Reason #8 Why You Should Do Business Projections
May 11, 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 eight.
Roger Scherping: So, my next one is, understanding the financial impact of your business decisions. And I’ll start with a story. I know a guy once who bought three franchises, three retail franchises. And he opened the first one, and I came to his store, and I looked at it, and I said, “Oh, this is really cool.” And I said, “How are you doing to know when it’s time to open the next one?” And he just looked at me and shrugged his shoulders. He had no idea. He was just going to wing it.
Steve Fredlund: I’ll just know when I know.
Roger: Yeah. And, so, to me that’s pretty scary. To make a big decision without the numbers to back it up.
Steve: And I think, sorry to interrupt. I keep interrupting you, but it’s so good. And I think, I think, you know, even if you have really good business intuition, and you can sort of, you know, historically you’ve been able to say, “I just kind of know when I know. I just kind of know.” If you’ve sort of been able to just sort of get away with that, if you will, all those years, you still might be successful. But I’d be willing to bet almost anything that you’re sub-optimal in your timing.
Steve: And so you might, you might still make money from that decision, but you’re very very likely not maximizing the success.
Listen to Roger’s previous reasons on our YouTube page.
You can hear the entire podcast here.