21 Hats Podcast Dashboard: Your Forecast Will Be Wrong. Do It Anyway
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Dec 12, 2025 In this conversation, Tracy Beck—founder of The 60 Minute CFO and coauthor specializing in financial fluency—breaks down the art of forecasting for small businesses. She tackles the common fears that hold owners back and reframes forecasting as a tool for directional planning. Tracy shares a simple three-step process and highlights the importance of team involvement for accurate predictions. With her innovative GPT tool, she showcases how AI can simplify forecasting complexities, enabling business owners to spot opportunities and adjust plans swiftly.
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Forecasts Are Direction, Not Truth
- Forecasting is not about being an oracle; it's about setting a direction everyone can see.
- A rough plan lets your team help navigate detours instead of driving blind.
Use A Simple Three-Step Forecast
- Do a three-step forecast: revenue, expenses, and the balance sheet.
- Include the balance sheet so assets, loans, and cash impacts aren't missed.
Forecast Revenue By Business Line
- Break revenue down by business line and model each line's margin separately.
- Involve sales and customer-facing staff to validate realistic line-level forecasts.
