Reason #1 Why You Should Do Business Projections

Mar 16, 2021 by Roger Scherping

Roger recently appeared on the Small Small Business (SSB) podcast. Learn how SSB helps small businesses here.

Roger discussed 10 reasons why you should do business projections. Here’s reason number one.

Roger Scherping: And the first one comes from my experience working with troubled companies, and my first reason is that troubled companies need a plan. So I mentioned that I worked at all of these small companies and got them turned around. Well, there are a lot of companies that 2020 wasn’t very good for them, and they may not be in the position that they’d like to be in. And they need to do something.

The first place to get things fixed is like in my experience is to do a plan. What does it look like? Am I going to be out of business in six months? Let’s look into the future and let’s see what it looks like. Let’s figure out what the reality is, and then let’s get a plan together that will make us successful.

Like I said, companies are struggling today. That was the genesis for my creating ProjectionSmart, was troubled companies need a plan.

Steve Fredlund: I think it reminds me of the whole ostrich head in the sand kind of thing, right? I think a lot of us sort of, as I’ve talked to many people, business or otherwise, look at 2020 and just like, I just want to put my head in my hands, and bury my head and just wait for it to be over. Like, just be over. And now we come into 2021 and it’s not over. And people who are just sort of like waiting for it to be over, it’s not over. And I think you mentioned troubled companies, like hiding from the problems is not a solution. That’s just like, hope is not a good business strategy.

Roger: Exactly. It’s like, you don’t feel good, but you don’t want to go to the doctor because you’re afraid of what he might tell you.

Steve: Right. Right. OK, so if you’re in trouble, if your company’s in trouble, doing a projection is something that you need to do. Not just sort of hope and wish and pray that things change.

Roger: Or bury your head in the sand. Right.

Steve: Or just ignore it, yeah, and hope for the best. Yes.

You can listen to the entire podcast here