Ep09 Planning for Growth: How to Build a Profitable, Purposeful Business Plan

Good planning isn’t about creating a perfect spreadsheet—it’s about building clarity and confidence in where your business is heading. In this episode, Nicola unpacks how to create a practical plan that keeps you on track financially and strategically, without getting lost in the details.

You’ll hear how to set goals that link to your personal ambitions, map out what success actually looks like, and use your numbers to guide decisions rather than reacting to them. Nicola also shares how to plan for profit, not just turnover, and how to stay adaptable when things change.

If you’ve ever found planning overwhelming or something you “should do someday,” this episode will help you turn it into a simple, motivating process that drives real results.

What You’ll Learn:

• The difference between financial targets and meaningful goals.
• How to plan for profit and cash flow, not just revenue.
• A simple framework to keep your plans flexible and focused.
• Why aligning business plans with personal goals leads to better decisions.

Resources & Links:

I’ve written a book that expands on the topics in this podcast and comes with a companion guide. Learn more at www.thenumbersquarter.co.uk/book.

About the Podcast:

The Balanced Business – The Director’s Handbook is a 12‑part podcast series hosted by Bedford‑based Chartered Accountant Nicola Hageman. Designed for UK small business owners and company directors, the podcast explains how to run a Limited company with more clarity, confidence, and control. Each episode covers a practical topic – from choosing your business structure and staying compliant with HMRC to budgeting, VAT, systems, and delegating. The series is based on Nicola’s book and companion guide, available at www.thenumbersquarter.co.uk/book.

About Nicola and The Numbers Quarter:

Nicola Hageman is the founder of The Numbers Quarter, a friendly and approachable accountancy practice based in Bedford. She specialises in helping owner‑managed businesses grow their profits, plan for the future, and reduce stress. Nicola is known for her plain‑speaking advice and passion for aligning personal and business goals.

Connect with Nicola:

• Instagram – www.instagram.com/nicola_hageman
• LinkedIn – www.linkedin.com/in/nicolahageman
• Website – www.thenumbersquarter.co.uk

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Transcript

0:14

Hi, and welcome back to the Balanced Business Podcast. I'm Nicola Haman from the Numbers Quarter, and this is episode nine of the Director's Handbook, a space where we talk through the real life bits of running a limited company without the jargon or the overwhelm. Now in today's episode, we are going to talk about something that might not sound all that thrilling, but I promise it's one of the most empowering things that you can do as a business owner. We are talking about planning ahead and specifically about budgeting and forecasting. Now before you start imagining massive spreadsheets and financial plans that look more like science projects than something you could actually use, let me stop you right there. Planning ahead doesn't have to be complicated. It is not about getting every penny in the right column. It's about giving yourself clarity, confidence, and space to make decisions before something becomes a problem. Because let's be honest, when money feels tight or unpredictable, everything feels harder. Doesn't it? But when you've got a plan, even if things change, you feel in control, you are not reacting all the time. You are leading. So in this episode, we are going to talk about the difference between a budget and a forecast. Why even the smallest business benefits from planning ahead, how to keep it simple and actually useful, and how it links back to your bigger goals, not just your numbers. So let's get started. So why does Planning ahead matter? Let's start with that. When you are running a business, especially a small or a growing one, the day to day can feel full on you're spinning plates, you're serving clients and dealing with a team, marketing admin, and somewhere in the middle of all of that, you are supposed to keep on top of your money as well. So what most people do is focus on what's happening right now. What's coming in, what's going out, and can I pay the bills for this month? And that's fine for a while, but if you never look up and plan ahead, you can end up stuck in a cycle of just reacting to whatever's urgent. And when you are always reacting, you are not in control. You are firefighting. So having a budget and a forecast is like giving yourself a map You still need to steer the business and there will be bumps in the road, but at least you know where you're going and whether you are on track to get there. So budgeting versus forecasting, what is the difference? So these two terms do get thrown around a lot, and they're often used interchangeably, But they actually mean slightly different things. So a budget is your plan. It's what you intend to happen. You look ahead usually 12 months and say, this is what I expect to earn. This is what I think I'll spend, and this is what I hope to have left over. Think of it like setting your sat nav. It's based on where you want to go. Now a forecast is your best estimate of what's likely to happen based on what you already know. So if a budget is your goal, a forecast is your realistic projection. It's where you say, right, I was expected to make 10 K this month, but I've only secured six K in sales so far. So let's adjust the numbers and see what that means. The two work together. Your budget gives you direction and your forecast keeps you grounded in reality. So why do you need a budget, even if you're small? Now, I know that a lot of small business owners think that budgets are for big companies with finance departments and boards of directors, but honestly, I think budgets are even more important when it's just you or a small team because if you're not in control of your money, then who is having a budget gives you a reason to check in with your numbers regularly gives you a way to plan for tax salaries, holidays, investments. It gives you a filter for making better decisions, like, can I afford that new hire or not? And it gives you a way to link your business goals with your personal goals, because let's be real, most of us didn't start a business to stare at spreadsheets. We started because we wanted something more, more freedom, more flexibility, and more income. A budget helps you make sure that your business is actually delivering on those. So how do you create a simple budget? You don't need to be an Excel wizard to create a budget. So let me talk you through a really simple approach that you can use. Step one, start with your sales goals. Look at what you are aiming to sell over the next 12 months. Now, this could be based on last year's numbers, any work that you've already got booked in, any new packages or services that you want to offer, and maybe any seasonal trends in your industry. Break it down month by month if you can. This helps to see where your quiet periods or peak times might be. Step two, add in your fixed costs. These are things that you pay every month regardless of how busy you are. So think for software subscriptions, salaries, insurance, office, rent, or coworking. These are usually easy to plan for because they don't change that much. Step three, estimate your variable costs. These are things like subcontractor payments that might go up or down depending on how busy you are. So materials or supplies, travel, one-off purchases or events. Do your best to estimate and just adjust as you go. Step four, build in your own pay and tax savings. This is the bit that a lot of people forget. Make sure that your budget includes how much you want to pay yourself and how much you set aside for corporation tax. V 80 T and self-assessment and be realistic here. There's no point budgeting for five KA month. If you need 2K of that for tax and bills. Let's be honest about what's yours and what's not. And then step five, see what's left over. Once you've added all your expected income and your expenses in, you are going to be left with a projected profit or shortfall, hopefully a profit. If it's a profit, great, now you can plan what to do with it. And if it's a shortfall, also great because now you've seen it before it happens, and you can make changes to make sure that you turn it into a profit by the end of the year. And then onto forecasting. So this is your monthly check-in. So once your budget's in place, your forecasting is how you keep it alive. At the start of each month, you will ask, what do I know for sure this month? What invoices have I sent out? What expenses are already planned and has anything changed? You're going to then adjust the forecast based on what's actually happening and look ahead to see if there are any pinch points coming up. This is where forecasting gets powerful because it lets you say, if I don't get any new sales next month, I'll be 2K short by July, so I need to take action now. And that's the difference between panic and proactive. And honestly, the biggest benefit that I see from clients who start budgeting and forecasting regularly isn't even financial. It's emotional. It's that shift from, oh, I think I'm gonna do okay to, I know where I stand from. I hope I can pay the next tax bill to that Money's already set aside, and it goes from, can I afford this to let me check the forecast? It creates headspace confidence. And just a bit more calm and then linking your budgets to your bigger goals. So one of the things I always talk about, and I know I say it a lot, but your business should be working for you, not just financially, but in terms of energy and time and lifestyle. So when you're planning ahead, ask yourself, how much do I actually want to take home this year? How many hours do I want to work? What would I like to invest in? Training, holidays, team, and then check, is the business budget supporting that or is it just reacting to survival? Because that's where the magic happens. When your numbers and your goals are aligned, you stop drifting and you start building something purposeful. Now, you need to keep it simple because the key to successful planning isn't complexity. It's consistency. You don't need a 47 tab spreadsheet, and you don't need forecasting software if that's not your thing. You just need a clear view of what's coming in and what's going out and what that means for you. Do a quick budget once a year. Review your forecast once a month and make small adjustments as you go. That's it, and if you work with an accountant like me, make this part of the conversation. Don't just talk about the past. Ask about the future as well. That's it for episode nine of the Balanced Business Podcast. I do hope that this episode is giving you a fresh way to think about planning and how you can use your numbers to feel more in control, not more stressed. Next time we are gonna talk about getting help when it's time to bring in a bookkeeper, A-V-I-A-A payroll service, or even just someone to help you stop doing it all on your own. So I'm Nicola Haman from the Numbers Quarter. Thanks for joining me and I'll see you in episode 10.