Budgeting Season: How to Build a Board-Level Forecast
When budgeting season hits, most companies scramble to update last year’s spreadsheet, plug in growth targets, and hope it all adds up. But if you’re leading a restoration company pushing $10M+ in revenue—or reporting to investors, banks, or a board—you need a different level of precision.
A board-level forecast isn’t just about hitting “submit” on a budget. It’s about building a financial plan that aligns with strategy, anticipates risk, and gives decision-makers confidence in your next 12–18 months.
Here’s how to build one that actually drives business decisions—and holds up under scrutiny.
Step 1: Start With Strategy, Not Spreadsheets
Before diving into numbers, ask the big questions:
Are we expanding into new markets or services?
Are we adding crews, project managers, or estimators?
What risks could hit revenue (TPA loss, delays in collections, labor shortages)?
What capital expenditures are on the table?
Your forecast should reflect these plans and pressures—not just a straight-line growth assumption.
Step 2: Break It Down by Division or Service Line
High-performing restoration companies don’t forecast in bulk. They build segmented models:
Mitigation
Rebuild
Contents
Environmental or specialty services
Regional or branch offices
Each unit should have its own revenue and cost structure. Forecasting this way helps you set realistic performance expectations and gives your board better insight into where profits are coming from.
Step 3: Build a Driver-Based Revenue Model
A board-level forecast connects the dots between operational activities and revenue. That means starting with things like:
of jobs per month by service line
Average job size
Close rate from estimates
Capacity based on staffing
From there, you can layer in seasonality, marketing campaigns, or territory growth to project realistic monthly income.
Step 4: Get Granular With Expenses
Avoid the trap of budgeting expenses as flat monthly averages. Instead, budget based on:
Labor by role (and include labor burden)
Subcontractor and materials cost per job
Recurring fixed costs (rent, software, insurance)
Variable costs tied to volume (fuel, temporary labor, equipment rental)
This gives you more accurate gross margins and better insight into what’s driving profit fluctuations.
Step 5: Incorporate a Rolling Cash Flow Model
Boards and investors care about cash just as much as profitability—especially in restoration, where delays in insurance payments can create serious gaps.
Overlay a 13-week rolling cash forecast that:
Reflects timing of collections by service line
Includes payroll, rent, and major vendor payments
Accounts for CapEx or debt service
You’ll stand out from the crowd if you can speak to both profitability and liquidity.
Step 6: Stress-Test Your Forecast
Show you’re thinking like a CFO, not just a department head. Run a few scenarios:
20% slowdown in TPA referrals
Delay in major rebuild payments
Surge in labor costs or overtime due to weather events
Boards love to see that you’ve thought through what could go wrong—and that you have a plan.
Step 7: Use It to Guide Monthly Leadership Meetings
A board-level forecast shouldn’t sit in a folder until next year. It should:
Drive monthly reporting
Be compared against actuals
Inform hiring and capital decisions
Tie into incentive plans and bonuses
Your forecast becomes a living strategy tool—not just an annual budgeting task.
Need help building a forecast that’s board-ready and field-tested for restoration companies? At Kiwi Cash Flow, we help contractors turn financial reports into decision-making tools. Book a strategy call now and let’s build a budget that backs your next level of growth.