While yearly forecasting used to be the norm, companies are looking at more frequent budgeting to adapt to the fast-paced reality of the world we’re in.
There are three common types of forecasting businesses undertake:
- Yearly Forecasting
- Quarterly Forecasting
- Monthly Forecasting
Over the next three weeks, we’ll share more detail about each of the above forecasting types and outline the pros and cons. As you consider your own business, and as you read our series over the next three weeks, keep in mind your own business’s goals, and also the following questions:
- What stage is your company at (start-up, expansion, looking to invest in technology, etc.)?
- What are your strategic goals for the next year? Five years? Ten years?
- How quickly does your industry move?
- What are your revenue sources and how frequently do new sources come in? (For example, does most of your revenue come from two or three large projects, or from many small transactions?)
- How large is your company and do you plan to expand your team size in the coming years?
- How much are you willing to spend on budgeting and forecasting?
How frequently do you budget? Would you budget more often if you could?
Check back next week to learn about yearly forecasting!