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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