Reason #7 Why You Should Do Business Projections
May 04, 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 seven.
Roger Scherping: OK, my number seven is, see your financial future. So I love this story. My dad told me once, he said, decision making isn’t difficult. He said, what’s difficult is gathering information. He said, how difficult would it be for you to pick the right stock to purchase if I gave you a copy of next year’s Wall Street Journal?
Right? So imagine how much easier your decision making would be if you could look into the future. You’d be able to anticipate problems early on while they’re small and easily fixed rather than when they’re really big and intractable. Or you might see ahead that you need to increase your bank line of credit. Right? So you’re looking ahead and making decisions based on what you’re seeing.
In my case, I was the president once of a $20 million manufacturing company, and I had my own CFO. But I still did my own projections. Because I just can’t let go of this need to see the future and see what the future looks like.
Steve Fredlund: I love that. I love that idea of it’s about getting the information. The decisions – if you have the right information the decision is easy. That’s why I love, like this example of, hey we could, you know, go into two different product lines, two different new service lines. Oh my gosh, a hard decision! I’m staying up at night. I don’t know what to do. What should I do? What should I do? Spend that time putting the numbers behind it and projecting out different scenarios for each one, and the decision, in most cases, becomes pretty easy.
Roger Scherping: Yes.
Listen to Roger’s previous reasons on our YouTube page.
You can hear the entire podcast here.