Money Forecasting: 3 Ways to Plan for Both the Low and High of Predicting IncomeAug 22, 2023
As business owners, it can sometimes feel like you are being blown around like a ship facing gale force winds on the sea. It can be overwhelming to realize the stability for your finances can come from forecasting or predicting your income, but most entrepreneurs have never been taught how to make predictions accurately, if at all. Let's explore 3 ways to plan...
1.) Change Your Thinking to 'Make Hay while the Sun is Shining'
Doing business while clients or sales are most available is one strategy for a plan or prediction to be more stable.
Our incoming funds can go up and down with lows and highs just like the weather so being prepared is important to keep the stress down.
Taking advantage of the times there is more money available to be made helps alleviate the unpredictable rainy days.
2.) Controlling What You Can
Planning for the sunshine of money in your business weather report can feel intense at first. This is normal.
You can control when you stash the cash so that you can make the sun shine when you need to. Some people call this a rainy day fund.
Start by making short term predictions or estimates of what your business will be taking in financially. Think about the weather report on the news.
3.) Practicing in pencil
Creating a business weather report for money takes practice so keep things written in pencil instead of stone.
There will be times you get it wrong just like the weatherman on the news. Keep going because the more you practice, the more you will see patterns.
Control in your business comes from keeping things simple and paying attention.
Forecasting your finances may feel like a mythical creature, but learning and practicing predicting your incoming funds can be a simple process if you make a plan to follow to make better decisions with your money.
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