Reason #2 Why You Should Do Business Projections
Mar 23, 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 two.
Roger Scherping: The second reason I think people should do projections is for peace of mind. And I hear this a lot from our customers. I hear from people who are considering starting a business, and they want to do it, but they can’t answer questions like, Am I going to be able to make money at this? Will I be able to pay myself what I need to? And because they can’t answer those questions, they just cross their fingers and they sort of take the leap. And they do it with a lot of fear and uncertainty when they do that.
Or if you’re an existing business you might be uneasy not knowing what lies ahead. Maybe you’re uneasy because you don’t know, the path that you’re on right now, you’re not sure where that’s taking you. So you’re not sure where you’re going to be in the next 12 months.
So I think a projection gives people a peace of mind. You understand the numbers of your business. You can relax because you can see 12 or 24 months out. You can see, OK, this is what I think is going to happen. It’s no guarantee, of course, but it’s a plan, and it’s a way to start going through it. You have a clear mind then, and you can put your worries behind you and execute based on this vision that you’ve created of the future.
Steve Fredlund: I love that. So on the first two reasons, you’ve already hit on what so many people are struggling with, especially the small, small businesses. Many are troubled, maybe they weren’t a year ago, but now with COVID they’re now troubled, and they’re lacking peace. And so we’re 2-for-2 for a lot of our folks.
Listen to Roger’s previous reasons on our YouTube page.
You can hear the entire podcast here.