Sales forecasting is the process of estimating future sales. Accurate sales forecasts enable companies to make informed business decisions and predict short-term and long-term performance. Companies can base their forecasts on past sales data, industry-wide comparisons, and economic trends.
It is easier for established companies to predict future sales based on years of past business data. Newly founded companies have to base their forecasts on less-verified information, such as market research and competitive intelligence to forecast their future business.
Sales forecasting gives insight into how a company should manage its workforce, cash flow, and resources. In addition to helping a company allocate its internal resources effectively, predictive sales data is important for businesses when looking to acquire investment capital.
Sales forecasting allows companies to:
- Predict achievable sales revenue;
- Efficiently allocate resources;
- Plan for future growth.
In marketing, it’s not just about getting a senior-level position. It’s about keeping one. Use the resources in the Marketing Executive’s toolkit to plan a successful marketing strategy, manage your staff, and get the most out of your budget.