Living for the moment is not always a good plan, especially if you’re in business. Many business leaders acknowledge the importance of planning for the future to stay ahead of the curve—or in two, simple words: Future Casting.
Some even consider it as their secret sauce for success. Take Jeff Bezos as an example. In his interview with David Rubenstein, he mentioned that all of his senior executives operate the same way he does.
“They work in the future, they live in the future,” Bezos said. “None of the people who work for me should be focused in the current quarter. When people congratulate me and say, ‘Congratulations on your current quarter,’ what I’m really thinking is, that quarter was baked 3 years ago.”
Why, then, is future casting so important in ensuring the success of a business? How can your business benefit from it?
Before we answer those questions, let’s first define what future casting is.
What is Future Casting?
Future casting means predicting things that will have a significant impact on your business in the future. Every business leader or business organization have their own set of techniques when it comes to future casting.
You can start by researching important indicators such as the trends in your industry, or the market growth rate. You can also study the behavioral shifts of your current and potential customers.
In-depth research is crucial in future casting. You have to have the right data on your hands to make the right predictions. Once you have those, the next step is assessment.
Envisioning what-if scenarios is what comes after. Future casting, by the way, is also known as “scenario planning.” You can go all out with this one. Imagine every problem that can cause your business to fail.
After you’ve made your list, you can now create an iterative strategic plan or roadmap in solving those problems. From time to time, you or your team must peak into those plans to make certain adjustments.
What are the Benefits of Future Casting?
Better Business Direction
Future casting will help you be intentional about where your business is heading. You can get from point A to point B with much efficiency rather than running a business willy-nilly. You can determine how your business will grow, which path to take, which talents to tap, or which tools your business needs to help you achieve future endeavors.
Overcome Short-Term Setbacks
Setbacks are part of every success process. While it’s true that you can’t predict all problems that you will encounter when running a business, future casting will help you be proactive rather than reactive when handling setbacks. You’ll be less likely to get caught off guard when a problem arises. And because you’ve prepared for it, you can even turn that problem into an opportunity.
Innovation is inevitable in business. Businesses that prioritizes innovation beats the competition and will remain relevant. Understanding the future needs of your business will help you innovate better. It will help you improve your products or services and boost operational activity, too. Innovation is not just for shiny new startups. Antiquated businesses should embrace innovation as well. It’ll keep your business fresh and will help you stand out from the rest.
Reality check: businesses cannot continue to run without turning a profit that’s why profitability remains to be high on the priority list of all businesses. But it’s not just enough to turn a profit. Eventually, you will aim for a boost in profitability. Future casting can help you increase your revenue while decreasing your operational costs by having the right plan in place.
In the business world where competition and innovation increase rapidly and dramatically each year, future casting is one of the best ways to ensure that your business will thrive in the future. It is also crucial to understanding the health of your business today. No one can fully predict with 100% certainty what lies ahead. But you can prepare for certain future scenarios that can help make or break your business.