Now I will discuss about the sales forecasting. Sales
forecasting is important as a substance for determining the cash or budgeting.
Cash is an important thing in business. If the cash calculation is missed, then
almost certainly your business operation will be disrupted. An example is if
you missed sales forecasts much, there is unmet consumer demand due to the less
stock material, then consumer dissatisfaction increases, ultimately the
consumer will buy your competitors products. What a terrible moment. Back to
topic, what you have to make a sales forecasting every year for? Sales forecasting
is required as a standard to set a budgeting, grasp business growth and
business profits per year. With these examples, you can conclude that the sales
forecasting is a tool to drive your business in the right direction.
forecasting is important as a substance for determining the cash or budgeting.
Cash is an important thing in business. If the cash calculation is missed, then
almost certainly your business operation will be disrupted. An example is if
you missed sales forecasts much, there is unmet consumer demand due to the less
stock material, then consumer dissatisfaction increases, ultimately the
consumer will buy your competitors products. What a terrible moment. Back to
topic, what you have to make a sales forecasting every year for? Sales forecasting
is required as a standard to set a budgeting, grasp business growth and
business profits per year. With these examples, you can conclude that the sales
forecasting is a tool to drive your business in the right direction.
Although it is very important and can result in disruption
of your business operations in case of forecasting errors, do not think that
this forecasting activity requires a very deep mathematical expertise. And also
do not think that in making sales forecasting, you must make it perfectly
without any errors. As a small business owner, you do not need to have an
academic degree in accounting or management, you only need common sense, little
research skill, and strong motivation to make forecasting.
of your business operations in case of forecasting errors, do not think that
this forecasting activity requires a very deep mathematical expertise. And also
do not think that in making sales forecasting, you must make it perfectly
without any errors. As a small business owner, you do not need to have an
academic degree in accounting or management, you only need common sense, little
research skill, and strong motivation to make forecasting.
These are sales forecasting tips to get started:
1. Began to record
This step is performed if you are
totally new to sales forecasting which means you do not have sales data for the
previous month or year. You must record the volume of sales per unit per month.
If you are selling services such as IT consultant, you should record the volume
of meetings with each client within hours (if you get paid per hour by the
client).
This step is performed if you are
totally new to sales forecasting which means you do not have sales data for the
previous month or year. You must record the volume of sales per unit per month.
If you are selling services such as IT consultant, you should record the volume
of meetings with each client within hours (if you get paid per hour by the
client).
2. Collect the data
You can go directly to point 2 if you have a sales volume data. You can use a
simple statistical method if you have any past complete data is. I give an
example using Microsoft Excel. Suppose you have monthly sales data from 2010 and
2011. And you want to make predictions for five months beginning in 2012. you
can use tools and pivot chart trendline. In this case, I use the polynomial
method to make predictions of sales five months ahead. You can see the images
below for more details.
You can go directly to point 2 if you have a sales volume data. You can use a
simple statistical method if you have any past complete data is. I give an
example using Microsoft Excel. Suppose you have monthly sales data from 2010 and
2011. And you want to make predictions for five months beginning in 2012. you
can use tools and pivot chart trendline. In this case, I use the polynomial
method to make predictions of sales five months ahead. You can see the images
below for more details.
3. Projecting into currency
After you perform and calculates the
projected sales volume forecasting, you must reflect this volume of data into currency
(in my case is $). How? It is easy, the trick is to multiply the volume with
unit price in order to get the dollar amount. Why is the graph that you create
must consist of two types, namely units and dollars? Here are the answer: Due to the number of units, you will know how many
stock of goods to be supplied. Through forecasting in $, you'll find out how
much your money which use as capital for cash flow.
After you perform and calculates the
projected sales volume forecasting, you must reflect this volume of data into currency
(in my case is $). How? It is easy, the trick is to multiply the volume with
unit price in order to get the dollar amount. Why is the graph that you create
must consist of two types, namely units and dollars? Here are the answer: Due to the number of units, you will know how many
stock of goods to be supplied. Through forecasting in $, you'll find out how
much your money which use as capital for cash flow.
That's the tips to create a sales forecasting. If you have
not made it before, immediately collect the data, and perform the easy steps
above. You will feel the positive impact when you are working based on data. If
you've made it, maybe you can make it with more advanced methods, so that
decisions can be completed quickly and appropriately.
not made it before, immediately collect the data, and perform the easy steps
above. You will feel the positive impact when you are working based on data. If
you've made it, maybe you can make it with more advanced methods, so that
decisions can be completed quickly and appropriately.
