Accurately forecasting sales and revenue is the dream of any business owner in the world.
For one, forecasting unlocks the ability to spend smarter. You’ll know where and when to put focus on new or innovative projects (such as marketing), and forecasting can greatly improve hiring decisions.
But forecasting, for all its benefits, isn’t necessarily an easy task.
For one, forecasting is not always accurate, especially for seasonal businesses. It can be even more inaccurate and consequently damaging if your business lacks clear cash flow reporting dashboards.
So, how can you leverage the benefits of forecasting while being as accurate as possible?
A critical piece to getting more accurate forecasting for your small business is practicing better resource planning and management. It’s not just about the work coming in, but how successfully you are able to complete projects.
By leveraging comprehensive resource planning, businesses are better able to forecast revenue and profitability ACCURATELY. We’ll share tips for what to consider when resource planning, how to get started, and tools you can use to better manage your resources.
Resource planning is often the first step in project management. Essentially, resource planning identifies all the necessary resources to complete a project. Resources include team members (roles and responsibilities) as well as tools (software, hardware, facilities, etc.). Resource planning in project management involves putting these items into a schedule.
What is my timeline?
If you’re a services organization, how many employees do you have?
What are the rates/salaries involved?
How long will it take to achieve the individual milestones?
Knowing exactly the who, what, and when of your resources removes any guessing when it comes to scaling, i.e. accurate resource planning begets accurate forecasting.
"Resource planning in project management will help you avoid making unnecessary decisions that might cost you margin on projects. Plus, you’ll be able to better stick to deadlines or be more flexible for clients if needed."
And importantly, effective resource planning can create a better connection between sales and project management. This will help streamline the handoff between the two as well.
Take the steps needed to strengthen the connection between your sales and project management teams by finding a resource planning and management tool that seamlessly integrates with both. Make sure to look for self-driving features that will save you and your team time on mind-numbing admin. With truly comprehensive software in place, you should be able to increase your visibility and provide forecasting that’s more accurate than ever before.
Curious about resource planning and forecasting in PSOhub! Try it FREE.