Forecast On Purpose - Business Growth Advisory for Entrepreneurs

There are a handful of ways you can think about defining success:

• What is your "flag in the distance" toward which everything should align?
• What is the “why” or purpose behind what you do and care about?
• When you get to the end of your life and look back, what do you hope to see?

(Company) will (goal) by (date), which will allow me to (result).

This is important because it means I will be able to (driving "w...

We will get into the specifics in more detail in future episodes, but the goal of today is to set the stage for what makes a great forecast and focus on the primary parts.

Objective today: inspire imagination about what’s possible and give permission to define purpose.

• Three P’s (see visual) 
  • Purpose
    • The “Why”  
    • Custom definition of success
    • What will make this all worthwhile?
    • Why does it matter? 
      • Others will quick...

How did the business start? 

What problem is it solving in the world?

What are the current key decisions being considered?

Who are the decision makers?

How have revenue and expenses changed year over year?

What kind of seasonality does your business experience?

What are your current pricing methods and gross margins?

What are your current total fixed period costs per mo...

So how will we actually reach the results we want? Now it’s time to connect the dots between where we are today and where we want the business to go.

When we extrapolate historical financial patterns into the future, we are able to develop an initial baseline forecast that paints a picture of our current trajectory. This initial picture can be tailored to include known changes and upcoming investments.

However, we...

• Objective today: 
  • Predict the revenue - Narrow the region of darkness instead of crossing fingers hoping to repeat
• Concept: 
  • what are the building blocks behind we make money?
    • Number of Units x Revenue per Unit 
      • How many will I sell?
      • What is the right price?
    • Common mechanisms 
      • Product
      • Service
      • Subscription
  • How does it change over time?
    • Seasonality 
      • Q4 for consumer good always boosted by Black F...

- Objective today:
    - Unit economics - like individual Lego building blocks that make up the overall profitability picture
    - Revenue per unit
    - Any cost during making and selling
    - Connected to gross margin.
        - 
            - Every % is a penny of each $ available to cover overhead
- Concept:
    - What makes it improve?
        - Increase price
        - Decrease variab...