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Sales Forecasting For New Business |
by:
Ben Botes |
Sales forecasting is the process of organizing and analysing information in a way that makes it possible to estimate what your sales will be. This Micro Module outlines some simple methods of forecasting sales using easy to find data. Books containing simple and sophisticated techniques of forecasting sales can be found in libraries and business oriented book stores.
If you sell more than one type of product or service, prepare a separate sales forecast for each service or product group.
There are many sources of information to assist with your sales forecast. Some key sources are: Competitors; Neighbouring Businesses; Trade suppliers; Downtown business associations Trade associations; Trade publications; Trade directories;
Factors that can affect Sales can be divided into external and internal influences. Examples of these are:
External:
Seasons; Holidays; Special Events; Competition, direct or indirect Competition, External labour events; Productivity changes Family formations; Births and deaths; Fashions or styles; Population changes; Consumer earnings; Political events Weather
Internal:
Product changes, style, quality; Service changes, type, quality; Shortages, production capability; Promotional effort changes Sales Motivation plans; Price changes; Shortages, inventory; Shortages/working capital; Distribution methods used Credit policy changes; Labour Problems
Creating a sales forecast can be divided into four steps.
Step 1
Develop a customer profile and determine the trends in your industry.
Make some basic assumptions about the customers in your target market. Experienced business people will tell you t | |
