课程: Financial Modeling and Forecasting Financial Statements

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Keys to running a business

Keys to running a business

课程: Financial Modeling and Forecasting Financial Statements

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Keys to running a business

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- Running an organization without the benefit of any financial forecasts is a very exciting exercise. From one day to the next, you have no idea what's coming. Every morning, you wake up to a whole new collection of surprises. Now, that's one way to run an organization. A different way is to spend some time carefully constructing a numerical plan, a financial model, a forecast. Yes, there'll still be surprises, but you'll have the model, the plan, the forecast within which to adapt to those surprises. A careful financial model is simply a numerical plan of a business's activities made in advance that helps a business identify and solve problems before those problems ever actually arise in the real world. Now, think about a company that's been around for a long time. Let's use General Electric as an example. They've been around since 1878, when Thomas Edison started the Edison Electric Light Company. Now let's…

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