The last year was an unpredictable one for businesses. This has left a lot of businesses wondering how they can plan for the coming year when they are still recovering from the past year. What makes it even harder is that we are not entirely sure what 2021 will bring.

 

Even though there is not a way to prepare entirely for every scenario that may happen, there are some things that you can do to plan for whatever comes next. Without knowing what the market trends are going to be for the coming year, here are some ideas that you can use to help your business adapt to whatever comes next.

 

Why Bother?

 

Even though it may be unpredictable, it is still important to budget and plan for 2021 just like you would in any other year. Create a 12-month budget that you can evaluate and adjust on a monthly basis to keep up with any changes that occur.

 

It is much easier to alter an existing budget than it is to try to come up with a new one each month. There are even online tools that will help you create and manage a budget. These tools will help you predict sales for 2021 and then recalibrate based on the data you enter throughout the year.

 

Making Predictions

 

If you are feeling nervous about making revenue predictions for 2021, you are not alone. Everyone’s a little shaken from 2020, and no one quite knows what to expect. If you had a great 2020 and are feeling good about the coming year, then you might be able to predict further growth. It may be a better idea for some businesses to set an even budget level for 2021 than this past year in order to hedge their bets. Some businesses are using 2019 as their baseline and budgeting up from there since 2020 was such an unprecedented year.

 

While predictions are important, it is equally important to remember that they will change depending on consumer behaviors in the coming months. If you don’t see the results you were expecting in the next couple of months, you always have the option to recalibrate for the rest of the year.

 

After you make some predictions, you might also notice some changes that you need to make as the coming months play out. You could see gaps where you need to invest some money in new technology or advertising or product changes. The need for technology like video conferencing or a project management planner might also be noticeable. 

 

What to Include

 

Because it can be hard to know what to focus on for your budget for 2021, the most important things you can include are flexible sales goals and a realistic expense plan. Your sales goals should be focused on improving your gross profit margins for 2021. As you set those goals, you should be aware of your product and the margins that are involved with each line item.

 

Your expense plans should factor in any staffing changes that are taking place. If you are adding staff or replacing staff, that will affect your expense plan. If you are adding or replacing staff, then you need to make sure that you are doing it in the most cost-effective way possible.