Forecasting Tip #2 – Always forecast a range of outcomes

Unless you have the gift of second sight or are a time traveller, you do not know how the future of your business will work out. Other than for very low risk operations, there is always going to be a range of future outcomes that are possible. The purpose of forecasting is to outline in financial terms what this range … Read More

Forecasting Tip #1 – Distinguish between forecasts and targets

This is the first in a series of tips on forecasting. These will run alongside our tips on Pricing (and maybe others to come). A forecast is a statement about events whose actual outcomes have not yet been observed. In business, forecasts are made to help manage operations, cashflow and expectations. Risk and uncertainty are central to forecasting. A target … Read More