FORECASTING and BUDGETING
What are your goals for your business this year? Next year? How will these goals generate revenue? How much revenue?
Maybe you’re adding a new service or a new line of products. Forecasting sales and then reviewing that forecast on a periodic basis can help tell you how well an aspect of your business is performing. It can help you analyze your business and make informed decisions on the best way to move forward.
Budgeting is an equally important aspect and a crucial element of the business plan and in forecasting. Budgeting helps plan for future expenditures so you know how much revenue you need to generate to cover them. It’s also helpful to review on a periodic basis so you know if you’re business is turning into a spending diva or if you’re running right on track.
(These technically do fall under the bookkeeping umbrella but I wanted to put them with the business plan as I feel they go hand-in-hand.)