Forecasting is an essential aspect of every business as it plays an integral role in decision-making across varied departments, be it financial or managerial. To facilitate forecasting in business, data analysis and predictive modelling is carried out. For those studying Business Management courses or degree programs in Finance, Business Forecasting is an imperative subject in the course curriculum. With the help of business forecasting, efficient strategies, as well as financial management, is ensured which further helps the company steer towards a better growth curve. Thus, every business firm needs professionals who have expertise in business forecasting and can assist in assessing large chunks of data for predictions and risk analysis. This blog brings you a detailed guide on what business forecasting is, why is it needed as well as the various courses you can pursue to make a promising career in this specialisation!
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What is Business Forecasting?
In simple terms, It carries out the predictive or project analysis for the future based on analysis of the past and present data and trends. It is concerned with profits, business expenditures and sales. Our global economy is always dynamic and going through many changes which also radically affects businesses and their future goals and plans. Given all this, it is unsurprising for companies to include business forecasting as a major tool for planning. This has made it indispensable for the corporate sector to forecast different economic conditions before so as to take advantage of it or formulate plans to counter the upcoming economic challenges.
What is Forecasting?
Forecasting is a method to build a plan considering the future uncertainty and risk in business. The plan is to maintain the budget and finances. Forecasting helps to determine the allocation of finances based on the product demand.
Business Forecasting Importance
Careful forecasting helps in the achievement of complete and effective control over a business. Here are some of the reasons why forecasting is considered important by most companies in the present day:
- It can reduce risks associated with a business by eliminating guesswork.
- Accurate forecasting can help in understanding future performances
- It assists the higher-level management in making better informed managerial decisions
- Forecasting makes it easier for companies to adjust to changing markets, thereby reducing damages.
Types of Business Forecasting
Business forecasting can be categorized into three types. General, Sales, and Capital forecast. Let’s explore these in detail:
- General Forecasting: Business is uncertain and there are million factors affecting the growth of any business. General forecasting includes the future uncertainity and possible changes
- Sales Forecasting: Sales is related to the profits and net worth of the company. It helps to determine the plan in motion to drive more productivity and results
- Capital Forecasting: It is important for every organization to evaluate the business fianancial plan. Capital is mandatory to fulfill all the necessities. Forecasting helps to optimise the capital without any risks
While studying Business forecasting, you will get to learn about various methods and techniques to facilitate predictive analysis and come up with efficient strategies to ensure profit maximization in any business. Here are the major components you will get to study:
- Qualitative Forecasting Methods
- Forecast Process, Data Considerations, and Model Selection
- Moving Average and Exponential Smoothing
- Forecasting with Regression Methods
- Forecasting with Multiple Regression
- Time-Series Decomposition
- Box-Jenkins Methodology
- Forecasting of Dynamic Behavior of Economic and Financial Time Series
- Combining Forecast Results
- Implementing Forecasting
Business Forecasting is generally included as a course module in business and management degrees as well as programs in Finance. As an area of study, it is still sprouting into a full-fledged specialisation thus students generally get to study it in bachelor’s and master’s degrees in Finance, Business Administration and Management. If you are inclined towards this specialisation, here are the top courses which include the study:
- BSc in Financial Economics and Econometrics
- BSc in Business Administration – Financial Wealth Management
- BSc (Hons) Management and Business Analytics
- BSc in Applied Economic Management
- Bachelor of Business (Economics, Finance and Trade)
- BSc in Economics – Economic and Business Forecasting
- BSc in Finance – Investment Analysis
- BSc in Economics and Computational Analysis
- BSc in Investment and Financial Risk Management
- MSc in Financial Risk Management
- MSc in Finance – Investments and Portfolio Management
- MSc in Business Analytics/ Master of Science in Accounting
- MSc in Financial Forecasting and Investment
- Masters in Business Analytics
Want to pursue one of the aforementioned courses in this field? Here are some of the popular universities around the world offering these programs in Business Administration, Analytics and Financial Management:
- Tufts University
- Rice University
- University of Manchester
- California State University – Northridge
- University of Delaware
- University of Wollongong
- University of Canterbury
- University of Leeds
- University of Nottingham
- Michigan State University
- Hofstra University
Economic and financial sectors churn out ample job opportunities for professionals wanting to build a career in this field. Here are some of the career prospects that you can look forward to after completing a course in this field or its related domains.
- Business Planning Manager
- Forecast Analyst
- Business Analyst
- Business Research Analyst
- Business Consultant
- Operations Manager
Business Forecasting PPT
Thus, we hope that this blog familiarized you with the essential basics of business forecasting as well as the career scope it entails. Unsure about the right business school for your chosen course? Our Leverage Edu experts are here to guide you in selecting the best university as per your requirements and aspirations! Sign up for a free session with us today!