Can you see through the swirling mystery inside the crystal ball? Interpret the pattern of tea leaves? Maybe you have mystical powers handed down by your clairvoyant grandmother? Are you the victim of a secret government project that left you able to see the future? (Really? That’s weird.)
As unbelievable as it seems, I can tell your future.
I don’t deal in predicting who will be the love of your life. I won’t be able to tell you the winning lottery numbers. What I can do is help you accurately forecast your business critical numbers like revenue, profit, expenses and cash.
Let’s cut to the end of the story and I’ll tell you the dark secret to my future vision ability, in convenient bulleted list format.
- Measure and Track. All top segments of the business are measured and tracked. For example, how many sales leads per day? Product distribution as a percentage of sales? Top producers? Expenses? Cash on hand?
- Create a budget. Take all your measures and begin to make a budget. What can I expect to sell, how much will it cost to run my business, and what does my profitability and cash flow look like?
- Schedule a time to look at the budget vs. actual regularly. Take a look at the numbers and see how close you are to budget. Drill down if things don’t match. Revise your budget if things have changed. Make changes to your operations based on what you see.
- Repeat. Do this over and over. Hire somebody to do it for you if you don’t have the time.
Exciting? No. Effective? Yes.
Companies that take the time to measure performance and hold it against a benchmark have the ability to see the future. Why don’t more companies do this? Well, it’s hard to be disciplined and budgets are boring. You know what’s worse than having to track metrics and looking at boring budgets? Negative cash-flow and bankruptcy.
Getting your predictive analytics system up and running can be a daunting challenge. I can help. Let’s get started.