Business Sales Forecast
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Transcript of Business Sales Forecast
Estimating Sales
www.business.govt.nz
Sales forecasting is used…
- To inspire investor confidence
- To test viability- To judge on-going business
performance- To manage special projects…plus many other uses
www.business.govt.nz
Step 1:Find performance figures for the same trading period last year and use them as a benchmarkApply forthcoming internal and external influences to them to estimate future performance
Estimating sales based on a sales history
www.business.govt.nz
Internal influences can be…
- Staff shortages- Product promotions- Limits to manufacturing
capacity- Changes to processes
www.business.govt.nz
- Economic conditions- Regulation changes- A new competitor joining
the market- Another going under
External influences can be…
www.business.govt.nz
Estimating sales based on a sales history
Step 2:Multiply the units sold estimate by the individual unit price
www.business.govt.nz
Estimating without a sales history
Many entrepreneurs find an external benchmark to act as their “sales history” when forecasting sales for a new business
They use a competitor’s published figures, benchmarking surveys or seek advice from experts, accountants or even consumers
www.business.govt.nz
Estimating without a sales history
Others, requiring more specific analysis, carry out their own, in-depth research.
Canvassing target consumers on spending habits and frequency is often vital to this process
www.business.govt.nz
Estimate scenarios
Many businesses use best-case and worst-case scenarios to find more accurate middle-ground figures for their final estimateOverly-optimistic forecasts can encourage financial risk, while excessively-conservative ones exaggerate performance
Find Out More
Facebook.com/business.govt.nzTwitter.com/business_govtNZLinkedin.com/company/business-govt-nzSlideshare.net/MED-Business business.govt.nz