Forecast revenue and expenses
Forecasting is just making an educated guess about next quarter's money so it doesn't surprise you. A simple revenue and expense forecast lets you plan hires, purchases, and slow seasons in advance.
Do this
- Use recent months to project the next 3-6 months of revenue.
- List expected expenses, including any planned new ones.
- Compare projected income to projected costs each month.
- Update the forecast monthly as real numbers come in.
Simple Forecast Checklist
- Base revenue on recent trends + known jobs
- Adjust for seasonality (busy/slow months)
- List fixed and planned new expenses
- Project profit per month for 3-6 months
- Revise the forecast monthly with actuals
