Abstract

Business forecasting refers to the tools and techniques used to predict developments in business, such as sales, expenditures, and profits. The purpose of business forecasting is to develop better strategies based on these informed predictions.  The use of forecasts in business management is indispensable for nearly every decision in every industry. The use of business forecasting provides information that helps business managers identify and understand weaknesses in their planning, adapt to changing circumstances, and achieve effective control of business operations. Some business forecasting examples include: determining the feasibility of facing existing competition, measuring the possibility of creating demand for a product, estimating the costs of recurring monthly bills, predicting future sales volumes based on past sales information, efficient allocation of resources, forecasting earnings and budgeting, and scrutinizing the appropriateness of management decisions.