Do you pay attention to the bright and sunny days and the cold, dark storm clouds brewing? Do you risk going out without checking? Do you do that with your business?
You probably heard it when you first thought about starting your business, “the lack of planning and control of financial resources is the top reason for the failure of many small businesses.” You owe it to yourself to develop a barometer to measure the potential success of your business.
The words planning, budgeting, and forecasting, or their derivatives, ought to be staples in your business vocabulary.
Financial reports, the Profit and Loss (Income Statement), Balance Sheet and Cash Flow Statement that are best created monthly, are indispensable for finance managers to produce budgets and forecasts. An added benefit, they are the radar that finds and isolates trends both good and not so good, allowing you to respond quicker and make mid-course corrections to your business’s advantage, to weather the times.