Forecasting is an entrepreneur’s best attempt to map the future financial performance of their business. Done well, the financials are a powerful tool; but they are as much art as science—especially when you’re raising cash from investors who are looking for “explosive and credible” growth or you’re preparing to develop operational and staffing plans that will position your business for long-term success.
Building credible, believable and usable growth projections for your business will take time, but the benefits are numerous. Financial forecasting will empower you to determine exactly what it takes for your company to succeed, including a means of precisely gauging the organization’s overall financial health, a way to accurately determine funding needs and an opportunity to create a financial “game plan” for you, your team and your investors that aligns with your company’s goals.
Through forecasting, you’ll be able to tell your company’s story, convince investors that your business is worthy of investment, guide management and better understand what impacts success and failure.
While no two financial forecasts will look alike and there is no single “right” way to assemble yours, there are specific metrics that are necessary to include. Not sure where to get started? We’re here to help.
Start assembling, or updating, your financial forecast with insights from my Startup Scaleup presentation—“The Fine Art Of Financial Forecasting.” This presentation will guide you through key considerations related to building a financial framework that is both compelling and credible, so you can attract investors/lenders without losing touch with reality.