Small business owners and looking to maximize their business profitability have placed a greater focus on the importance of performance forecasting during the latest economic downturn, says VP Nathan Jurczyk. The challenges of the recent economic downturn have forced small business owners to make difficult decisions with respect to adjusting their operations to meet the new economy challenges. While large corporations and multinational companies have the necessary infrastructure to develop adjustment plans, small business owners in general do not have these kinds of resources at their disposal.

Approximately 95% of small businesses fold during their formative first five years in business. The failures are often fueled by the lack of a proper business strategy or cohesive business plan and improper management of assets.  Expenses run high – and returns are often slow in the making.  To avoid this situation, one must increase their productivity in the business. With the advancement of technology, software solutions have consistently moved lower and lower in price. Any business owner that is serious about developing and maintaining profits can afford to invest in the variety of products available for sale.

According to VP Nathan Jurczyk, “Fundamental budgeting and forecasting tools provided by the Chamber of Commerce, local business development agencies and trade industry business consortiums can help start up businesses with assessing and improving their core business model, driving a quicker return on investment.”

One of the great advantages of such business planning tools is their ability to increase the speed of business assessment and modeling for any task completion. They enable businesses to perform a variety of analytical functions faster and with a relatively high level of accuracy and reliability. The result is that owners can make strategic decisions at the right time yielding improved productivity and a solid foundation for success.

Core business functions are also improved with the effective use of budgeting software, explains Nathan Jurczyk. The enhanced budgeting, forecasting, reporting and analysis assists owners with making decisions that are informed and targeted towards maximizing their returns.

The benefits of implementing budgeting and forecasting program in your business include:

1) Delivering a consolidated, paperless environment: The automated software reduces the need for a wide variety worksheets, forms and papers for financial analysis. The software itself can perform different types of financial functions automatically and with minimal manual involvement.

2) Improved analysis and decision making capability: The ability of the software to perform complex functions frees up management labor to focus on other operational elements, and can greatly enhance the decision making ability and performance of the company staff. Automated trend analysis is also core to a management team’s ability to effectively forecast the business growth.

3) Simple to use: The simplicity of the installation and easy user interface of most systems makes this software easy to learn as well as master. This reduces the learning curve and enhances the decision making ability of the owners.

4) Better reporting features: One must be able to easily read the data to analyze it well. The simple reporting features of the budgeting software make reading the data easy and understandable for business management. This way complex data can be easily interpreted by small business owners to make proper decisions.

In closing, integration of reliable budgeting and forecasting software can greatly enhance the decision making capability of the business owners. Effective use of a system can protect the owners from unexpected exposure to the market loss, according to Nathan Jurczyk. They can easily improve their overall productivity and profitability in the near future using these automated programs.  Businesses just branching into the marketplace should strongly consider partnering with their local business development entity to determine what tools and support structures are available to them – these simple steps, early on, could drastically reduce their business risk and help them to avoid the pitfalls the vast majority of businesses fall into in their formative years.

(Excerpt – small business trade article, with feedback from Nathan Jurczyk)