Forecasts are the kernel of your business. They are the basis on which you raise money, negotiate premises and order raw materials. These are only a few of the decisions that need to be made in advance with only your forecasts as guidance on how much is needed. Making a wildly inaccurate forecast can, for example, lead to raising insufficient funds. When the business fails to meet expectations and begins to run short of money, it may prove impossible to raise further funds. Lenders are very wary of handing out more when forecasting has proved to be mistaken. The result could be liquidation, or bankruptcy if you are a partner or sole trader, and the end of your dreams.

However, making no forecasts at all is even sillier. ...

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