Are You on Track?
It won’t be long until we’re at the mid-point of 2023, so I want to check-in to see if you are aligned and where you want to be. Specifically:
- How is your 6+6 Forecast going (your 6 months of actuals and 6 months of forecast)?
- Are you on track to hit your half-year targets? By how much?
- Are you below target? What are you planning to do to get back on track?
Your response will fall into one of these:
1). You won’t have this information to hand, nor even know where to start, because you haven’t actually started…
2). You will know where to go to get the information from, will quickly review it, then bury it away again until November and hope for the best…
3). You will know your current position. You’ll either know there aren’t any issues because the business hasn’t alerted you to any, or, you may be behind, but you’re aware of this and are taking action to catch up…
Now, ask your Team the same questions…
I’m tempted to bet my mortgage that it’s unlikely your team members have been able to answer any of these questions.
Whatever category your response falls into, it’s not too late to start getting clarity across your entire team on how far on or off target your business is by implementing a ROLLING 12 Month Forecast Plan:
- 3 + 9 Forecast shows 3 months of actuals and 9 months of forecast.
- 6 + 6 Forecast shows 6 months of actuals and 6 months of forecast.
- 9 + 3 Forecast shows 9 months of actuals and 3 months of forecast.
At each month end its good practice to track your performance against the forecast to see if you’re on track.
As the year progresses, the forecast for the year should become more accurate the more it comprises actual months and fewer forecast months.
** Please don’t leave this to your accountant, or assume they are doing it! **
By making this routine, everyone across your business will be united and focussed on the end goal, and you’ll never miss target – you’ll just run out of month!
Any questions, you know where I am.
BW,
Martin
Martin Norbury
Investor | Business Mentor at Advocate | Author of I don’t work Fridays
Image by Leopictures from Pixabay