Forecasting

  • How profitable will my business be in the future?

  • How can I show my bank manager my business is financially feasible?

  • I want to run a guesthouse, how will seasonality affect my cash flow?

  • How can I make my social enterprise sustainable after the initial grant subsidy?

  • Is there a way to monitor my business performance based on actual earnings?

  • Forecasting for a positive outcome

    Planning ahead is an everyday thing that keeps most of our lives on track.  Planning to meet up with friends fuels a good social life; leaving the house on time to get the kids to school assures a productive working day. Planning ahead financially has the same effect, if you have a reason to do it, the outcome is generally a positive one.

  • Financial Forecasting Icon

Financial forecasting (also referred to as producing financial projections) can be used as a tool in the following ways:

  • Use

    • To work out if your business idea is feasible
    • To help manage a healthy cash flow
    • To understand your profit margins
    • To produce a healthy set of accounts
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  • Outcome

    • Your business is profitable
    • Your business can sustain itself
    • Your business is able to grow
    • Your business will sell successfully

Projections are also useful to help a business meet a specific objective such as:

  • An ongoing tool to monitor your business performance
  • A one-off ‘snap shot’ of your business to apply for a grant application
  • To forecast where cash injections are needed to secure multiple funding bids

The reason a business needs to forecast also dictates how the figures need to be monitored over the short, medium or long term.

What does financial forecasting actually look like? 

As you may expect, the format of a financial projection will vary depending on its purpose.  That said, we do hope you like spreadsheets (!).  Relevant to your business type and sector, the team at Landsker can design and produce a bespoke forecasting system, capturing fine details to paint an accurate picture of income versus expenditure.  This includes essential outgoings such as rent, drawings (wages) and electricity needed to keep the business alive.

Details are calculated based on logical assumptions (guided by Landsker’s expertise and experience in various fields).  These include:

  • Individual income streams
  • Direct costs (materials and service provision)
  • General overheads
  • Staffing costs
  • Capital development
  • Funding sources
  • Marketing activity

Assumptions can also be programmed as ‘adjustable’, to take into account continual changes in elements such as seasonality, occupancy rates, stock holding requirements, VAT considerations and inflation.  The result is a user friendly forecasting tool that you can adjust and monitor as you wish, a fail-safe way to plan ahead that’s almost as good as a crystal ball.

Individual income streams

Forecasting Spreadsheet Icon Assumptions

General overheads

Forecasting Spreadsheet Overhead AssumptionsTab content goes here…

Staffing costs

Forecasting Spreadsheet Staffing

Funding sources

Forecasting Spreadsheet Funding

Capital development

Forecasting Spreadsheet Capital Costs

All of the above produces key financial reports, vital for securing funding or business partnerships including profit & loss, balance sheet and cash flow forecasts, plus analysis reports such as breakeven, sensitivity analysis and non-financial outputs.

From rookie to reality

It’s likely you know your business inside out, or have been through the logistics of launching a new idea a thousand times.  Transferring these insights and knowledge into hard facts and figures, either to impress funding bodies or simply give you the confidence to succeed, is where Landsker can assist.

We assess real needs and calculate factual outcomes.

Our in depth knowledge of the financial sector, plus direct relationships with funding bodies, can give you the kick-start you need.

Give us a call on 01994 240631 to understand how Landsker can help you.