EPISODE 84 : Financial Forecasting Confidently

I know you've heard the term, I know you know it's something you really should be doing as a business owner, so why haven't you done so yet?  In my experience a lot of it has to do with confidence, a lot to do with time and a hell of a lot to do with just not seeing any immediate purpose for it because you are busy with marketing, making sales and doing business.

Well my friend, now is the time to make time.  There is such volatility in the market at the moment, consumer habits are changing and we are being forced to think differently.  So why not start the change with a financial forecast to help you shape the future.

In this episode my conversation is centred around the foundations of financial forecasting and what benefits it can have on your business.  How understanding various aspects of how your business operates, can make this process not only easier for you, but more effective.  I talk fixed and variable components, pricing impact and controls, stress testing or scenario testing your business, being flexible and realistic along with importance of re-evaluating your assumptions for them to stay relevant.

If you don't already ... you should. Take a listen. A x

 

Topics of interest throughout the episode;

• Starting with what you know [4:45]
• Fixed and Variable elements of your business [4:45]
• A chat on Fixed [5:34]
• Identifying drivers of change [6:18]
• A chat on Variable [6:34]
• Pricing models [7:50]
• Stress testing or Scenario testing your business [10:07]
• The fun part [11:05]
• Forecasting integrity [11:50]
• Optimistic forecasting [12:22]
• Measurement [13:18]
• Forecasting for significant shifts [16:07]

The key take aways from this episode;

• Understand the key drivers of your numbers
• Identify what is fixed and variable
• Use what information you have available to you to understand business trends
• Stress test scenarios in your business to see what makes the most sense
• Be realistic and flexible in your approach to your forecast
• Commit to the strategy

Relevant links as mentioned throughout;

• Small Business Cashflow Course www.amybajada.com.au/waitlist
• Book a Discovery Call www.amybajada.com.au/discoverycall
• Sign up to my community www.amybajada.com.au/signup