Forecasting Your Business Growth for 2019
The goal of any business is to grow and become profitable. How do you do that? By predicting the future. No, this doesn’t mean sitting with a fortune-teller, but rather by simple analysis. When you started your business, you had a good idea of what the markets looked like, and the type of business climate you were operating in.
Business forecasting takes this a step further and allows you to predict what the market could look like in the next 3-5 years. By analysing, you get to understand what areas of your business may need expansion.
The importance of business forecasting
If the weather forecast warns of a storm, we take it very seriously. We know how to dress, and whether or not to stay indoors. The same logic applies to business forecasting. You’re able to know whether you should be expanding operations, and what your financial future looks like.
This is usually a daunting task, especially for small businesses, but it shouldn’t be. Experts will tell you that business growth can be vital. Else, you won’t attract new customers, and if your business is not innovative or keeping up with market trends, you could lose your loyal customer base.
Business growth in 2019 is very important, especially with the digital evolution. To be successful and remain relevant, you need to grow to survive. However, it’s not just about looking into the future, but also about being provided with an overview of what your current status is. You have the chance to identify risks and be proactive in finding a solution.
Forecasting allows you to take stock of the current business goals that were set when you started out. An evaluation is important. Now, you get to determine if these goals are realistic, or if you need to adjust targets and objectives. Are you starting to understand the benefits of business forecasting?
Techniques used for forecasting
For effective business forecasting, you need to ensure you’re using the correct methods. The six common methods include:
Bottom-up method
This is when various departments analyse their own respective data and analytics, to determine how their departments will grow. Upper-level management will then collate all information received and make a decision. This is usually the method used in medium-sized to large companies. The data is extremely detailed, and includes budget projections, talent expansion, and sales forecasting.
Large businesses usually use this method because the data is quite accurate and involved input from every department. It uses specialised knowledge to determine where the business may need improvement and allows department heads to take ownership of their respective functions. This way, your staff will have a deeper understanding of how the business is run and are more willing to contribute to company growth.
Top-down method
Basically, the reverse of the bottom-up method. The top-down technique analyses the organisation’s data before looking at individual functions. Top levels of management are more involved in this process, and the information is usually communicated after proper analysis has been done. Respective departments will review the data and implement whatever changes are needed.
This method is fairly simple, as fewer people are involved. Data can be analysed faster, and solutions implemented before they become a huge risk.
Historical method
This means taking a look at your past, to predict where you’re heading. Browse through the past year’s sales report, take a look at how the market performed then, to give you an idea as to what the rest of the year will look like. By looking at the data, you’ll be able to see if there were recurring trends, to understand how your business performed during this period.
You could also take a look at how some businesses in your field performed during this same period. This will provide you with insight into how well your product performed during the recurring trends.
Deductive method
Put on your detective hat, because you’ll be doing plenty of investigation. This technique involves observation and subjective evaluation. You’ll need to critically analyse your history, to determine what needs to be improved in order to move forward. This method basically combines past events and latest developments.
You can evaluate your business, and take a hard look at the current year, and the years that were. Again, if there were any shortcomings, you can be proactive in finding solutions and prevent similar shortcomings in the future.
Joint opinion method
The police and government would usually have a task-force that has been assembled to help deal with certain challenges. Similarly, this method uses the opinion of various experts. A business would have a committee that deals solely with business forecasting. Their job is to analyse all data and provide you with their insights.
This is helpful, as it’s a collaboration between those who have a deeper understanding of your business, and can provide insightful projections on where to go next.
Scientific business forecasting method
This method should only be used if you have an expert on analytics, statistics, and barometers. It uses plenty of mathematical processes, and if this is not your strong point, consider hiring an expert.
Experts in this field will look at past statistical data, and modify that in the light of changed present conditions. The result is an accurate conclusion that will help you predict the future.
VoIP services to help you grow your business
When your business grows, it needs to include communication systems that will help with expansions. Instead of waiting around for various phone lines to be installed, it’s time to enjoy the benefits of the digital revolution.
VoIP services have helped many businesses expand seamlessly into the 21st century, and continue to connect businesses with their clients, without interruption. The following tools will help with business growth:
Not in the office? Well, your clients will still be able to reach you on your mobile device, with call forwarding/diverting services. Calls will automatically divert to your mobile device without your clients knowing. This way, you’re always accessible.
There are days where you’ll be super busy, especially if you’re in the process of expansion. With customisable voicemail features, make sure your clients can always get in touch with you. Even better, the voicemail-to-email feature will notify you if you’ve missed an important call.
With the implementation of tone-driven menus, you’re able to connect customers to the relevant departments instantly. If they’re busy, the switchboard will take a message, and employees will be notified via email.
Virtel UK offers VoIP services that are flexible and inexpensive. Installation is quick and easy, without interruption. We’ll ensure you’re connected to your customers at all times.