Why do businesses spend time, effort, and money to produce forecasts?

To make a successful strategy for business developement, supplier developement,identify opportunities,set goals/targets,to plan investments etc.

Simply

Good forecasts = good  planning  = less risk = good profits

Businesses succeed or fail depending on how well prepared they are to deal with the situations they confront in the future.  Therefore they expend considerable sums making estimates (forecasts) of what the future situation is likely to be.  Businesses develop new products, set production quotas, and select financing sources based on forecasts about the future economic environment and the firm's condition.  If economists predict interest rates will be relatively high, for example, firms may plan to limit borrowing and defer expansion plans.

Forecasts set the tone for right planning for aimed results. 

A clear forecast defines your success in business. You can well prepare for all ups and downs, be on a safer side by minimizing the costs and reap the benefits by utilizing all the opportunities and make meaningful what a business is and to be.

In the present time all companies are looking to the future to face any problem may be take place . By studying its market, competitors . etc .....

 • Marketing people need forecasts to determine which new products or services to introduce or discontinue; which markets to enter or exit; and which products to promote

• Salespeople use forecasts to make sales plans, since sales quotas are generally based on estimates of future sales

• Managers in the supply chain use forecasts to make production, procurement, and logistical plans

• Finance professionals use forecasts to make financial plans. They also use them to report to Wall Street about their earnings expectations

Because it's part of planning , to avoid any problem may appear in the future and put suitable solution for it . 

If you face any challenge in the work you expected ,  Would not be  and surprised and you will have a ready plan to deal with it , and in this case you will save money , time and effort

Forecast give us guidance toward Success. 

Every Businessman need more return with limited risk so he plans on the basis of forecast. 

Forecast is very important for Business Planning. 

Business sustainability depends on forecasting as profit and loss for that reasons owner pay time, effort and money.

I agree with the majority of the answers.

 

Anyway, the forecasts reduces the risks ... this is the main reason