Forecasting Sales: Business Plan Basics
Forecasting sales is quite a difficult process, but is the most important part of your business plan. But, as with anything, you have to start somewhere.
Things To Think About:
How big is the overall market?
Research and find out, approximately, how many dollars are being spent on your product type PER year. How many units are being purchased? Once this information has been collected, estimate what your company’s market share is. Your company’s market share is the percentage of the total dollars and units that you will capture. In the beginning, your market share will be small, but will gradually increase as you increase.
How are you planning to advertise your product? How many people do you plan on reaching with your ads? Once you can figure this out, estimate the percentage of people that are to become purchasers. Then calculate the units to be sold.
What are their revenues and unit sales? Find out what it is. Then, you can figure that your sales will be a percentage of that figure.
How many do you plan on hiring? How many dollars and units can each one sell per month? This is how you can calculate the monthly revenues based on these projections.