Why is forecasting important for business?

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Forecasting is important because businesses thrive on being prepared.  If you are a business owner, you need to know as accurately as possible what your outlook will be in the future.  You need to know this in order to anticipate, for example, how much of various products you will need...

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Forecasting is important because businesses thrive on being prepared.  If you are a business owner, you need to know as accurately as possible what your outlook will be in the future.  You need to know this in order to anticipate, for example, how much of various products you will need to order from your suppliers or how much (if at all) you will need to expand your manufacturing capacity.  If you do not have good forecasts of things like sales volume for the next year, you will be unable to buy the right amount from your suppliers and you might end up with excess inventory or you might run out of materials at a time when demand for your product is high.

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