The vast majority of businesses manage their operations according to a plan. That plan may be as simple as an entrepreneur writing down a few goals on a napkin, or as complex as a massive set of instructions covering the day to day, month to month, year by year, or decade by decade actions required to maximize profits. However complex the plan may be, it will guide the business’s use of its capital for future growth. This entire process is dependent upon the extremely difficult practice of forecasting.
Kendall J. Anderson, CFA