Long-term forecasts will include such things as economic peaks and troughs, inflation and politics. Once you’ve created yours, it’ll help you to think outside the box when issues arise. It’ll help you build your business to the point it can withstand these changes.

Long-term forecasting helps with long-term growth

To grow sustainably, you need a deep understanding of your figures and a healthy cashflow. Projecting the coming years is going to help you prepare for growth.

Perhaps you need some funding, for which you need to show accurate projections. Forecasting models can calculate your likely earnings for up to 10 years based on historical data and real-time information.

Maybe you’re taking on new premises, hiring a new member of staff, or investing in some new kit. Whatever it might be, you need to know you’ll see a return. Forecasting long-term is the way to see a clear view of the future.

Add scenarios to see alternative futures

Using a scenario planner will give you more flexibility with your decisions. When you’ve created your long-term forecast, you can add a base scenario with best, middle and worst case results.

In the long-term, you could plug data such as inflation, or political changes, therefore giving you an idea of what could go right or wrong. Things can change with no warning at any time, so having contingency plans in place will really help.

Get a competitive advantage

Forecasting can also take your business from being good to great. If you think about who your competitors are, and feel they always seem to be one step ahead, the chances are they’re forecasting their figures.

You can easily overtake their lead by using a forecast, as each decision you make will be well thought out and made with confidence.