Conclusion
This chapter should have demonstrated that the spreadsheet work required for forecasting is remarkably simple. Rulers only produced what might be regarded as a central forecast (depending on what you know about the environment). The variation on the trend above could be looked upon as a best-case scenario. A little thought and a few more keystrokes would give the worrying worst case. Of course, these are quantities. The thing to do now is to convert them into a bottom line in money terms – which is what we do in the next few chapters. This is where estimating will come into play.
Presenting a forecast
Describe background.
Specify key assumptions.
Explain basis for forecast (projections, rules of thumb, cause and effect).
Preview the key ...
Get The Definitive Guide to Business Finance: What smart managers do with the numbers, Second Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
