There is a significant lag in most companies between when the business owner (or their leadership team) sees financial results they don’t like and when they actually make changes in the business to get results back on track.
The business owner is executing their strategy and waiting for the financial statements to come out so they can see the financial results. When the results are not good they scratch their heads, and wonder what the problem is.
Oftentimes they conclude that something is just weird in the numbers that month and say, “These numbers don’t make sense. Let’s see what the numbers look like next month.”
Another month goes by and the actual results come out and the results tell a similar story.
Management still doesn’t quite believe the numbers. So, they hesitate to make any changes in the strategy or tactics in the field.
Finally, a couple more months go by and the owner is forced to admit that changes are needed in the strategy (or in the execution of the strategy) in order to have an impact on results.
Three to six months have now gone by and thousands of dollars have go down the drain.
The View Through the Financial Windshield Can Avoid This Costly Mistake
A well designed financial forecast provides you the view of what is about to happen. It delivers feedback on results before they even happen.
A reliable financial forecast provides the view through the financial windshield of your business.
It helps you get to your financial destination safely and on time. 😊
A Quick Start Guide to Financial Forecasting: Discover the Secret to Driving Growth, Profitability, and Cash Flow Higher provides a straightforward, easy-to-understand guide to one of the most powerful financial tools in business: a reliable financial forecast. It will transform the financial future of your company and help you make better, faster, smarter business decisions. Order the book at Amazon. Or learn more here.