What is Small Business Forecasting?
Small business forecasting occurs when a business owner or leader includes his or her vision and strategic thinking, alongside historical facts and data, to ensure the continued success of the small business. Forecasting means looking forward while focusing on the present. And while a business owner always hopes for the best, it is much more important that small business forecasting include reasonable projections. This is important for effectively managing a small business. Creating a business budget from small business forecasting provides the owner and other managers a solid blueprint on which to achieve the encompassing business strategies. Business budgeting should include forecasts of all revenue from sales, as well as expenses. By accurately projecting revenue and expenses it will help the small business owner realize whether other types of financing will be required to maintain consistent cash flow. For instance, if revenue projections shortfall the total expenses, even if narro
