Sales forecasting is such an important part of business planning. What exactly is sales forecasting? It is a prediction/forecast of sales based on past
sales performances and an analysis of future market conditions.
Most businesses perform some sort of forecasting to predict how their business will grow and how they should direct marketing efforts in the future. Established businesses can use past sales figures to predict the upcoming seasons or annual sales. If an owner is in the market for a new
venture, they can use sales forecasting as a key element to their business
Business owners will need to determine how sales are calculated
for their industry. For example, medical professionals are paid by billable
hours, while restaurants and retailers are based on sales per square foot.
Here are a few benefits to businesses
to using sales forecasting:
ROI-Return on Investment
When predicting future sales, take
into consideration external factors that can affect sales outcome:
Economy-In tough times, gear your product or service to a need
compared to a luxury.
retail industry typically has better sales after the Labor Day holiday.
Competitors-If the competition is offering an
outstanding product at a great price-this will affect future sales. Change
your target and focus.
The Small Business Administration can assist businesses with
research. One calculator to use might be: number of customer’s x frequency of
purchases x dollar amount of the sale.
Calculate all numbers to project
yearly sales for the target market. Any future sales predictions should be
based on research and data rather than guesses.
Performing a sales forecast will provide businesses with an
analysis of prior and present sales as well as provide a comparison to industry
averages. Sales forecasting is an assessment tool for businesses.
The direction of any company may rest
fully on the accuracy of the sales forecast. Use all available resources for
What do you predict for sales in 2019?
Do you need help reaching your forecasted goals? Contact the experts at Rich
Enterprises Inc. We have a seasoned team of professionals that want to help you
grow your business!
Since 1999, we have helped business across the USA and Canada reach their sales goals. We offer a suite of lead generation, telemarketing and inside sales services, that delivers the magic recipe to ensure your success!
Rich Enterprises, Inc. was founded in 1999 on the premise that businesses must always seek new revenues and opportunities in order to succeed. Our core mission is to increase the sales and revenues of our clients by providing qualified sales leads and new appointments through cold calling, B2B telemarketing, business development, and inside sales services. Our business is growing your business!