Some of you out there love a good old budget the others perhaps a little more reactive, living the pay cheque to pay cheque mentality.

Both approaches work, but the best is a balance between impulse and forecasting.

3 Things to Highlight:

1. Forecasts work, but do not waste your time planning out 12 months. Break the forecast into ‘micro-years’ within a year. Start with a 90 day forecasts, these forecasts need to include tax planning, expansion strategies and compliance costs.

2. Build your forecasts backward. Don’t start with sales, start with fixed costs. Expenses are predictable, this builds the baseline for sales targets. You need to sell more than you spend so its really important to capture all costs first.

3. Factor in the unexpected. Allow for flexibility in your forecasts, have a plan if the sales aren’t achieved, what costs are variable and what are fixed. How much flexibility has this forecast got. Remember the forecast is there to give direction.

Plan for both positive and negative outcomes, the point of a forecast is not to only accept the ideal outcome, this is the opportunity to be real about your business, its position and overall plan.

If you would like to learn more on how on forecast your budget, contact us below and we can arrange a meeting.

Nate Kellock is a renowned creator of engaging audio/visual programs. His reassuring persona and ability to create thought-provoking content results in a spontaneous and unique show for viewers and listeners alike.

As the host of numerous podcasts, videos and live events, Nate carefully crafts an array of compelling content through his extensive experience within the entertainment industry and knowledge of current industry trends.