The Importance of Forecasting to accelerate business growth

Having the best tools at your disposal, you should not underestimate the importance of forecasting. Here we give you our reasons and tell you what Prophix can do for your business 

What forecasting means for your business

We can draw a parallel between climate forecasting and business growth forecasting. In both cases, you use available data to create a picture of the future conditions you might face. It consists of taking advantage of historical records to make informed estimates of possible trends.

Reasons supporting the importance of forecasting

Importancia del forecasting

The importance of forecasting in your business comes from the need to leave behind the art of guessing the future. Having a competitive business means being one step ahead and not trying to catch up with the market.  To gain an advantage over your competition, the ability to make informed forecasts helps you:

Anticipate changes in the market

It is fair to say that companies are subject to market whimsies.  Many times, they catch you by surprise and other times you are prepared to adapt.  By forecasting you have an idea of the general trends that may happen, and it puts you in a precautionary stance.  Because you are not reacting, you can adjust your sales forecasts to manage and improve demand.

Much of forecasting involves optimizing business resources. Since there can be so many of them, perfecting them simultaneously can be a crucial differentiator. With Prophix’s assistance, you have a tool that reveals your key metrics and gives you a numerical picture of the state of your resources in real time

Putting your capital in the right place

In an ideal world, companies would have unlimited liquidity. But since this is not the case in reality, there is often not enough time or money. Instead of throwing your capital at random, forecasting guides you to the best investments. Whether it’s hiring staff, launching a new product, or improving your online presence, there’s always room for improvement.

Plan the future

When you don’t see your business as a hobby and you have dedicated your best to it, you want it to become a future project. The importance of forecasting is that it gives you the ability to plan for the short or long term. To do so, you have 3 approaches:

Qualitative. Suitable for new companies without historical data
Quantitative. Recommended for recognizing successful patterns and trends from the past
Causal model. It is used to identify causal relationships in the data

Advantages of using Prophix for forecasting

forecasting para acelerar el crecimiento empresarial

Prophix is an innovative software that allows to automate y those critical processes and minimize risks.  Through its depth and simplicity, you have budgeting, planning, consolidation, and reporting under control. To accelerate your business growth, it offers:

To eliminate the use of unreliable spreadsheets that do not give you a clear view of what lies ahead
The ability to develop strategic and operational plans to enhance your forecasting capabilities to meet internal and external demands
A sophisticated tool designed to reduce manual labor and improve internal collaboration through a more accurate visibility of the future

If you want to know more about the features of Prophix, at Fusionwork we give you the information that you need

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