Wednesday, 21 November 2012

The benefits that can be gained from sales forecasting

So,  you are thinking of starting a small business and you need to know some basic things whether you are starting your business at home or at a place you are renting to run it.

Today I want to share some tips on sales forecasting because it is critical from a management and a sales point of view. A lack of history makes it challenging for business start-ups to estimate a figure.
Having accurate sales figures are the most important steps in developing your cash flow forecasts.
You need to know how much you plan to sell in the next 12 months in order to plan how much to spend.

Developing a monthly sales forecast:
To manage your business efficiently, you need a detailed monthly forecast.

Step 1. Look at the projected sales for the year and record the assumptions on which they are based
Step 2. Projecting a trend or a Growth curve.

Project a plausible growth curve , include any events planned or otherwise that may contribute to, or detract from your sales potential.
Do a quick draft of your first year in business. Do not think about actual sales numbers, think about the events and influences that will shape your business in the first 12 months. Remember to include the time it will take you to build sales, seasonal influences, special promotions, and when you can expect results from ads and your own sales efforts. 
  • Will December be better than March
  • Will back to school create income for you
  • Do you plan to attend a major conference in June
  • How long until you make your first sale
  • Will sales rise quickly, or will your business require more time to grow/
If your product or service sales ebb and flow between Spring and Winter so will your income.

I hope this helps you with your start-up. Thank you for stopping by.
Author: Marsha Anderson

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