Once you get your business rolling forward there are several crucial decisions that you will be faced with. Some of these include further investment, diversification, optimization and forecasting. Of these forecasting is crucial to prepare for the future of the company.
Forecasting basically enables you to anticipate a growth or a slump in the market. This is crucial in order to survive and make smart decisions. For example, if you were a car spare parts manufacturer, forecasting will help you decide on how many of each part you would need to manufacture for the next year or next few years. If the factors are good, then you need to increase production. This may mean investing in more equipment, employing more staff or putting the existing staff on extra shifts and paying increased salaries, finding more ways to distribute the parts etc.
Conversely a prediction of a slump will mean that you have to find ways of cutting costs and riding out the storm. This could mean shutting down certain lines of production, laying off staff, cutting costs etc. However, forecasting is not an exact science. It can only take in the existing factors and give you a prediction based on those factors. One of the best ways to increase the accuracy of these predictions is to use business forecasting software. Using software means that you can easily input all sorts of variables and watch how they affect your business. Doing this by hand would be tedious and probably fry your brain in the process.