Budget for Success
with Business Forecasting
One of the most difficult yet exciting aspects of starting a business can be ambiguity. Unpredictable and ambiguous financials, however, proves much more daunting than anything else. This is where business forecasting can be a game changer.
Business forecasting helps you create target goals and predict your business’ future economical positions, easing your financial concerns and giving you the information you need to help your business thrive.
Why Use Business Forecasting?
It is not uncommon for companies to utilize business forecasting as a way to plan ahead and measure their successes and pain-points. In order to secure accurate business forecasts, you must consider different variables such as the current product or sales numbers. You must also look to your business’ past activity and performance, and consider how that may affect your future data. For example, some businesses will consider how a new product launch may alter their business’ financial patterns long-term.
- Forecasting Leads to Faster, Better Business Decisions
Forecasting helps you budget for success. Sticking to your budget can be difficult. Business forecasting alleviates this difficulty by giving you the tools you need to make smarter, faster decisions in order to make the most of your funding and excel in the current market.
- Forecasting Gives You Market Knowledge
Business forecasting requires you to be constantly aware of the evolving market. In turn, not only does business forecasting help you become a market expert, your expertise will also help you be more strategic in your customer approach. Essentially, business forecasting helps you stay up to date and ahead of the game, which is crucial to differentiate your business and keep your customers engaged.
- Forecasting Strengthens Your Budget
Your budget is designed to guide you through the year or quarter to help you make the best business decisions. But what happens when the market changes? Business forecasting utilizes real-time information to help predict future outcomes, enabling you to adapt your budget quickly and intelligently. If you want to stick to and make the most of your budget, make business forecasting an integral part of your financial process.
Business Forecasting Models
This data-driven model relies on numbers rather than expertise as a guide. For example, you can use this model to compare past and current revenue numbers to draw trends and make decisions. Use this model to find trends, reduce the probability of inflated forecasting, and appeal to investors through numbers-based evidence for success.
Unlike the quantitative model, this model is heavily based on instinct and expertise. Predictions are often made by market experts and sales teams that establish forecasts based on experience and trends. Use this model to capture nuances that the numbers don’t detect and provide a buffer for inadequate or inaccurate data.
- Time Series Analysis and Projection
This model focuses on changes within time-specific intervals in order to draw trends and make predictions. Use this model to provide accuracy in stable market environments and detecting fluctuations.
The Causal model provides a detailed account of the relationship between two different events to help you make business forecasts. The benefits of using this model include evaluating independent and dependent variables, and both internal and external factors.
Business Forecasting Made Simple
Here at ScaleFactor, we recognize how powerful business forecasting can be for helping you stick to your budget. That’s why we’ve created solutions that allow you to budget with ease and better predict your business’ success!
Stay in-the-know with business insights tailored to your goals. ScaleFactor automatically delivers insights throughout the month for data-driven visibility into your business. Plus, you can connect with your account manager at any time to review your insights.
ScaleFactor makes it easy to analyze your financial data. You can easily build unlimited scenarios to see how different situations could impact your business, and quickly see exactly where your business is excelling and where it can improve.
Track your most important expense categories and get real-time updates on your current expenses, so you can fix potential issues before they become real problems. See exactly where you spend is today and stay on budget with our “Percent of Budget” view.