{"id":3085,"date":"2025-07-08T09:07:00","date_gmt":"2025-07-08T09:07:00","guid":{"rendered":"https:\/\/gothrive.uk\/?p=3085"},"modified":"2026-03-31T13:04:18","modified_gmt":"2026-03-31T13:04:18","slug":"agency-financial-forecast","status":"publish","type":"post","link":"https:\/\/gothrive.uk\/index.php\/2025\/07\/08\/agency-financial-forecast\/","title":{"rendered":"The future of your agency&#8217;s finances: How to create your forecast\u00a0"},"content":{"rendered":"\n<div class=\"wp-block-uagb-container uagb-block-4f517f31 alignfull uagb-is-root-container\"><div class=\"uagb-container-inner-blocks-wrap\">\n<div class=\"wp-block-uagb-container uagb-block-776da628\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-28f84493 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-uagb-container uagb-block-138d36ae\">\n<div class=\"wp-block-uagb-container uagb-block-8d4257f8\">\n<div class=\"wp-block-uagb-container uagb-block-e2948b0a\">\n<div class=\"wp-block-uagb-info-box uagb-block-5f3de5f5 uagb-infobox__content-wrap  uagb-infobox-icon-above-title uagb-infobox-image-valign-top\"><div class=\"uagb-ifb-content\"><div class=\"uagb-ifb-title-wrap\"><\/div><\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-b55b282c\"><h2 class=\"uagb-heading-text\"><strong><strong>The future of your agency&#8217;s finances: How to create your forecast&nbsp;<\/strong><\/strong><\/h2><\/div>\n\n\n\n<div class=\"wp-block-uagb-container uagb-block-44cc7760\">\n<div class=\"wp-block-uagb-advanced-heading uagb-block-0a6ba344\"><p class=\"uagb-heading-text\"><em>Updated 8th July 2025 &#8211; by <a href=\"https:\/\/www.linkedin.com\/in\/paulmug\/\" target=\"_blank\" rel=\"noreferrer noopener\">Paul Muggeridge-Breene,<\/a> Thrive CEO<\/em><\/p><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>What does the future look like for your agency\u2019s finances?<\/p>\n\n\n\n<p>I know every agency founder would love to have a crystal ball to get the answer to this one. But while it\u2019s impossible to be certain about what the future will bring, you can still create a solid financial forecast that will help you guide your decision-making.<\/p>\n\n\n\n<p>In fact, being able to explore what the future may look like is one of the best ways to increase your confidence and <a href=\"https:\/\/gothrive.uk\/index.php\/2024\/04\/19\/take-control-agency-finances\/\">feel in control of your agency\u2019s finances<\/a>.<\/p>\n\n\n\n<p>Here\u2019s how to build your financial forecast:<\/p>\n\n\n\n<p><strong>1) Start with your dashboard<\/strong><\/p>\n\n\n\n<p>I\u2019ve written previously about <a href=\"https:\/\/gothrive.uk\/index.php\/2024\/06\/19\/dashboard-track-agency-financial-performance\/\">creating a financial dashboard<\/a> to track your agency\u2019s performance. You want to create your forecast in this dashboard, effectively extending it to run for a full financial year with actual numbers for past months and forecast numbers for future months.<\/p>\n\n\n\n<p>The aim is to end up with the dashboard showing how your financial year could play out &#8211; i.e. total potential income, profit and the all-important key metrics.<\/p>\n\n\n\n<p><strong>2) Use your best estimates<\/strong><\/p>\n\n\n\n<p>The most important point to keep in mind when creating your forecast is to base everything on your best estimates. The question to ask for each piece of data is: what\u2019s the most likely outcome? This is what your main forecast should show, and it\u2019s all about using your judgement &#8211; and, ideally, the collective judgement of everyone on your team.<\/p>\n\n\n\n<p>You can base your best estimates on past experience, your understanding of your clients and your knowledge about the industry and the wider economy. Critically, you should take into account your \u201cspidey senses\u201d, or what your gut tells you.<\/p>\n\n\n\n<p><strong>3) Add estimates to your dashboard<\/strong><\/p>\n\n\n\n<p>Now you need to add your best estimates into your dashboard. As ever, there are lots of ways of doing this. The simplest approach is to add some extra rows &#8211; eg in the income section you could include rows to cover things like pipeline income or additional income from existing clients. Ultimately, you should do whatever will be most helpful for your particular situation.<\/p>\n\n\n\n<p>If you use a CRM to track your pipeline, some systems can export a month-by-month forecast breakdown which you could enter into your tracker. If you use a spreadsheet, figure out the best way of taking what you have to create the monthly figures for the forecast section of your tracker. Remember that you want your pipeline to be weighted, which means the potential income for each job should be multiplied by the percentage likelihood of the work being signed off.<\/p>\n\n\n\n<p>Don\u2019t forget to include any potential extra outgoings in your forecast, too. For example, if you\u2019re planning to recruit new team members, use more contractors or award pay rises.&nbsp;<\/p>\n\n\n\n<p><strong>4) Take a step back<\/strong><\/p>\n\n\n\n<p>Now your dashboard should be complete, showing your best overall estimate of what your full financial year will look like. Now you can take a step back and see what the forecast is showing you. What does your full-year income look like and, most importantly, what\u2019s your profit margin? What are your other key metrics showing &#8211; eg gross profit margin and staff costs to income ratio?<\/p>\n\n\n\n<p>By exploring both the overall figures and the monthly breakdowns, you\u2019ll be able to uncover really key business information. For example, you\u2019ll see when you can expect to be busy and may require some additional support. Or you might see that you actually need to start looking at reducing costs in some areas to maintain your profit margin.<\/p>\n\n\n\n<p>As you get used to updating and reviewing your forecast regularly, it will become your most useful tool for managing your business.<\/p>\n\n\n\n<p><em>Our\u00a0financial dashboard tool <a href=\"https:\/\/pulsedashboard.co.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pulse<\/a> has been designed specifically for agencies, to provide founders with confidence and clarity, and to help make key business decisions<\/em>.<\/p>\n\n\n\n<p><em><em><a href=\"https:\/\/www.linkedin.com\/in\/paulmug\/\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Paul Muggeridge-Breene<\/em><\/a><em>&nbsp;is an exited agency founder, qualified accountant, certified coach, former international journalist and a member of the British Psychological Society. Please&nbsp;<a href=\"https:\/\/gothrive.uk\/index.php\/contact\/\">get in touch<\/a>&nbsp;if you\u2019d like to discuss how Thrive can help you.<\/em><\/em><\/em><\/p>\n\n\n\n<div class=\"wp-block-uagb-testimonial uagb-slick-carousel uagb-tm__arrow-outside uagb-block-0e2f2ee7\"><div class=\"is-carousel uagb-tm__columns-1 uagb-tm__items\"><div class=\"uagb-testimonial__wrap  uagb-tm__imgicon-style-circle uagb-tm__image-position-top uagb-tm__bg-type-color \"><div class=\"uagb-tm__content\"><div class=\"uagb-tm__overlay\"><\/div><div class=\"uagb-tm__text-wrap\"><div class=\"uagb-tm__desc\">&#8220;Paul from Thrive has been <strong>exceptional<\/strong>.&#8221;<\/div><div class=\"uagb-tm__meta-inner\"><div class=\"uagb-testimonial-details\"><span class=\"uagb-tm__author-name\"><strong>Thrive client<\/strong><\/span><span class=\"uagb-tm__company\"><\/span><\/div><\/div><\/div><\/div><\/div><div class=\"uagb-testimonial__wrap  uagb-tm__imgicon-style-circle uagb-tm__image-position-top uagb-tm__bg-type-color \"><div class=\"uagb-tm__content\"><div class=\"uagb-tm__overlay\"><\/div><div class=\"uagb-tm__text-wrap\"><div class=\"uagb-tm__desc\">&#8220;We couldn&#8217;t have asked for a more <strong>dedicated and capable<\/strong> partner&#8221;<\/div><div class=\"uagb-tm__meta-inner\"><div class=\"uagb-testimonial-details\"><span class=\"uagb-tm__author-name\"><strong>Thrive client<\/strong><\/span><span class=\"uagb-tm__company\"><\/span><\/div><\/div><\/div><\/div><\/div><div class=\"uagb-testimonial__wrap  uagb-tm__imgicon-style-circle uagb-tm__image-position-top uagb-tm__bg-type-color \"><div class=\"uagb-tm__content\"><div class=\"uagb-tm__overlay\"><\/div><div class=\"uagb-tm__text-wrap\"><div class=\"uagb-tm__desc\">&#8220;Working with Paul has been <strong>transformative <\/strong>for our agency.&#8221;<\/div><div class=\"uagb-tm__meta-inner\"><div class=\"uagb-testimonial-details\"><span class=\"uagb-tm__author-name\"><strong>Thrive client<\/strong><\/span><span class=\"uagb-tm__company\"><\/span><\/div><\/div><\/div><\/div><\/div><div class=\"uagb-testimonial__wrap  uagb-tm__imgicon-style-circle uagb-tm__image-position-top uagb-tm__bg-type-color \"><div class=\"uagb-tm__content\"><div class=\"uagb-tm__overlay\"><\/div><div class=\"uagb-tm__text-wrap\"><div class=\"uagb-tm__desc\">&#8220;Paul from Thrive is <strong>awesome<\/strong>.&#8221;<\/div><div class=\"uagb-tm__meta-inner\"><div class=\"uagb-testimonial-details\"><span class=\"uagb-tm__author-name\"><strong>Thrive client<\/strong><\/span><span class=\"uagb-tm__company\"><\/span><\/div><\/div><\/div><\/div><\/div><div class=\"uagb-testimonial__wrap  uagb-tm__imgicon-style-circle uagb-tm__image-position-top uagb-tm__bg-type-color \"><div class=\"uagb-tm__content\"><div class=\"uagb-tm__overlay\"><\/div><div class=\"uagb-tm__text-wrap\"><div class=\"uagb-tm__desc\">&#8220;A <strong>great listener<\/strong>, with a genuine stake in our success.&#8221;<\/div><div class=\"uagb-tm__meta-inner\"><div class=\"uagb-testimonial-details\"><span class=\"uagb-tm__author-name\"><strong>Thrive client<\/strong><\/span><span class=\"uagb-tm__company\"><\/span><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-uagb-buttons uagb-buttons__outer-wrap uagb-btn__default-btn uagb-btn-tablet__default-btn uagb-btn-mobile__default-btn uagb-block-f3d1076c\"><div class=\"uagb-buttons__wrap uagb-buttons-layout-wrap \">\n<div class=\"wp-block-uagb-buttons-child uagb-buttons__outer-wrap uagb-block-a08e8b05 wp-block-button is-style-outline\"><div class=\"uagb-button__wrapper\"><a class=\"uagb-buttons-repeater wp-block-button__link\" aria-label=\"\" href=\"index.php\/about\/\" rel=\"follow noopener\" target=\"_self\" role=\"button\"><div class=\"uagb-button__link\">READ MORE<\/div><\/a><\/div><\/div>\n<\/div><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Creating an easy to understand financial dashboard is the first step towards feeling in control of your agency&#8217;s 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