Utility Budget Forecasting for SME’s
However, whether you are just setting up your business, or have been in the game for a while, forecasting the future state of your utility finances can feel the same as trying to predict what the weather will be like on the first Tuesday of March next year; It is a complicated, tedious process because of the all the charges and the rates that are needed to be taken into account in order to form the bigger picture – and the bigger picture is where the magic happens.
With our help you can avoid feeling the pressure of a utility budget forecasting load weighing down on you. You can avoid the hassle, the stress, and the lingering sour taste fretting over utility budget forecasting can often leave you with. Being the energy boffins that we are, SwiftSwitch would love to carry this load for you! Our utility experts can help with all your utility forecast needs and concerns, allowing you to breathe easy.
SwiftSwitch will of course deal with all your utility budget forecasting affairs, however, below is some utility and non-utility based budget forecasting information we think will be of use to your business.
The Importance of Budget Forecasting
If you Focus on Creating a Budget Forecast
- It will enable you to get an idea of how fast your business will be able to grow – which will allow you to make internal progressions.
- Prospective investors will be more inclined to put money into your business if the risks and costs involved are presented to them in a more tangible way. It will also show that you are well organised and intent on ensuring the growth of your business.
- Having historical data at your disposal will allow you to look back on the market and watch for micro-trends and seasonal peaks. This will give you a better opportunity to save money – and will flash you the green light when risk factors are abated.
- You will be able to compile budgets for costs and fixed overheads.
How to Budget Forecast with Accuracy
Once you have gathered this information, you should calculate your estimated run rate. You can do this by looking at your historical data. If you are just starting a business these figures will not be so easy to come by – you will need to compile them by examining statistical data from your industry and by sourcing information about your competitors. Industry trends are generally a good road map to examine if you wish to progress on to reach your budgeting forecasts optimum destination- ‘real town’. This information will of course be bulked up with conjecture, but it can become realistic if you make sure to examine:
- Footfall and sales
- Repeat Sales