August 16, 2018

Is your sales forecast achievable ?

They say anything is possible, but at what cost? I have been working on my forecasts for the coming year and having designed my ideal position, I then re-visited the figures to make sure they were practical.

 The good news is that they are, but only after they had been tweaked and I accepted that, in order to be as productive as I want to be, I will be getting extra help in certain areas. As part of this plan, we have compared this year to last to see where we need to do things differently. We have prioritised our efforts and pencilled in dates for the next twelve months.

forecastWhen I say we, I mean my team and I. We did spot that I appeared to be taking extra holiday during one month – I wondered why I was getting so much in the coming year! We also worked together on where to focus and decided on actions to get certain things moving as we knew there would be some quick wins as well as certain areas that would take longer to set up.

So much for my plans, how are yours going? Will you need an investor to fund the next stage of growth? Are you looking to stay the same size but work more efficiently? Do you know where you want to/expect to be by Christmas? Will you have sufficient funds available to finance your tax bill? It is all very well starting with sales revenue, but you also need to focus on the costs and the cash flow.

 Having decided on your ideal revenue, work out what the related costs are, when bills will need to be paid, and when you expect receipts from your revenue. Then add in the VAT and tax bills and if you are a sole trader or partnership, the cash you want to draw from the business. If you are a shareholder in a limited company, consider what dividends it will be able to pay during the year. You are well on your way to having your complete financial plan.

The final stage is to decide how and how often you are going to monitor it. There is little point in putting lots of effort into a detailed plan that sits inside your computer till the end of the year. Don’t put the time in if you are not going to use it. If you are happy to rely on good luck, may I wish you all the best.

 Book coverIf you need help with your planning, Wellington Consulting are happy to work with you to create a plan. You can even come over to our offices to avoid the distractions in yours.

 Let me know whether you use luck or judgement for your plans.

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