Sales forecasting is one of the time consuming and difficult stages in writing a business plan.
This can become even more difficult when it is your first time to write a business plan and you do not have any previous sales to guide you. Sales forecasting methods are one of the key features to the success of your business.
It is very important to develop your business reports and goals so that you have something to turn onto if things went wrong.
The first sales forecasting method in a business plan is identifying your market. Begin with searching your competitors in the same geographical base with the same customers.
Find out how big is your market and make sure that you will gain huge revenue margin by the end of the year. When you have identified your market and which customers needs your products and services you can now go straightforward to preparing your sales forecast.
For new business there are three basic features for sales forecasting method. The first method is to do the market based strategy.
This method will let you focus on your competitors in the same geographical location or around you.
For example you have to measure the numbers of households around you which will consider your product rather than your competitors. For example, put a list of customers who will buy your product in one mile.
Additionally, find out those people from four miles and beyond which can be a possible customer.
Value based is the second sales forecasting method that can be best for you. You have to calculate the total value of what your business is opting to sell.
Creating a business chart will help you track your business plan efficiently. You should always create a business chart which will evaluate and illustrate the projected numbers of your business. In this way, you can clearly see your goals and it can help you as motivation to generate more sales.
Measuring the maximum revenue of your business is yet another sales forecasting method. Determining the maximum value of revenue of your business from your present resources will help you sell all the products that have lower sales.
In addition, this can also become an indicator to your investors on how are you going to produce sales in case of limited resources.
To keep track on your business sales do not just do one sales forecast. Use different sales forecasting method which is mentioned above to generate multiple figures which are; realistic, optimistic, and pessimistic. Put all the figures by month depending on the type of your business.
Also, in creating sales forecasting do not forget to include the expenses. It is best to put all your expenses by month including those big purchases you make.
Also include all the expenses you made related to your business which can be gas, utility bills, materials for inventory, and etc.
Calculate the total amount of your expenses them subtract it to the total figure of your forecast. Through that you can clearly see if your business is earning revenue.
To date, there are plenty of application and program available for sales forecasting methods. However you want to do your business forecast it is important that you do them to track where you stand and avoid bankruptcy.