Business Planning and Forecasting in Small Businesses: Simon Finbery
Tags – Forecasting in Small Businesses
As a business owner, where should you be focusing your energy and concentration?
It’s a common question.
The early days of starting out a business can be chaotic. There’s so much to think about, implement and develop. It’s an emotional roller-coaster of excitement and sharp shots of anxiety.
Amid all this and with a growing to-do list, you can lose track of what’s a priority.
Write a Business Plan
By writing a business plan, you’re defining exactly what your organisation is today and what it intends to become tomorrow.
This coherence concerning the purpose of your business and your direction of travel is invaluable.
Here, you need to make sure that you also conduct a business forecast.
Business forecasting is an integral part of your business plan. As part of this, financial forecasting may be required for several reasons:
- If you need funding to start up or grow, then all lenders will assess your forecasts.
- Seeking out a potential business partner will be made all the easier with a set of robust financial forecasts that could help to persuade them to join your business.
- When you’re looking to sell your business, a prospective buyer will want reassurance that the business will continue to survive and 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 you feel that you need funding from a bank loan or another source, you already have the documents in place to go and visit a potential investor or lender, such as a Venture Capitalist, Angel Investor or Bank.
Seeking Professional Advice
To sort out your business plan and forecasting, working with a professional advisor is recommended.
They can help you to structure and present your business plan, and can also act as an independent sounding board, supporting you but also providing sensible challenges where appropriate.
In addition, this can ensure that all those difficult questions have been thoroughly considered before visiting a lender or potential investor.
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