Celebrated Astro Strategist™ and Business Astrologer Mr. Hirav Shah says, “When starting a new restaurant business, it is important for the new restaurateurs to estimate their expected cash flows. It is impossible to have an accurate plan for the future, without an idea of how much money your business can generate.”
According to Hirav Shah, “When you have CLARITY on where you want to go in life or business and Guidelines on what are the CHANCES of REACHING there, things get less confusing.”
Hirav Shah points out that, “The idea of opening a new restaurant can be daunting. On top of hunting and securing a location, executing an artistic interior design, and finalizing the tasty menu, you also have to set realistic income goals, decide how much staff to hire, and chalk out your overall finances.”
Not only will this help new restaurateurs and even the established ones with financing, but it will also give you a good idea of the goals you need to reach to make a profit and stay in business. Many might think how is this going to help you with anything other than planning your budget, but as you go deeper you will realize the many benefits of this intelligent practice. Hirav Shah lists down the advantages of Estimating Income.
1. Brings in more investors
Whether you are an entrepreneur or an established hotel owner, if you are looking for investors then revenue forecasting is going to get you some great investors. Hirav Shah tells us, “A detailed and well-researched revenue forecast, preferably one that is backed by facts, market trends, and predictions can help you convince lenders and investors that investing in your business is a lucrative and smart investment.”
2. Budget business expenses
Estimating your income for the upcoming year can help you budget your business expenses early on, providing you with a reliable estimation to compare your progress with. This makes sure that you don’t stray far from the track, and accomplish all your set goals.
3. Executes strategic planning
Estimation of revenue facilitates strategic planning and tells you how soon you will be ready for executing and implementing your plans. You will have an idea of when to make your next big investment to reap the loftiest benefits.
4. Improves production scheduling
Estimating income can help you better manage your production scheduling by preventing bottlenecks that could result in lost sales. Restaurateurs can identify potential downtimes and the busiest days, helping you to cut your losses and up your revenue by planning your production tasks efficiently. One of the ways is to balance your manufacturing and production processes by building your inventory during dull periods.
5. Helps you know your customers better
One of the greatest benefits of revenue forecasting is valuable customer insight. You can prepare your team better by knowing your customers better, leading to the development of better products and marketing strategies. The pricing of the products on the menu can also be done in a better way when you know your customers in and out.
6. Manages cash flow and credit
Hirav Shah species is one of the most common reasons for estimating income. As per him, “With the help of efficient cash flow management, you can effectively plan the timely delivery of your payments, project when you will receive payments, and avoid generating late fees and missing any payments to your vendors or suppliers. Forecasting is also a major factor when it comes to obtaining credit either for paying your employees or a new venture. You can negotiate better terms when you know when you will need credit.”
7. Contributes to sales and product analysis
Revenue forecasting not only includes the amount of money your company will make but also where it comes from. Sales and revenue forecasting go hand-in-hand because sales forecasting helps you determine how much your product(s) is/are contributing to your bottom line. This highly impacts your decision to drop profitable products that don’t contribute to the gross profit or increase the sales of other low-margin products that contribute more to the gross profit.
As evident, the importance of revenue forecasting is not just limited to budget allocation and planning for the next year. It highly impacts strategic planning and decision-making processes that lead to the company’s future success and growth.
When you forecast restaurant sales, you can streamline operations and optimize costs, both in your inventory and labor.
Hirav Shah concludes by saying, “This concept of AstroBusiness Analysis will help you a great deal in Revenue Forecasting so that you come out stronger, faster, and smarter when unexpected realities happen in your life and business. You can transform your thinking from how life used to be to how life will be. That’s what the job of an Astro-Strategist for Entrepreneurs is! By getting the RESULTS in ADVANCE.”