Evaluate historical data and prepare assumptions that will drive the planning process.

Using the Cash Budget Spreadsheet, calculate detailed Company cash

It is essential to take into account a range of factors when evaluating historic data or preparing the assumptions that will drive your planning. These include social, economic and environmental trends. It will be easier to determine potential challenges or opportunities that could impact on the success of a plan. It is also useful to review past performance records in order to understand how different variables have affected results. These can be considered when creating future plans.

In addition, when making assumptions it can also be beneficial to compare industry averages with those of competitors. For example, if an organization’s average customer satisfaction rating has typically been lower than its competitors then it might make sense to set a goal of increasing satisfaction by a certain percentage over time in order to become more competitive on that front.

In order to be feasible in the long run, assumptions must always consider both short and long term goals. By balancing current needs and projected goals for growth, you can help ensure all parties are working toward the same outcome.