Forecasting is one of the main tools needed to operate a successful business. In my own words, forecasting helps businesses "predict" demands for goods or services, therefore enabling proper planning and execution of the operation. If a company knows they will need 1,000 roses for Mother's day, for example, they can pre-order the adequate amount of roses, as well as have enough staff on hand to manage sales. Forecasting is often done from a reflection of a previous year, where managers can analyze sales, profit and loss to plan for the next time. According to our text, Chapter 4, there are 2 types of forecasting, Economical and Technological. Economical forecasting relates to the economic impact on a business in regards to inflation, money supplies and planning indicators. On the other hand, technological forecasting relates to advances in technology which can improve business. Overall, forecasting helps to prepare a business in all aspects.