Anticipatory Details

Anticipatory refers to how much of something a business expects to make after they've completed a project or service. For example, business owners usually have set expectations of how much profit they'll make during a production run. This helps the business plan its material costs, salaries, and any other expenses that go into manufacturing a product or a service. Most of the time, when a project doesn't result in the business's anticipated profit, they'll discontinue the project. It's not worth the money.

Anticipatory can also refer to an anticipatory business model. This business model promotes a sense of, "Don't put off until tomorrow what you can do today." Any traditional workflows or preparation for an event is completed before they happen. It can also refer to operating a business—or developing products—based on the anticipated needs of consumers.

Anticipatory Example

.Dylan's Club is an electronics company that follows an anticipatory business model. Because of this, the company is always one of the first to release new electronics. The company is now looking at its 2022 manufacturing year and planning new products. However, management looks at its 2021 year to see how their current products are holding up first.

At the beginning of 2021, they anticipated making at least $500,000 off of their new graphing calculator. Unfortunately, they missed the mark on their projections by $200,000. Their headphones, on the other hand, performed incredibly well, exceeding expectations. Dylan's Club concludes that they will discontinue the calculator and sell a new, updated version of their headphones.

Dylan's Club's new anticipatory profit from headphones for 2022 is $750,000, less than 2021's anticipatory profit. They believe the headphones will still do well, but because people are now returning to the office and need less home office equipment, they won't be in such high demand as they were.

Anticipatory vs. Forecast

The difference between these two terms is a little tricky to work out, but if you consider one as active and one as passive, it should help. Anticipatory is the active of the two. You are anticipating something and reacting accordingly. Forecast, the passive, is simply to predict or project the future state of things.

You can certainly anticipate a forecast. If the market forecast for cryptocurrency is grim, for instance, you can anticipate that your stocks in cryptocurrency agencies will drop. To prepare for this, you sell your shares immediately. You are acting on forecasted knowledge.

Anticipatory vs. Waiting

Again, another active and passive pair. When you anticipate something, you are ready for it to happen. You've prepared. Waiting doesn't necessarily imply this. Waiting only means that you are expecting something to happen, but are more concerned about the passage of time than preparation.

Very rarely will you see a business model that operates on "wait and see." Competitive businesses don't wait. They anticipate. To better illustrate it, think of a soccer goalie. They bend their knees, stand in the center of the goal, and keep their hands at the ready. They don't just stand there waiting for an offensive player to kick the ball at them. They anticipate moves and prepare for it.