Using a Forecast for Growth: A 2019 Episode About One Client’s Growth Revisited

“Having a strong forecasting process really should make it easier to eliminate things—like knowing if the seventh project is really one of the top seven things we need to do to hit our goals.” – Tom Wadelton

“When you build a budget, you're creating a plan for the next year, and then things happen. No one really expects a pandemic to happen, but things do happen. The question is, how do you adjust?” – Jamie Nau

The finer details of this episode:

• Importance of dynamic forecasting over static budgeting
• Client's growth journey and challenges during the pandemic
• Centralized vs. decentralized decision-making in budgeting
• Regular conversations about forecasts for informed decision-making
• Adapting to new realities and aligning hiring with growth goals
• Changes in sales leadership and their impact on business development
• Role of pipeline meetings in assessing demand and resource allocation
• Transitioning from fractional CFO services to full-time financial leadership
• Strategies for prioritizing projects and initiatives
• Reflecting on achievements and the evolution of business practices over time

Episode resources:

• Summit Virtual CFO by Anders website: https://www.summitcpa.net/
• Email us with questions or if you’d like to be a guest on the show: [email protected]
• We’re hiring! Check out our open positions: https://www.summitcpa.net/career-opportunities
• Check out the 2019 episode here: https://www.summitcpa.net/blog/forecasting-for-growth

Timestamps:

Introduction to the Episode (00:00:00)

The host welcomes listeners to the Creative Agency Success Show and sets the context for the episode.

Revisiting 2019 (00:00:14)

Jamie introduces the "fast forward" episode, referencing a previous discussion about a client's growth in 2019.

Client's Growth Overview (00:01:03)

Tom provides a recap of the client's financial growth goals and challenges faced in 2019.

Impact of the Pandemic (00:02:16)

Discussion on how the pandemic affected the client's growth trajectory and forecasting adjustments.

Forecasting vs. Budgeting (00:02:31)

Jamie emphasizes the importance of dynamic forecasting over static budgeting in uncertain times.

Decentralization Mistakes (00:03:16)

Tom shares how decentralizing budgeting decisions led to frustration during the pandemic.

Importance of Regular Forecast Updates (00:04:02)

Discussion on how frequent updates to forecasts can guide business decisions amidst unexpected changes.

Centralized Forecasting Lessons (00:05:35)

Tom explains the shift to centralized forecasting for better management of growth and hiring.

Sales Leadership Changes (00:06:28)

The introduction of a new sales leader and their impact on the company's growth strategy.

Pipeline Meetings and Forecasting (00:10:02)

Jamie discusses the connection between pipeline meetings and forecasting for effective decision-making.

Current Status of the Client (00:10:49)

Tom provides an update on the client's growth, reaching $23 million by late 2023.

Triggers for Hiring a Full-Time CFO (00:11:48)

Discussion on indicators that suggest a business needs to transition from fractional to full-time financial leadership.

Complexity in Business Decisions (00:12:43)

Jamie highlights how increasing complexity in business operations signals the need for dedicated financial expertise.

Key Takeaways for Business Owners (00:14:17)

Tom shares two crucial lessons from the client's journey: the importance of dynamic forecasting and identifying barriers to growth.

The Importance of Focus (00:17:16)

Discussion on prioritizing key tasks over numerous less impactful ones for better productivity.

Reflecting on Accomplishments (00:17:45)

Emphasis on reviewing past achievements to understand growth and progress made over the year.

The Elephant Analogy (00:18:15)

Using the metaphor of "eating an elephant" to illustrate the need for incremental progress in projects.

Challenges in Prioritization (00:18:23)

Struggles in limiting focus to essential tasks during planning meetings, despite wanting to add more.

Role of Strong Forecasting (00:18:42)

How effective forecasting aids in prioritizing projects aligned with top goals, simplifying decision-making.

Celebrating Five Years of Podcasting (00:19:01)

Reflection on the journey of podcasting over five years and the growth experienced during that time.

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