Money Matters: Five Ways Forecasting Can Help Your Business Prepare for a Successful Future | News, sports, jobs

As we gather around the table this Thanksgiving, let’s reflect on the many things we are grateful for: family, friends, good food, sports, the bottomless bread basket, and a cold garage full of pies. Additionally, the Fullcast work family is grateful for the people and opportunities that allow local businesses to thrive.

Just like green beans taste better with crunchy onions, stuffing them with lots of butter is more dreamy, and cauliflower casserole is best forgotten in the microwave, there is one crucial ingredient that can help businesses have a successful year ahead: forecasting.

For many, Thanksgiving is a time to plan ahead for the season. Forecasting is like that for companies. Forecasting tools and formulas predict future trends, allocate resources efficiently, and avoid financial pitfalls.

In this season of gratitude, let’s explore the five gifts of forecasting that help businesses reap the rewards of sound financial planning and prepare for a successful future.

1. Reap the rewards of efficient inventory management. Before the last potato is harvested, the golden apple is picked and the pumpkin is cut into pieces, farmers are already planning next year’s harvest. They know how much to plant, when to harvest and what the market demand is. For businesses, planning with forecasts helps predict future demand for products and services and prevent over- or under-stocking of inventory.

Proper inventory is critical because too much inventory ties up cash in unsold goods, while too little inventory leads to lost sales. Through effective inventory management, a business can save up to 30% in reduced inventory costs or inventory.

Like estimating the number of rolls for Thanksgiving dinner, accurate forecasts help companies ensure they’re prepared for the busy season without overloading their balance sheets with unnecessary inventory.

2. The gift of predictive insight. Imagine planning a Thanksgiving feast without knowing how many guests you will have. You may have too much turkey or not enough pie, resulting in waste or disappointment. The same thing can happen in business if you don’t know how much of a product or service is needed.

“Forecasts are a powerful money-saving tool by helping businesses anticipate future needs and trends, allowing them to make more informed decisions,” said Megan Ross, SEO Director at Fullcast. “By predicting sales trends, companies can adjust their marketing efforts and staffing levels accordingly to avoid unnecessary expenses and maximize ROI.” This proactive approach can prevent financial stress when unexpected costs arise.

3. A secure financial cushion. Did you know that mashed potatoes are the second most popular food on the Thanksgiving table? Thanksgiving reminds us of the importance of having enough food for the holidays. Companies also need to be prepared for possible financial challenges. Using forecasts, companies can anticipate cash flow fluctuations and plan accordingly.

“Forecasts also help companies identify potential risks early and respond with cost-saving measures before problems become costly problems,” Ross said. Companies can build a financial cushion by predicting periods of weak sales or unexpected costs. This foresight allows businesses to avoid the stress of not having enough cash to cover essential expenses. A solid forecast provides security and ensures that companies are prepared for any storm, even in bad times.

4. A golden opportunity for marketing. The holiday season offers businesses a unique opportunity to capitalize on increased consumer spending. But how can companies know when to launch a marketing campaign, offer discounts, or stock up on unique products?

“Automation is really key to predicting go-to-market,” Ross said. “To compete in this space, companies need an integrated platform that streamlines revenue operations, automates the forecasting process and leverages data-driven insights to provide accurate, real-time forecasts. Our SEO and Revenue Operations (RevOps) teams look at historical data, algorithmic analysis, market trends and targeted business metrics to guide future performance, set realistic sales targets and optimize resources for advertising budgets.”

Forecasting allows companies to anticipate increases in demand and adjust their marketing efforts to maximize sales during peak seasons.

5. A grateful heart for managing risk. Life is unpredictable and so is business. However, with accurate forecasts, companies can anticipate and mitigate risks that impact their financial health. Forecasting allows companies to plan for different scenarios, be it an economic downturn, changes in consumer behavior, or regulatory changes.

By identifying potential risks in advance, companies can make informed decisions to minimize impacts, just as you might prepare your home for winter storms. This proactive mindset can help companies emerge stronger and more resilient even from difficult times.

Like a well-planned holiday feast, accurate forecasts ensure companies have the right ingredients for success, be it optimal inventory, healthy cash flow or strategic marketing.

By using forecasting to anticipate future needs and trends, companies can make more informed decisions, avoid unnecessary risks, and prepare for a future of growth and prosperity. So as you carve the turkey and toast with your team this season, give thanks for the power of forecasting—and the financial benefits it can bring to your business.

J’Nel Wright is a content writer at Fullcast, a Silicon Slopes-based end-to-end RevOps platform that enables companies to design, manage and track the performance of their revenue-generating teams.