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It’s Only Common Sense: How to Elevate Your 2024 Business Forecast

The most successful companies spend a great deal of time studying the present year and preparing early for the coming year. These companies focus on what worked and what didn’t. They look at products and market trends and want to be sure they can meet current and future trends.

The smartest companies spend time on their customers. They focus on their key accounts to see how they’re growing, what markets they’re in, and what they expect from their suppliers. Creating account plans is one of the key elements to planning for the future. After all, how can you tell where you’re going if you don’t even understand where you have been? How can you understand where your customers are going if you don’t know where they’re coming from?

Smart companies spend time studying their key accounts. What accounts came in and how? They compare it to years past to create intelligent algorithms that will predict how they’ll attract new business in the next 12 months.

Armed with this information, they create a forecast. An intelligent customer-by-customer, month-by-month forecast is the most essential tool a company can create. Forecasting sales will help the rest of the company plan for the coming year.

By using a forecast, the operations team can describing what they will need to handle the number of forecasted sales. The engineers can use this to determine the new technology they should be working on, and the company can decide which capital expenses will be needed. Finally, the quality team can predict the specifications and qualifications needed to meet the forecasted customers’ needs.

Salespeople: Stop cringing at the mere mention of account plans and forecasting. Sorry, it’s part of your job. You are the forward thinkers of the company, and it’s your responsibility to develop and publish the most accurate forecasting possible. That’s the end of the story. No arguments.

In fact, I would strongly urge sales leaders to tie their sales team’s compensation to accurately making and hitting their forecast in the company year, then prepare for an annual kick-off meeting at the beginning of the year where the entire team—from operations to engineering, to quality and sales and management—come together to develop and decide on the strategy for the coming year.

This is critical. Personally, I do not understand companies that won’t do this. It makes no sense that a company would avoid spending time on their business planning.

To help you in your own company’s planning for 2024, here is a checklist of what you have to be doing. 

• Reflect on the previous year. Start by reviewing the successes and challenges of the past year. Identify what worked and what didn't. Use this assessment to inform you of your strategies for the upcoming year.
• Set clear goals and objectives: Define specific, measurable, and achievable goals for your business in 2024. These goals should align with your long-term vision and provide a clear direction for your efforts. Develop those account plans and forecasts.
• Create a budget: Develop a comprehensive budget that outlines your expected revenue, expenses, and investments for the year. Ensure your financial plan supports your goals and allows for flexibility.
• Evaluate your market: Analyze your target market and industry trends. Understand your customers' needs, preferences, and behaviors. This knowledge will help tailor your products or services accordingly.
• Competitive analysis: Assess your competition and identify opportunities to differentiate your business. Understand their strengths and weaknesses to position yourself effectively in the market.
• Marketing strategy: Develop a robust marketing plan that includes both online and offline strategies. Consider content marketing, social media, email campaigns, and other methods to reach and engage your target audience.
• Sales strategy: Define your sales goals and strategies. Train your sales team, if applicable, and implement a customer relationship management (CRM) system to track leads, conversions, and customer interactions.
• Operational efficiency: Streamline your operations to improve efficiency and reduce costs. Automate repetitive tasks, update your technology infrastructure, and ensure your team is well-equipped to handle their responsibilities.
• Employee development: Invest in your employees by offering training and professional development opportunities. A skilled and motivated team can contribute significantly to your business's success.
• Monitor progress: Set up key performance indicators (KPIs) and regular reporting mechanisms to track your progress toward your goals. Be prepared to adapt your strategies if necessary based on the data and feedback you receive.
• Important: Consider the potential impact of external factors, such as economic conditions, regulatory changes, and emerging technologies on your business. Flexibility and adaptability are crucial in today's dynamic business environment.

Remember that successful planning and execution require ongoing effort throughout the year. It does you no good to throw the plan in the bottom drawer after your January sales meeting. Stay committed to your goals, stay informed about market changes, and be prepared to adjust your strategies as needed to ensure a strong 2024 for your business. If you do all these things and do them right, you’ll have a great 2024.

It’s only common sense.

Dan Beaulieu is president of D.B. Management Group.