For example, you are hopefully forecasting and budgeting for future performance. If you are not…you should be. Good business doesn’t happen by accident. By using trends from past performance they can be projected into the future statistically, and revised as needed to account for external and internal change factors.
At Universal, we set an initial budget for the coming year starting in October, with three quarters of data for the current year and previous year data. We meet again December to finalize the budget for the coming year. We then meet quarterly to review how we performed compared to budget, compared to previous quarters, and compared to performance indicators for the same quarter the previous year. We analyze the contributing factors to our success or failure to exceed, meet, or not meet our budget, and adjust our plan accordingly and forecast for the coming quarter.
These budgets and forecasts are extremely important management tools that help us make better business decisions more quickly, and to maximize our ability to plan, implement and execute to goal.
However, there is another POWERFUL way to improve the validity and certainty of your forecast that BizBench can help you achieve. Don’t just create your forecast benchmarked against internal historical data…now you can also benchmark your forecast against historical external industry-specific data.
Wouldn’t it be important to know where your forecast places you in 51 key performance indicators against the same-sized businesses in your specific industry nationwide? You can see before setting your forecast in stone where adjustments can/should be made based on industry standards and trends. You may be aiming far too low. You may be aiming unrealistically too high. Benchmarking your forecast against industry data will give you one more powerful tool to give you the confidence that your your forecast is more likely spot on!
BizBench allows you to use this technique on and annual basis as well as quarter by quarter using 12 month rolling actuals.
Call us today at 801-506-7462 to learn more about how to use BizBench to enhance your performance analysis of historical data, as well as how to improve the precision and accuracy of your business forecasts. Forecast with greater CONFIDENCE!