Working on your business forecasting for 2015? Here are three simple, but effective, tips to apply

Simangele Mzizi, Fsp Business, 28 Nov. 2014

Tags: forecasting, business forecasting, forecasting tips

It’s great that you want to start 2015 on a positive note. And that you’re not just talking about it, you’re putting in work by doing your business forecasting now.

But how do you ensure the few precious days you have left to work on your business planning are fruitful? How do you ensure, in the end, you have a good forecast on your hands?

It’s easy.

Apply these three simple, but effective tips as you work on your business forecasting for 2015.

Apply these three tips when doing your business forecasting for next year

#1: Start with the basics
Partner at Wellers Accountants, Stuart Crook, says your business plan is the common sense side of your business. It tells you if your idea makes sense and where you sit on the market.
Forecasting is how to deal with cashflow, Vat, PAYE etc.
So if, for example, you don’t take basics like these into account, you may see a big amount in your bank account and think you’re OK, explains Crook. But later on, when you have to pay Vat, you may find your cash balance looks a hell of a lot worse.
So make sure you account for all the basics in your forecast. This way, there will be no surprises later on.
#2: Know your market
According to, forecasting isn’t all about your business performance and predicting future performance only. But it also includes taking into account the market around you.
“You need to know your customer base and competition, inside out,” says the site.
This will help you build trust and long-lasting relationships with your customers. Looking at your competition will help you see how they’re doing and if you can draw lessons.
This means you have to conduct thorough research when doing your forecast to get a good picture.

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#3: Be realistic

This week, Stats South Africa said the country’s GDP grew by 1.4% in the third quarter of 2014.
While there’s some growth, the reality is our economy isn’t growing fast enough.
You need to take factors like these into account and be realistic about the situation SA’s in and how it could affect your business.
If you’re over optimistic and your figures don’t add up, people involved in your company will see through you and have doubts.
To ensure you have a good forecast on your hands, apply these tips.
PS: If you need a programme to use for your forecast, use Excel. If you’re not familiar with Excel or don’t know how to navigate through it, check out the Excel Training DVD 2014: Solutions to Your 35 Biggest Excel Finance Problems.

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