The best way to predict a company’s future is to plan it. But planning must be based on reliable information and strategy. Today, businesses in Singapore, whether large corporations or small-scale, have the benefit of interacting with customers online. They use real-time data to establish trends and predict the future fairly accurately.
Customer trends help to inform business leaders of anticipated growth areas, thus influencing strategy. The companies, in turn, can predict the growth rates with considerable accuracy. But how do these companies come up with fairly accurate growth rates? What factors do they consider?
Here are the steps you can take to make good predictions of your company’s future.
Choose a forecasting approach
Businesses today interact with customers on digital platforms, and there’s an abundance of accurate historical data. Thus, all businesses should, at the very least, use quantitative forecasting or average approach to forecast.
Digital technologies have made it easy for business leaders to draw up records of previous costs, revenues, and other vital business data and establish trends as well as predictions of the future. However, this requires a reasonable level of skill, especially with highly technical areas like accounting. Consider outsourcing to an accounting firm in Singapore like Ackenting Group. With our team of professional and certified accountants, you will gain better management and prediction of your company’s financial future.
Know your expenses
It’s easier to start with the known than the unknown. What are your expenses currently? Do you record the overheads, staff costs, marketing costs? How about legal, insurance and other costs? If you are running a small business, you may be doing all these tasks – including accounting – all by yourself.
This may take a toll on you. It also takes away the much-needed energy to drive sales and handle other core business matters. When you outsource to an accounting services company in Singapore, it can help to shed some of the workload. At Ackenting Group, our accounting firm will help you come up with easy methods to record your expenses and help you when you need to analyze. You can rely on our experience to handle the complexities of various accounting requirements.
With a firm knowledge of business expenses and trends, you can make fairly accurate predictions of the expenses the company will incur in future. For the best-case scenario, always prepare for higher expenses.
Think big, but be cautious
When predicting revenue growth, it is crucial to think big, but vital to maintain a level head and recognize that anything can happen. As such, some level of caution is advised.
Aiming for the stars helps you to adopt stretching targets, thus attaining faster growth rates. But the reality of competition and uncertainties will help you adopt a decreasing-rate growth trajectory. That is, you may anticipate high growth during the first year, but due to increased competition, revenues may dip in the subsequent years.
Figuring out a good estimate may be hard. However, you can seek assistance from an accounting firm in Singapore to come up with more accurate metrics and provide a clearer picture. With better decisions making, you can look forward to grow your company strategically.
Consider multiple scenarios
An outsourced accounting firm can be your business partner in the sense of working together with you to test multiple future scenarios and overcome any hurdles your business face. This is also important during the strategy building stage as you move forward. Our financial experts at Ackenting Group provides tailored innovative solutions that are flexible and scalable to assist your business in reacting efficiently to changing market conditions.
Look at consumer spending
Consumer spending trends and predictions in Singapore are a significant factor of consideration. Small businesses mainly derive their revenue from how consumers spend. Consumer spending is affected by shifts in the macro-economic, and micro-economic environment. When the shifts are predicted at a macro-scale, you can adjust predicted revenue figures accordingly. On the other hand, microeconomic changes will call for adjustments in strategy.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
