Forecasting

Forecasts and projections are used for a number of purposes: to present to potential investors, to calculate cash needs, to strategically scale, board reports, or to assess survivability in a number of situations.

 

We look at historical data and the variables that will factor into the future of the company, and develop predictive models to guide best decision-making practices.

 

The most common type of forecast is a financial forecast, where a business wants to show the impact of growth on its P&L, Balance Sheet, and Cash Flow.  This is often investor or board-facing.

 

Another example is forecasting operations as they grow and expand, such as the need for machinery, materials, to understand and leverage economies of scale, or to predict best-practice processes to increase efficiency and/or profitability.

 

There are also humans to consider.  As a business grows, the needs for people increase which requires additional hiring and manager resourcing, as well as identifying the best method of scaling each discipline based on capacities and dependencies.  This plays very closely with our Tiered Employee Staffing Models.

Image by Chris Liverani