Forecasting is your small business’s secret weapon to plan revenue, expenses, and cash flow, keeping risks low and growth high. We are launching a series on forecasting, so make sure you check back regularly for the next installment. For now, let’s dive into the first two steps to get you started!
Start with Historical Data
Dig into 1-3 years of financials using tools like QuickBooks to uncover trends, like seasonal sales spikes or expense patterns. If you’re just starting out, no worries! Tap into industry benchmarks from IBISWorld to get a sense of your market’s norms. (Source) This data is your foundation for smart predictions.
Focus on Key Metrics
Keep an eye on the big players: revenue, cost of goods sold, operating expenses, and payroll, which can eat up 20-50% of your budget. (Source) Don’t skip employee benefits like telehealth, which boost retention and morale. Tracking these ensures you’re forecasting what matters most. If you can’t afford to offer your employees insurance (we get it!), you may want to check out what Exectras Membership includes.
How We Help
Exectras makes forecasting easier with cost-effective payment processing and benefits like Virtual Primary Care, keeping costs predictable. Use these steps to build a clear financial picture, setting your business up for success. Stay tuned for more tips to level up your forecasting game!