How do you review and update your coaching budget and forecast regularly?

1 Define your budget and forecast

Your budget and forecast are two different but related documents that help you plan and monitor your coaching business. Your budget is a detailed breakdown of your expected income and expenses for a specific period, usually a year or a quarter. Your forecast is an estimate of your future income and expenses, based on your current and projected performance, market trends, and goals. Your budget and forecast should align with your business plan and vision, and reflect your realistic assumptions and scenarios.

2 Review your budget and forecast monthly

To keep your budget and forecast up to date and accurate, you should review them monthly, or more frequently if needed. Reviewing your budget and forecast monthly allows you to compare your actual results with your planned ones, and identify any variances or gaps. You can use a simple spreadsheet or a software tool to track your income and expenses, and generate reports and charts that show your progress and performance. You can also use online tools or apps to automate some of the tasks, such as invoicing, bookkeeping, and tax preparation.

3 Analyze your budget and forecast variances

When you review your budget and forecast monthly, you should analyze the reasons behind any variances or gaps between your actual and planned results. For example, you may find that your income is higher or lower than expected, or that your expenses are more or less than budgeted. You should investigate the causes of these variances, such as changes in demand, pricing, costs, or competition. You should also evaluate the impact of these variances on your cash flow, profitability, and growth potential.

4 Adjust your budget and forecast as needed

Based on your analysis of the budget and forecast variances, you may need to adjust your budget and forecast as needed. For example, you may need to increase or decrease your income or expense projections, or revise your assumptions or scenarios. You may also need to modify your goals or strategies, or explore new opportunities or solutions. You should update your budget and forecast with the latest data and information, and communicate any changes to your stakeholders, such as clients, partners, or suppliers.

5 Use your budget and forecast to make decisions

Your budget and forecast are not only tools to monitor your coaching business, but also to guide your decision making. You should use your budget and forecast to evaluate your options and opportunities, and to determine the best course of action for your coaching business. For example, you can use your budget and forecast to decide whether to invest in new equipment or training, to raise or lower your fees, to expand or diversify your services, or to hire or outsource staff.

6 Review your budget and forecast regularly

Reviewing and updating your budget and forecast regularly is not a one-time or annual task, but a continuous and ongoing process. You should review your budget and forecast regularly to keep them relevant and realistic, and to adapt to the changing needs and conditions of your coaching business. You should also review your budget and forecast regularly to celebrate your achievements and successes, and to learn from your challenges and mistakes. By reviewing and updating your budget and forecast regularly, you can manage your coaching business more effectively and efficiently.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?