What is frecasting, and how it helps in business planning?

Whether you’re an entrepreneur, small business or corporation, the market is constantly changing and it requires you to constantly adapt to stay afloat. To make those adjustments, you need to make projections of what may happen.  And that’s why forecasting is one of the first steps of business planning.

The first step of forecasting is to make reasonable assumptions pertaining to the market, your resources, and time. Keeping these assumptions in mind, you can start forecasting almost everything numerically: sales, profit, taxes, expenses, etc. 

On top of that, you can also create multiple best-case and worst-case scenarios, and that further prepares you for any surprises in the market. This helps businesses especially when they are facing a crisis.

Different Methods and Models of Forecasting

Forecasting is an extremely comprehensive and discretionary process. There are hundreds of methods, models & approaches to choose from. But we believe these four are the most relevant:

1. Bottom Up Method

This is where every department/team in the firm makes their individual forecasts with respect to their operations. Then there are firm based forecasts made by combining these little pieces to form the bigger picture

2. Top Down Method

This is basically the reverse of the Bottom-Up Method. There is a forecast made on an industry/firm-level and that is trickled down into branches of different business processes.

3. Historical Method

This is where every department/team in the firm makes their individual forecasts with respect to their operations. Then there are firm based forecasts made by combining these little pieces to form the bigger picture

4. Deductive Method

This is basically the reverse of the Bottom-Up Method. There is a forecast made on an industry/firm-level and that is trickled down into branches of different business processes.

Let Us Know?






    What We Offer You?

    Respect for timelines

    At DigiAge Media time is our inventory and more than we value our time, we value the time of our clients. On time delivery is our strong suit.

    At DigiAge Media time is our inventory and more than we value our time, we value the time of our clients. On time delivery is our strong suit.

    Professional & Dedicated Team

    A dedicated and skilled team of Subject Matter Experts who are motivated to bring out the best possible outcome.

    A dedicated and skilled team of Subject Matter Experts who are motivated to bring out the best possible outcome.

    24*7 Support

    We are workaholics and we believe that work transcends day and night barriers. Our founders strongly believe that opportunity can knock any time and so can a customer or client.

    We are workaholics and we believe that work transcends day and night barriers. Our founders strongly believe that opportunity can knock any time and so can a customer or client.