“A company’s future often is dependent on a business projection derived from diligent and objective-directed gathering of competitive data and market intelligence,” write Zane N. Markowitz, Brian Sullivan, and Andy Smith (McLean Group) in NACVA Ambassadors’ QuickRead. The authors describe seven processes that should be considered when creating and analyzing a forecast:

• Time and involvement
• Management’s track record
• Identify and analyze key value and cost drivers
• Understanding key performance indicators
• Compare performance to industry
• Know industry competitors
• Know customers’ needs

For more details on each process check their article “Keys to Creating a Sustainable and Productive Financial Forecast.”