What Should a 12-Month Forecast Include?

If you're a business owner, especially in industries like the construction or film production, you've probably been told to do a 12-month forecast more times than you can count. 

But here’s the thing most business owners don’t really know what that means. Or if they do, they’re creating something that doesn’t actually guide them.

They either:

Throw together a few guesses on a spreadsheet and hope for the best

 Overload it with unrealistic growth figures or avoid it altogether because they’re too busy putting out fires

But a well-structured, clear, and realistic 12-month forecast is the difference between reacting to problems and anticipating them before they hit.

So, let’s walk through exactly what a good forecast should include and why it matters.

1. Clear and Specific Revenue Projections

Forecasting isn’t about throwing hopeful numbers around. You need to base it on real data.

Ask yourself:

• Where will your income actually come from?

• Are you relying on current customers, or hoping to gain new ones?

• What’s the likelihood of repeat business in the next 12 months?

• Are there any one-off projects you’re counting on?

Be conservative where needed, especially if you don’t have firm commitments. Forecasting based on inflated income figures is worse than no forecast at all. It gives a false sense of security.

2. Monthly Expenses — Not Just the Obvious Ones

Yes, you’ll include staff wages, rent, insurance, and subscriptions. But it’s the irregular costs that trip businesses up.

These include:

• Annual licence renewals

• Equipment replacement or servicing

• Marketing campaigns

• Unexpected professional fees

• Rising material or production costs

The key thing is to anticipate these costs before they catch you off guard.

3. A Cash Flow Tracker

This is the part many businesses miss: When the money lands in your account is more important than how much is invoiced.

For example:

You might make a big sale in January but if the client pays in April, your forecast needs to reflect that.

You could have £200,000 in contracts, but if payments are staggered and costs come upfront, you’re in a cash crisis.

Your 12-month forecast should include:

• Client payment timelines

• Supplier payment due dates

• Payroll schedule

• Loan or lease repayments

• VAT and tax deadlines

📌 Key takeaway: A profitable business can still go under if cash isn’t managed properly.

4. Growth Plans & Investments

Thinking of hiring? Launching a new service? Moving offices?

Great but don’t just put that in your goals doc. Your forecast should reflect the financial impact of every major decision.

Include:

• Initial costs

• Ongoing costs (e.g., a new hire’s salary)

• Expected return on investment (if any)

Why? Because it helps you evaluate if you can actually afford it and when.

5. “What If” Scenarios

Life doesn’t follow a spreadsheet. A good forecast builds in contingency planning.

Think about:

• What if your biggest client pulls out?

• What if your project costs increase?

• What if you exceed your targets by Q3?

A strong forecast will have room for adjustment so you’re never caught unprepared.

Why Does This Matter?

Because your forecast isn’t just a financial tool, it’s your decision-making partner.

With a reliable 12-month forecast, you can:

• Know when to scale (or pause)

• Plan tax and VAT payments with no surprises

• Negotiate with lenders or investors from a place of strength

• Avoid sleepless nights wondering if you’ll cover payroll

How We Help

At Williamsons Consultants, we’ve worked with businesses, from construction firms balancing multiple projects to film producers navigating unpredictable funding and release schedules.

We don’t just hand you a spreadsheet and walk away. We help you:

1. Build a tailored, realistic forecast

2. Understand what the numbers actually mean

3. Adjust the forecast regularly based on performance

It’s what keeps businesses calm, confident, and financially in control.

If you’ve been putting off your financial forecast or struggling to create one that’s truly useful contact us: 📞 Call: 07768 390330 📧 Email: willconsult69@hotmail.com