What role does financial forecasting play in strategic planning for growth?
Without accurate forecasting, strategic plans lack feasibility and direction.
Importance of Forecasting:
Revenue Projections: Help estimate future cash inflows.
Cost Analysis: Identifies fixed and variable costs under growth scenarios.
Capital Requirements: Determines funding needs for expansion.
Scenario Planning: Tests strategies against best/worst-case financial outcomes.
Strategic Insights:
Aligns investment with expected returns.
Minimizes cash flow risks.
Supports investor confidence.
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