Running a business allows you the opportunity to make many decisions — and the farther into the future you can look, the more profitable these decisions can be. Take into account the following tips from the Kankakee County Chamber of Commerce to make more accurate projections for your venture.

Why Do Small Businesses Need Accurate Financial Projections?

You may wonder why you need to determine the state of your business's finances months or years from now. This activity allows you to do the following:

• Allocate funds and resources. As an enterprising business owner, being unable to follow through with plans due to a lack of resources or inadequate funds can be immensely troubling. That's why it's essential to make accurate projections on what will be needed in order to get the job done right. Having the ability to accurately predict one's budget and assess how much time and money will be required for a particular task allows an entrepreneur to make informed decisions that could prove invaluable down the road. With these kinds of forecasts, you are able to effectively plan ahead and manage finances accordingly, as well as ensure that sufficient supplies and materials are available at any given time. Making accurate projections also gives you a better idea of how your business is performing, allowing you to allocate resources more efficiently.

• Provide investors with accurate data. From predicting outgoing and incoming cash flows to understanding how factors like the economy could potentially affect your business, having an accurate financial projection is vital for showing investors that you have taken steps to prepare for whatever comes. Having such projections will also reveal any discrepancies between reality and expectation, which could give you time to make necessary changes if needed. Being able to provide potential investors with sound financial data that accurately reflects your company’s anticipated performance is an invaluable asset that can provide rewards both now and in the future.

• Prepare for uncertain times. In the face of rising inflation and supply chain issues, having an accurate understanding of your company's current financial position and predicting future fluctuations can be an invaluable tool. Estimating potential income and expenses — not only for the next month, but also for the quarter and year ahead — could determine how best to plan for any changes in the economy or other external factors. By accurately assessing your situation, you are able to make well-informed decisions when it comes to investing resources into new products or services, expanding market reach, or even cutting costs where necessary. 

• File accurate tax reports. For entrepreneurs, accurate filing of taxes can be a pivotal factor in the financial success of their operations. Paying quarterly taxes or estimating income and expenses owed at the end of the year can help business owners stay on top of their obligations. Another important step to keeping good standing with state and federal organizations is filing an annual report that details your income and expenses for the year. Such reports are typically required by most states and should include updated contact information.

3 Tips for Predicting Your Business's Financial Future

Forecasting your financial future is similar to creating a good budget — but there are a few important differences. You can think of your predictions as realistic blueprints for how you expect your business to grow.

1. Be Realistic

We'd all love to found a startup that grows into a multimillion-dollar company overnight. Don't put these fantasies into your spreadsheets, though. Look at your past sales and expenses to determine how the next few quarters and years will likely play out, and use both qualitative and quantitative methods to make the best predictions. You can certainly factor in how the onboarding of a new client or the hiring of marketing staff may change your business when you're making your calculations.

2. Don't Use Paper Tracking

Perhaps the most important takeaway here is that you need to digitize your documents. Even if you're used to performing small calculations with paper and pencil, now isn't the time to potentially misplace a document. Right now, starting with a spreadsheet such as Microsoft Excel is likely fine for your small business. You can convert your Excel spreadsheet to a PDF file to make it easier to email to staff members or investors, and then use a tool to switch from PDF to Excel when you need to make adjustments to it (you can also use a PDF editor to make changes as needed directly to the PDF). As your business grows, you will have the opportunity to use more professional software to make financial predictions.

3. Divide Your Projections by Category

Don't try to lump all of your finances into one spreadsheet. According to experts, even if you're running a fledgling startup, you should create an income statement, a sales projection, an expense sheet, and a budget that forecasts your cash flow.

Create a Schedule for Your Projections

Creating and sticking to a schedule can be one of the most important steps in making accurate financial predictions. Having a set timeline for estimating income and expenses for the month, quarter, and year can help entrepreneurs better plan for potential changes in the economy or other external factors. Using an online schedule template to stay organized may also prove beneficial, as this may help with tracking progress and staying on top of deadlines.

Make a Plan and Continue Reviewing

If you want to see growth, the most important thing you can do right now is to create a long-term picture of how you're using your resources and make a plan for improvement. Use this advice as a solid foundation for your future business decisions, and it will help you to compile accurate records for potential investors and for your required annual report. It may feel like a lot of work, but regularly examining your financial position will make a big difference in your business’s future.

Become a member of the Kankakee County Chamber of Commerce to access resources and advocates that will help you grow your company!

Small business owners have to assume every position in the company, especially when they're first starting out. It's a lot to manage, but don't worry — we're here to help. In this blog post, we'll share seven best practices that will promote success in your small business. From revisiting your target market to switching to online accounting, these tips from the Kankakee County Chamber of Commerce will help you streamline your operations and achieve your long-term goals.

1. Is Your Target Market Changing?

As your business grows and evolves, it's important to revisit your target market on a regular basis. What demographics are you targeting? What needs does this market have that your product or service can fill? By periodically reassessing your target market, you can make sure that you're always marketing to the right people — and that you're doing so in the most effective way possible.

2. Is Your Marketing Plan Up-to-Date?

Along similar lines, it's also important to re-evaluate your marketing plan on a regular basis. What marketing channels are most effective for reaching your target market? Are you using those channels to their full potential? Are there any new channels that you could be using to reach more people? By staying up-to-date on the latest marketing trends, you can ensure that your marketing efforts are always working as efficiently as possible. And if you need a fresh set of eyes, work with a marketing freelancer. This PDF online editor works well for giving feedback on PDFs, which your freelancer is likely to rely upon. But it’s free, easy to use, and leaves you with a digital record of all feedback given.

3. Are Your Systems All Organized?

This one might seem like a no-brainer, but it's important to mention nonetheless. As a small business owner, Asana reminds you that it's crucial that you stay organized and on top of everything that's going on in your business. This means keeping meticulous records, setting up systems and processes, and delegating tasks appropriately. When things start to get overwhelming, it can be tempting to let things slide — but trust us, organization is key to maintaining a successful small business.

4. Are You Demonstrating Effective Communication Skills?

Effective communication is essential in any business, but it's especially important in a small business. With such a limited staff, it's crucial that everyone is on the same page at all times. According to Better Up, that means communicating effectively with both customers and employees alike. Make sure that everyone knows what their roles and responsibilities are, and that they understand how their work fits into the bigger picture. When everyone is working towards the same goal, success is sure to follow.

5. Are You Innovating Regularly?

Innovation is what drives businesses forward, so it's important to encourage it in your team members. Whether it's coming up with new ideas for products or services or finding more efficient ways to operate, innovation should be encouraged at every level of your small business. When employees feel like their ideas are valued, they're more likely to be engaged and invested in their work, which will ultimately lead to better results for your business as a whole.

6. Are You Using the Best Accounting Strategy?

Online accounting software has come a long way in recent years, and it can be a major game-changer for small businesses. Not only does online accounting make it easier to track expenses and invoices, but it also makes it easier to manage payroll and stay compliant with tax laws (not to mention saving you a ton of time and paper). If you're still using an old-fashioned accounting system, now is the time to make the switch — you won't regret it!

7. Is Your Business Plan in Order?

It's important to have a solid business plan in place from day one, but that doesn't mean that plan should never be changed or updated. As your business grows and changes over time, your business plan should, too. Periodically review your plan to make sure it still makes sense for your current situation, and don't be afraid to make changes as needed. A carefully-evaluated business plan is essential for any successful small business, so make sure yours is up to date!

Revise and Grow

These seven best practices will promote success in any small business. From revisiting your target market to encouraging innovation, these tips will help you streamline your operations and achieve your long-term goals. And don’t be afraid to hire a freelancer if you need help with marketing or any other goals. They can be great assets, and there are plenty of free tools you can use to improve your communication between clients, contractors, and employees.

Paper’s out, people.

Award-winning comedian, writer, and producer Hasan Minhaj has partnered with Adobe Acrobat to celebrate 30 years of PDFs and to promote the power of paperless creativity and collaboration in today's digital age. The partnership highlights the importance of using digital tools to streamline workflows and enhance productivity, especially in the current work-from-home era.

As part of the partnership, Minhaj is featured in a series of videos showcasing how Adobe Acrobat can help professionals across industries to create, edit, and share documents seamlessly — no paper needed. The videos also provide tips and tricks for using Acrobat's features to improve collaboration and communication among team members.

Adobe Acrobat is a leading software solution that enables professionals to create, edit, and sign PDF documents securely and easily. The platform offers a range of features, including the ability to convert documents to PDF format, edit text and images, and add comments and annotations. It also integrates with other Adobe tools, such as Creative Cloud, to provide a seamless workflow for creative professionals.

The partnership between Hasan Minhaj and Adobe Acrobat kicked off with a range of digital and social media activations. Paper’s out, people, so stay tuned for more updates on how Acrobat is empowering creativity and collaboration in today's digital landscape.

Whatever PDF tool you need to streamline workflows, Acrobat’s got it. Learn more here.