Business Planning: Sales Forecast
by Tim Berry, Guest Blogger
- Created: February 12, 2010, 12:21 am
- Updated: December 12, 2011, 8:14 pm
Your sales forecast is the backbone of your business plan. People measure a business and its growth by sales, and your sales forecast sets the standard for expenses, profits and growth. The sales forecast is almost always going to be the first set of numbers you’ll track for plan vs. actual use. This is what you’ll do even if you do no other numbers.
When it comes to forecasting sales, don’t fall for the trap that says forecasting takes training, mathematics or advanced degrees. Forecasting is mainly educated guessing. So don’t expect to get it perfect; just make it reasonable. There’s no business owner who isn’t qualified to forecast sales — you don’t need a business degree or accountant’s certification. What you need is common sense, research of the factors, and motivation to make an educated guess.
About the Author
Founder and Chairman of Palo Alto Software and bplans.com, on twitter as Timberry, doing social media business planning at smbplans.com, and blogging at timberry.bplans.com. Stanford MBA. Married 42 years, father of 5. Author of business plan software Business Plan Pro and www.liveplan.com and books including The Plan As You Go Business Plan, published by Entrepreneur Press, 2008.
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