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Unformatted text preview: al customers, projected dollar sales, meals served, website projects, tax reporting hours, yards
to landscape, or whatever you have. CHAPTER 11: FORECAST YOUR SALES Forecasting is more art than science. Don’t fear—it isn’t as hard as most people think. Think of your sales
forecast as an educated guess. Forecasting takes good working knowledge of your business, which is much
more important than advanced degrees or complex mathematics. Whether you have business training or not,
don’t think you aren’t qualiﬁed to forecast. If you can run a business, then you can forecast its sales. Most
people can guess their own business’ sales better than any expert device, statistical analysis, or mathematical
routine. Experience counts more than any other factor. Developing a Sales Forecast
If you’ve been following along with this book, you’ve been through some Internet sites and other
information sources to know your customers and your industry. You’ve probably been thinking about
your sales forecast while you went through that information. The research for a good forecast is
almost always harder than the ﬁnal process of actually making the detailed educated guesses. You’ve
probably already done the research.
When the research is already done, the mechanics of sales forecasting are relatively simple. Break
your sales down into manageable parts, and then forecast the parts. Guess your sales by line of sales,
month by month, then add up the sales lines and add up the months. This ﬁrst illustration shows you
a simple sales forecast which estimates total value for each sales category. VALUE-BASED SALES FORECAST This example of a value-based sales forecast includes simple price and cost forecasts to calculate
projected sales and direct cost of sales. HURDLE: THE BOOK 11.2 ON BUSINESS PLANNING Forecasting is usually easier when you break your forecast down into components. As an example,
consider a forecast that projects $1,000 in sales for the month, compared to one that projec...
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This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.
- Winter '09