Essentials Magazine Essentials Fall 2018 | Page 6

FORECASTING How to Build a Solid Forecast BY BOB STIMOLO A ccurate forecasts are important to run- ning a business efficiently. If your fore- cast is too high, more money is invested in having products (or services) available to meet the anticipated demand than is necessary, reducing the company’s profitability. On the other hand, if the forecast is too low, there is 6 essentials | fall 2018 not enough product (or service staff) to fulfill orders resulting in delayed shipments, cancelled orders and unhappy customers, again affecting the company’s profitability. Yet, forecasting can be challenging, especially in the education mar- ket. Here are some thoughts that might make forecasting for your company a little easier.