Embedded Files
Why do you need a solid sales projection?
Why do you need a solid sales projection?
Sales projections and forecasts are important for running your business. At a bare minimum, these forecasts help you budget for the next year. As a best practice, you can use these forecasts to prepare for the demand you expect over the next year, by proactively hiring and training the people you need (try out our Right size tool) or investing in the automated systems you need to scale (Right systems can help).
The bottom line - you need a solid sales forecast to be future proof.
What does a good sales forecast look like?
What does a good sales forecast look like?
Any forecast should have some target estimate, like expected revenue over the course of a time period that is relevant to your business, ideally matching your budget review cycles.
Can anyone be certain about that estimate? Absolutely not. It is essential that your sales forecast includes a range to capture the uncertainty.
How to make a sales forecast?
How to make a sales forecast?
There are multiple ways to make sales projections - and many wrong ways that could lead your business astray. The right approach for creating a sales forecast depends on the type of business you have, what drives revenue, and what data you can use.
For example, if you run a specialized consultancy that is constantly sold out, your revenue isn't really driven by marketing reach, economic factors, or past year growth (although these are all risks relevant to take into account). Your revenue is purely driven by the number of consultants on your team, and your forecast should reflect that.
On the other hand, your business could be selling custom t-shirts direct to consumers through traffic driven to your blog by search engines. In this case, your revenue is likely driven by your marketing reach, positioning against competitors, and ability to keep customers coming back. If you're using a scalable outsourced drop shipping model, your team size may be completely irrelevant in comparison to the specialized consultancy.
Our sales projection wizard can help you think through the right approach that fits your business. Ready to get started?
Learn how to make the sales forecast or projections that make sense for your business and the data you have.
We can help you with a customized, data-driven approach to get your business to peak performance.
Not sure how many people you need to stay profitable and reach your goals? We can help you with a benchmark-based approach that stays true to your business dynamics
Page updated
Report abuse