Forecasting Tip #3 – Track your performance

If you want to get better at forecasting, you and your team need to take time to look at how good your last forecast was and why it differed from the actual outcome. With the time pressures of working life, it is not surprising that this step is missed. But if you get into the habit of a quick review … Read More

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