Sales forecasting is such a valuable element of business planning. It is the underlying plan of all plans!
This is so because when sales forecasting is done right it can enable the business owners or managers to:
- be comfortable when making business decisions
- course correct without taking too long
- plan for risks
- take on a proactive approach to achieving the business’s targets.
But how do you predict what can happen in the next quarter or the next 12 months? And do it with accuracy?
A generally accepted method of doing your sales forecasting is by looking at your history. This is where you analyse your business performance in the past year and base your predictions on it.
What can go wrong in your sales forecasting?
Two scenarios come to mind.
- Being overly cautious with your sales forecasting
- Aiming too high in your sales projections.
I go into more detail about these two common problems in sales forecasting in the video below. You’ll learn why being too ambitious or too pessimistic when estimating your future sales can take its toll on your business. And, I share my preferred way of doing sales forecasting. So click the play button to watch it.
Conclusion
Sales forecasting done right ensures maximum accuracy – although we can never 100% predict the future. But, by using the advice I give (based on plenty of years of experience), you can make informed decisions and go after your goals.
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