Learn about the goal of forecasting and how companies use it to project growth.
- So, imagine that you've started up a sporting goods store.…You've bought the inventory, hired the staff,…put up banners, and fired up that big neon sign.…On opening day, in comes the crowd.…Tennis rackets flying off the walls,…running shoes out of stock,…protein powder supplement selling beautifully,…what a great scene for day one.…You should be super happy with your marketing campaign.…But, what's going to happen on day two,…day 20,…day 200,…day 2000?…Your business needs to be able to look ahead…and plan for the future.…
This is where forecasting can help.…Looking ahead to see what future expenses…and revenues could look like based on past trends.…Forecasting, however, is a pretty risky business.…Any time you deal with the future…your predictions involve a great deal of uncertainty.…Winston Churchill once said, "It's always wise…"to look ahead, but difficult to look further…"than you can see."…That definitely holds true about forecasting.…Because so many assumptions…go into creating financial forecasts,…there's always a risk that they won't be accurate.…
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.
- Explain the four different types of financial statements.
- Distinguish between the types of moving averages.
- Determine a seasonal adjusted trend.
- Break down pro-forma financial statements.
- Identify cash flows, and what increased liabilities and decreased earnings generally indicate.
- Tell what a regression is.
- Outline the naive approach.