Utility Budget Forecasting for SME’s

Utility Budget forecasting should be of paramount importance to anyone wishing to run a successful business.

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 are just starting up your business, you do not need to spend too much time fretting over the accuracy of your initial budget forecast – these figures can be amended after your first few months. It is far more important that you produce realistic figures.

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.
Remember, in this game not a lot of good can come from embellishing your estimations to make them correlate with your desires. Realism is the key to accurate budget forecasting. It is also the key to success. Planning for the best, the worst, and the acceptable, will help you to be prepared for all eventualities. Think of budget forecasting as a safety raft – you will be able to make adjustments and ensure that if the worst were to happen, your business would have something to stop it from drifting off into the eerily dark and disheartening ‘out of business’ void.

How to Budget Forecast with Accuracy

You will need to begin by examining your expenses. You will have to take into account rent, bills, marketing costs, staff salaries, technical equipment, and operational costs. You will also need to account for variables, such as: labour costs and manufacturing costs.

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
  • Pricing

How SwiftSwitch can help

At SwiftSwitch our team of experts are always keen and ready to help your business thrive. We have a highly skilled and knowledgeable team that will aid you with your utility budget reporting and cost consumption. We will provide you with any information you may need, take care of the complex utility budgeting process, and discuss your future plans and costs too. With SwiftSwitch you can rest assured that business is in safe hands.

We would love to hear from you. If you want to save money, time and hassle on your utilities, get in touch and have a chat with one of our energy experts.

You can call us on 020 7701 5189 or email us at hello@swiftswitch.co.uk