As we’ve entered into 2024, following on from the busy festive season, many businesses will take this downtime to look towards what the future holds for 2024 in terms of budgeting and financial investments. Forecasting finances is an integral part of internal planning and an area in which ETC Finance specialises.
With articles coming through from the morning advertiser, urging pubs to strike energy deals whilst the costs are low, there is a real urgency to get these plans in progress. Especially in hospitality, the role of accurate forecasting is amplified. Seasonal fluctuations, changing consumer trends and unforeseen events, such as the near miss of this week’s tube strike, can all drastically impact revenue and costs.
Seeking professional advice is preferable for accurate and knowledgeable financial forecasting. But, with the start of the new year, and applications to run a pub surging, we’ve put together some tips to help people get started and know what to look for.
While the importance of forecasting is evident, achieving accuracy can be challenging. Below are some tips to enhance the precision of your financial forecasts:
Historical data serves as a reliable foundation for your forecasts. Analyse previous years’ sales, expenses, occupancy rates, and other relevant metrics to identify patterns and trends that could influence future performance.
Stay updated with the latest industry trends and market research. Changes in consumer behaviour, technological advancements, and economic conditions can significantly impact your business and should be considered in your forecasts.
Implementing advanced forecasting tools can substantially improve accuracy. These tools use algorithms and machine learning to analyse data and generate forecasts, eliminating human error and bias.
Forecasts should not be static; they should be regularly reviewed and adjusted to reflect actual performance and changing conditions. This will ensure your forecasts remain relevant and accurate.
Involve different departments in the forecasting process. Their insights into their specific areas can provide a more comprehensive and accurate view of the business’s future.
Accurate predictions within the hospitality sector are hard to make. but by using expert equipment, knowledge and historical data you’ll be able to give your businesses the best possible start to 2024. Get in touch with ETC Finance today to see how we can help your business this year.