Making predictions or projections of Shed finances
As sheds are emerging out of lockdown many are starting to plan ahead for the next year.
After these last eighteen months, we have realised that this isn’t easy especially as things can change really quickly. Who for example knows, if there is going to be another variant in the Covid 19 virus, which could mean another lockdown. However, there are some things we can predict and for others, it’s more difficult. For example, we will know what the standing costs are for rent and insurance etc. Whilst variable costs will be more difficult to predict but based on previous experience it may be possible to make some reasonable assumptions.
Revenue in terms of membership fees sessional payments and sales will be more difficult to estimate as these will be dependent on the willingness of members to return to shedding. Their interest in making things to sell as well the ability to market items and interest from purchasers.
What is important to do, is to see how all these factors interact and project the consequences of increased costs or lower than anticipated revenue on the viability of the shed, ahead of the time that the shed would start to run into the red.
This can be done using a spreadsheet, which can be updated as the latest information is available and can be used to make projections of the impact this information will have on the viability of the shed. This is made easier if the cells in the spreadsheet are set to recalculate as the figures are changed. So for example you can see what would be the effect of the loss of revenue from sessional fees before it is seen in the bank account.