When you run the numbers for the past, it helps you project future sales, costs, and profits. Since many of you are just getting started or in the first full year of business, you may not have t have any real history (YET) so here’s what you can do.
PEER FEEDBACK – Ask others in your industry who have businesses similar to you what numbers are typical in their business. Just be careful and don’t cross the line by asking for their trade secrets.
PROFESSIONAL ADVICE – Another place that you can find help is with professionals that work with businesses like yours. Business consultants and accountants are great sources especially if they specialize in your niche.
INDUSTRY ORGANIZATIONS – Don’t have a business relationship with either of the above? No prob! Check out your industry’s associations. Many have publications and other resources that they can point you to.
PUBLIC INFORMATION – And if all else fails, there’s always free. If you have the extra time, research Google or visit your public library.
Just curious…are your managing your business finances proactively? Or is this an area that you are ready to work on?