This week I ran a FREE masterclass around creating projections. My aim is never to teach anyone to be an accountant and I’m not talking about creating super complicated cash flow forecasts. I’m talking about a really simple profit and loss sheet.
Leave all the jargon and brain-busting to your accountant, that’s after all what you pay them for but please do brush up on a basic understanding of the numbers in your business. It will transform everything!! I promise you, it doesn’t have to be scary. Even if you think you are “rubbish at maths”, I know you can do this!
So in order to begin with any kind of projections, you need to have some goals in mind but why should you set financial goals?
- Motivation – By having some realistic goals it will keep you motivated when times get tough ( because as business owners, we know they will).
- Clarity – Once you know your goals, you can get crystal clear on what you want to do with your hard-earned cash!!
- The plan — You can plan out the income-generating steps you need to take in order to smash out your financial goals.
But my business is ticking over just fine, why is it so important to create a set of projections?
- To check if your business is viable and if you can scale. Whether it be a product or a service you need to know that it can work
- To explore different income streams
- To help set financial goals
- To make sure your financial goals are achievable
- To understand the costs involved in your business
- To ensure your business will be profitable
- To identify peaks and downtime
- To keep you motivated!!
I mentioned earlier about your goals being achievable. I’m not asking you to aim low. I want you to be a success. You can absolutely build the business of your dreams but be realistic about your goals. Otherwise, you’re setting yourself up for failure, and well that’s not going to do anything for your confidence, is it?
With my clients, we focus on PROFIT. Who cares if you’re turning over six figures if there isn’t some juicy profit in there for you.
If you need any help with projections – drop me an email firstname.lastname@example.org and we can chat.