Business management tool boost up the performance of business and keeps everything to run smoothly. One of these important business tools is sales Forecast. Every business uses this tool to measure their progress and check if everything is going as planned or not. Sales Forecast is not easy to make if you do not know the important points related to it. WE have some of the best Sales Forecast template which will help you out in making a suitable plan for you. These templates are available in many formats including PDF, Word and JPG files. You can download or print these templates based on your requirement.
What are sales Forecast?
A sales forecast refers to the prediction about the sales volume that a business experiences during specific period. It is an important tool as it helps in making a plan for all the activities required in business. The companies look for accurate sales forecast to understand how the financial plans must be prepared or executed. In case of the wrong sales forecasting, the business may face crisis.
In short, a sales forecast has the power to break or make a business. So it is necessary to be prepared for all the hurdles which can affect the sales forecasting.
Sales Forecast template
Factors affecting Sales Forecasting
Lack of sales history
Sales forecasting is based on historical data available. Business makes predictions by analyzing the previous results of the company. The newly built business will lack in sales history and hence the possibility of accurate sales forecasting is less. However, the old business will have good sales forecast with accurate results.
The type of business
Every business and industry has their own challenges. The factors affecting the business’s revenues will also be different and unpredictable. So sales forecasting for certain business will be difficult.
12 Months Sales Forecast template Excel
An unpredictable event can create difficulty in providing accurate sales forecast. At some point, everything was going as planned for a company but suddenly it faces the events which are uncontrollable for them. One of these factors would be fall of courser’s earning as it may resist them from spending.
Some businesses change their prices and payment structure suddenly due to internal reasons. This change creates the unpredictable effects and at this moment the old sales forecast prediction will be useless. The company will need to change their plan.
Daily Sales Forecast Format
Benefits of sales forecasting
Sales forecasting comes with many advantages for the business. I know many people want to know why sales forecasting should be established. So here are some of the benefits which will a good reply to this question.
Perform accurate financial planning
This prediction helps the financial team of the company to understand how much cash is required to build up the business. The investment is vital in business and if you have understanding of how you can use the capital then it is best for you. Apart from this feature, sales forecasting can help them in calculating the profit they can expect in given period.
Plan sales activities
Sales planning are necessity of a business. The executive uses sales forecasting for planning how many employees in certain section they require. It means that sales forecasting can help the salesperson to understand the need and target in a right direction.
Sales forecasting is helpful in marketing as it has big impact on the sales. It might show that sales are declining and the business requires big investment. Also, it will show that product or service is failing enhance the profit of the business. It will be a helpful step for the business to work in the direction of success.
Inventory management is one of the most crucial sections of a business. Sales forecasting give a better understanding to the business of how much inventory is required to retain or purchase. It will make a balance between out of stock and overstock situations. Also, it may help the companies win providing better customer support and success.
Avoid fluctuations in price
Maintaining pricing of products and services is mandatory for the businesses and accurate sales forecasting will help you out. If a business has poor sales forecasting then business may be forces to adjust prices instantly. This step may result in difficult situation for business as it lacks in proper strategy. Sales forecasting increases the profitability of the business.
Forecasts are crucial for the success of the business. But businesses require many forecasting tools for converting the leads into sales. Not everyone knows about creating a good sales forecasting for their business. The sales forecast template provided above will make your day.