Why is Demand Forecasting Important for Entrepreneurs?
For entrepreneurs, demand forecasting is essential for several reasons:
Resource Allocation: Proper forecasting allows entrepreneurs to allocate resources effectively, ensuring that they do not overproduce or underproduce. Inventory Management: Accurate forecasts help in maintaining the right level of inventory, reducing holding costs and avoiding stockouts. Cash Flow Management: By predicting demand, entrepreneurs can manage their cash flow better, planning for periods of high and low demand. Market Strategy: It guides marketing and sales strategies by identifying peak seasons and customer preferences.