If you want to know how your business compares to the competition, you can find your answer in industry benchmarks. Benchmarks are industry standards, or guidelines, for key financial metrics. Basically, they represent the average of key numbers collected from many different businesses and then sorted by industry.Read More
A strong financial forecast is at the heart of any successful Strategic Advising relationship. Many people assume that reporting is the most important, but the forecast provides the roadmap, and therefore the basis for advisory services.
It’s the question I get asked the most by accountants who are thinking about branching into Strategic Advising services: “I do budgeting already. What’s the difference between a budget and a financial forecast?"
The answer is both simple and complex, and has a lot to do with the real value of advisory services, which is aiding small business growth.Read More
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
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