The concept of ‘steering by numbers’ is a business strategy of forecasting, planning and analysis. This very simple idea will look at business logic from a forecast and budget model which then allows comparisons between performance and expectation.
We now live in a data driven world and the modern way of finance can choose how to generate forecasting. They can explore through artificial intelligence (ai) and then get specialists to translate it into meaningful and useful data. Alternatively, you can take the simplest of approaches; you set a target based on previous results and you take the actions needed to achieve success.
If we explore this simple approach, we really are saying that you are steering your ship thanks to the numbers. You have a vision and an idea of what the journey to success will be and you translate the performance numbers into your goals. Setting objectives and a clear budget that will help to keep you travelling in the right direction with as little deviation as possible.
Of course, while the process does seem like a simple one, by just following the numbers, we know that there can always be an unaccounted influence on any journey. At times you will have to adapt to varying circumstances. Using our shipping analogy, the weather could change and we might have to detour slightly to safely navigate through the storm. Forecasting and budgeting is not always easy but with the help of business leaders and specialists you can quite quickly get back on track.
Another factor to consider is a business could have sufficient budget funds available but if they do not have any detail around planning or strategy then how can we measure success? If you budget and plan based on performance and accurate strategy, then you are on the right track to achieve success. Strong foundations in numbers, makes the planning process easy and enables safe navigation to your onward destination.
The one final element to help is the storage of all the data so that the numbers are on hand as and when you need them. Again, back to our shipping analogy this is the ships navigation system that helps you navigate throughout your journey, even if you manage to slip off-course. By utilising technology (e.g., Xero or Quickbooks) to help you with your budgeting and forecasting, the process is made even simpler.
If you are looking for a little help with your numbers or need a little bit of guidance, please call us on 01173 700 079 or e-mail firstname.lastname@example.org. You can also book a free 30-minute call with Yarka – https://calendly.com/yarka-ssa/30min