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Archive for August, 2009

Planning for the future is essential for any organization, may it be in business or non-profit. It is a critical aspect of management since the success of the company or organization depends on how well the company foretells future situations so that it can arrange plans and strategies ahead of time.

Business forecasting is not a laughing matter since it can make or break the company. Poor forecast can lead to less sales generation, poor production strategies, and may even result to bankruptcy, while good forecast prepares the company for likely situations in the future. Successful business owners are the people who can efficiently make good forecasts and are able to use the information they get from it to their own business advantage. There are methods of forecasting when it comes to businesses. Such methods can be categorized into two: quantitative and qualitative. Using econometric models, time-series approaches, and indicator approaches are examples of quantitative methods while the Delphi and the market research as well as the scenario writing and subjective approach are the frequently used qualitative methods.

Using the mentioned methods in business forecasting is not an easy task either as it requires effort, extensive research, and analysis. But it doesn’t stop there. You should also verify whether the forecast result is reasonable based on the data you used.