As we gather around the table this Thanksgiving, let’s reflect on the many things we’re grateful for: family, friends, good food, sports, the bottomless basket of rolls and a cold garage filled with pie. Along with those things, the Fullcast work family is thankful for the people and opportunities that allow local businesses to thrive.

Just as green beans taste better with crunchy onions, stuffing is more dreamy with loads of butter and the cauliflower casserole is best forgotten in the microwave, there’s a critical ingredient that can help companies create a successful year ahead: forecasting.

For many, Thanksgiving is a time to plan ahead for the season. Forecasting is like that for business. Forecasting tools and formulas predict future trends, allocate resources efficiently and avoid financial pitfalls.

In this season of gratitude, let’s explore the five gifts of forecasting that help businesses harvest the rewards of sound financial planning and prepare for a prosperous future.

1. Reap the harvest of efficient inventory management. Before the last potato is dug, golden apple picked and pumpkin chunked, farmers are already planning for next year’s crops. They know how much to plant, when to harvest, and the market demand. For businesses, planning with forecasting helps anticipate future demand for products and services and prevent inventory overstocking or understocking.

The proper inventory is crucial since too much stock ties up cash in unsold goods while too little results in lost sales. Effective inventory management can save a company up to 30% in reduced carrying costs or inventory holding.

Like estimating the number of rolls for the Thanksgiving meal, accurate forecasts help businesses ensure they’re ready for the busy seasons without overburdening their balance sheets with unnecessary inventory.

2. The gift of predictive insights. Imagine trying to plan a Thanksgiving feast without knowing how many guests you’ll have. You might end up with too much turkey or too little pie, leading to waste or disappointment. The same can happen in business when you don’t know how much of a product or service will be needed.

“Forecasting is a powerful tool for saving money by helping businesses anticipate future needs and trends, which allows them to make more informed decisions,” said Megan Ross, SEO director at Fullcast. “By predicting sales trends, businesses can adjust marketing efforts and staffing levels accordingly, preventing unnecessary expenses and maximizing ROI.” This proactive approach can prevent financial stress when unexpected costs arise.

3. A secure financial cushion. Did you know mashed potatoes are the second most popular food item on the Thanksgiving table? Thanksgiving reminds us of the importance of having enough food to last through the holiday season. Businesses also need to be prepared for potential financial challenges ahead. Forecasting helps companies anticipate cash flow fluctuations and plan accordingly.

“Forecasting also helps businesses spot potential risks early and respond with cost-saving measures before issues become costly problems,” Ross said. Companies can build up a financial cushion by predicting periods of slow sales or unexpected costs. This foresight allows businesses to avoid the strain of having too little cash on hand to cover essential expenses. A solid forecast provides peace of mind, ensuring companies are prepared to weather any storm even during lean times.

4. A golden opportunity for marketing. The holiday season presents a golden opportunity for businesses to capitalize on increased consumer spending. But how can companies know when to launch a marketing campaign, offer discounts or stock up on unique products?

“Automation is really key in go-to-market forecasting,” Ross said. “To compete in this space, companies need an integrated platform that streamlines revenue operations, automates the forecasting process and leverages data-driven insights to offer accurate and real-time projections. Our SEO and revenue operations (RevOps) teams look at historical data, algorithmic analysis, market trends and targeted business metrics to help guide future performance, set realistic sales goals and help optimize resources for promotional budgets.”

Forecasting helps businesses anticipate demand surges, allowing them to tailor their marketing efforts to maximize sales during peak seasons.

5. A grateful heart for managing risks. Life is unpredictable, and so is business. However, with proper forecasting, companies can find comfort in anticipating and mitigating risks affecting their financial health. Forecasting enables businesses to plan for various scenarios, whether it’s an economic downturn, shifts in consumer behavior or regulatory changes.

By identifying potential risks in advance, businesses can make informed decisions to minimize the impact, just as you might prepare your home for winter storms. This proactive mindset can help companies emerge stronger and more resilient, even in adversity.

Like a well-planned holiday feast, accurate forecasting ensures that businesses have the right ingredients for success, whether that’s optimal inventory, healthy cash flow or strategic marketing.

By using forecasting to anticipate future needs and trends, businesses can make more informed decisions, avoid unnecessary risks and prepare for a future filled with growth and prosperity. So, as you carve the turkey and share a toast with your team this season, be sure to give thanks for the power of forecasting — and the financial rewards it can bring to your business.

J’Nel Wright is a content writer at Fullcast, a Silicon Slopes-based, end-to-end RevOps platform that allows companies to design, manage and track the performance of their revenue-generating teams.