart of the Willamette Valley in Oregon, trips to the coast and to the mountains are a requirement.
So for me, what makes a sales forecast credible?
It starts with product market fit. I want to understand the story of the need, and not necessarily big numbers, but who needs this and why.
That’s the beginning.Read More
New entrepreneurs frequently ask me for advice about forecasting their sales. These entrepreneurs are always optimistic about the future of their new company, but when it comes to talking about the details, most aren’t sure how to predict how much money they’re going to make.Read More
Today, I want to introduce a new approach to business planning: Lean Planning.
Lean Planning replaces lengthy business plans with a planning process that focuses on increasing your chances of success in business.Read More
Forecasting is usually easier when you break your forecast down into components. As an example, consider a forecast that simply projects $1,000 in sales for the month, compared to one that projects 100 units at $10 each for the month.