72. 📋10 Steps to Start your Business Forecast 📋

Nov 25, 2024

At the end of quarter three our Success Strategy Sessions focussed on business forecasting. To create a bespoke business roadmap for 2025 and also further project for a three and five year prospect.

Success Strategy Sessions are a one to one deep dive into your business. We look a goals, ACTion Plan and a Roadmap to your success.

A business forecast typically includes a projection of a company's future performance based on past data, market trends, and other relevant factors.

Ten steps we share to create your business forecast:

💫 Sales Forecast

Predictions about future sales revenue, often broken down by product, service, customer segment, or geographic region.

💫 Expense Forecast

Estimates of future expenses including operating costs, marketing expenses, overhead costs, etc. 

💫 Profit Forecast

Anticipated profits based on the sales and expense forecasts.

💫 Cash Flow Forecast

Projection of the cash coming in and going out of the business over a specific period, helping to ensure there is enough cash to cover expenses.

💫 Market Trends

Analysis of industry trends and market conditions that could impact the business operations and financial performance. 

💫 Economic Indicators 

Consideration of broader economic factors such as inflation rates, interest rates, and exchange rates that could affect the business.

💫 SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Identification of internal strengths and weaknesses, as well as external opportunities and threats that could impact the business forecast.

💫 Risk Assessment

Evaluation of potential risks and uncertainties that could impact the forecasted results, along with risk mitigation strategies.

💫 Assumptions

Key assumptions underlying the forecast, such as growth rates, pricing strategies, market share expectations, etc.

💫 Scenario Analysis

Consideration of different scenarios and their potential impact on the business forecast, helping to prepare for various outcomes.

By considering these components and factors in a business forecast, companies can make informed decisions and develop strategic plans to achieve their financial goals.

Thank you for reading, if this was useful please ❤️ and if it could help someone in your network, please share it with them.

Thank you ~ Diana x