7 Steps to Building The Right Business Forecasting Process For Your Startup

We’ve all suffered through it.

The end-of-year Zoom call where the fearless founder, likely fueled by a few craft beers, starts riffing off bold projections for the upcoming year.

“We’re gonna crush it”

“We’re gonna change the game”

“2x… 5x… 10x”

You get the idea 😉

I’m all for setting ambitious goals, and have crazy amounts of respect for any founder audacious enough to pursue them.

But ONLY if they’re backed by a robust forecasting and tracking/reporting system that helps bridge those “BHAG’s” into reality.

Without that, you’re blowing hot air and essentially giving your team an unrealistic (and unwinnable) game.

In this week’s episode, I cover the 7 aspects of a powerful forecasting system that helps you ground ambitious goals into the day-to-day reality of your startup… while keeping your team excited and motivated to hit them.

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At a high level, your forecasting system will be made up of the following:

  1. Historical Data
  2. Resources
  3. Work Backwards
  4. Set Targets
  5. Review Monthly
  6. Iterate Quarterly
  7. Don’t Teach Your Team to Lose

The final point is arguably the biggest difference between companies that win and those that fizzle out. Any founder can step in front of a team and declare plans to “take over the world”.

But massive goals WITHOUT the proper forecasting system are a recipe for disaster.

Reckless enthusiasm will only take you and your team so far.

At some point, those missed projections will breed a losing culture and a collective eye-roll with every new initiative you dare set.

By all means, go big. But stay real.

And implement the forecasting system in this episode to coach a winning culture that actually follows through on their plans for world domination 😉

Dan Martell has advised more startups than his hometown has people and teaches startup founders like you how to scale. (Get the free 3 videos to grow your business here.) He previously created, raised venture funding for and successfully exited two tech startups: Flowtown and Clarity.fm. You should follow him on twitter@danmartell for tweets that are actually awesome.


Originally published at www.danmartell.com on October 1, 2018.