Introduction

As the year winds down, it’s natural to reflect on what’s worked in your business and what hasn’t. But let’s go a step further. Instead of just looking back, what if you used this time to create a game plan for your finances in 2025?

Enter forecasting: a straightforward but powerful tool to assess where your money went this year and where it should go next. Think of it as a vision board for your business finances—grounded in numbers, not glitter.

Reflecting on the Past Year

Let’s start with a little financial soul-searching. Grab your reports, light a candle (or a crystal if that’s your vibe), and ask yourself:

• Did you pay yourself consistently? Or were you sacrificing your paycheck to keep the business afloat?
• Were you prepared for taxes? Or did April feel like a surprise party you didn’t want to attend?
• Did you reinvest enough—or too much—in your business? Growth is great, but not at the expense of stability.

Take note of your wins and the areas where you’re ready to do better. This is your starting point.

Forecasting for 2024 with a Simple Plan

Forecasting isn’t about perfection; it’s about direction. Use these categories and percentages as your guide to map out income for Q4 and beyond:

1. Owner and Team Pay (50%)

You and your team work hard and deserve a reward—period. Set a pay goal for the year and make it non-negotiable. If you’ve been underpaying yourself or your team, this is the year to fix that.

2. Taxes (15%)

The taxman waits for no one, but you can plan ahead. Allocate a percentage of your income now to avoid scrambling later. Bonus: any leftover funds can go straight into your pocket.

3. Profit (5-10%)

This is your business’s safety net. Build up a cushion for emergencies or reinvestment. Aim for three months of expenses to start, then decide how to allocate quarterly profits.

4. Operating Expenses (20-25%)

Keep your spending lean but effective. Evaluate subscriptions, tools, or services you’re no longer using and trim the fat. Remember, the tighter your expenses, the higher your profit.

5. Long-Term Savings (5%)

Whether it’s planning for expansion, a new hire, or simply creating a buffer for economic uncertainties, this category ensures you’re building stability over time. Treat this like an investment in your business’s resilience and growth—because future you will thank you.

Take Action for a Strong Finish

Your reflections from 2024 aren’t just insights—they’re instructions for 2025. Use them to:

• Adjust spending habits.
• Set clear financial goals for the year.
• Create a roadmap that ensures your bills are paid, taxes are covered, and you’re building a business that serves you.

A simple forecast isn’t just about numbers—it’s about creating clarity and confidence for what’s ahead.

Gratitude for the lessons of 2024 meets action for the opportunities of 2025. Ready to turn insights into impact?

Schedule your Financial Wellness Assessment and let’s make 2025 your best year yet.