Financial Forecasting

Forecasting, Budgeting & Planning

No crystal ball can tell you exactly what the future holds. However, operational and financial forecasting allow you to build frameworks to understand how certain events and decisions impact your business.

When talking to your team, bank, potential investors, or a prospective buyer of your business, the stories you tell must be backed by a pathway to successful outcomes and a team with the credibility to navigate the journey. Projections serve as the map, with the captain and crew responsible for reaching the destination, even when faced with choppy waters or changes to the course. 

Sales team wins and losses, production capacity constraints, changes to customer relationships, negotiating supplier arrangements. These are but a few of many moving pieces that may be critical to understand for purposes of your outlook.

Then there are the financial components. Will I have enough cash? Will I stay in compliance with my bank loan covenants? What impact would this decision, success, or failure have on the value of my business and/or my ability to attract capital or sell?

Related Pain Points

“Growth is my dream in action, but managing cash is my nightmare.”
“I lose sleep at night worrying about what surprise is coming next.”

The ability to forecast is a powerful asset for business management. Nobody wants to drive a car by looking only in the rear view mirror. First Water has extensive experience in developing forecasting tools, including:

  • Dynamic operating models to project revenues, expenses, profitability, cash generation (or usage), loan compliance, etc.
  • Cash and working capital management tools such as rolling 13-week cash flow analysis
  • Impact of prospective transaction or investment opportunities, such as combination/merger models, changes to the capital structure (debt and equity investment terms), and ROI analysis

Combined with RootSource, First Water offers a powerful suite of capabilities to analyze performance and look into the future. This includes Managed FP&A Solutions (MFS), our done-for-you offering that includes forecasting which can help you see around the corner and make confident, bold decisions.

Managed FP&A Solutions