Forecasting is a process where you estimate the amount of revenue and cost your business will generate in the coming months and years. As an entrepreneur, creating a forecast can feel overwhelming. After all, if it's going to be the roadmap for the success of your business, it had better be as accurate as possible, right?
Luckily, forecasting isn’t about predicting the future with perfect accuracy—that’s impossible! Instead, the goal is to get a clear picture of your business’s financial health so you can plan effectively. A well-thought-out forecast helps you anticipate cash flow needs, secure funding, and make informed decisions to keep your business on track. It's flexible enough to examine multiple scenarios to prepare you for both difficulties and success.
Remember, anyone can create a forecast—regardless of your level of experience. It’s all about being practical, investigating relevant factors, and making educated estimates. You don't have to worry if those estimates are nothing more than guesses at this point because updating your LivePlan forecast is easy.
Finding your way around LivePlan's Forecast
You can view instructions for each forecast page, such as revenue, personnel, or expenses, by clicking on the instructions icon above your forecast charts, as shown below:
This will open a side panel with helpful instructions and links for additional information:
Close this panel by clicking the instructions icon, near the top-right of your window:
You can adjust forecast options, such as forecast length, start date, level of monthly detail, and more, in the Options menu in the left sidebar.
The articles below will show you how to complete each section of the LivePlan forecast and understand the standard financial statements automatically created from your forecast.
Forecast pages:
The following articles cover the various pages available in your LivePlan Forecast.