The term sales forecasting refers to the process of predicting and estimating probable future sales. It helps the companies to take informed decisions and predict the performance of short term or long term businesses. This sort of forecasting can be based on the past performances of the business, comparisons of the projects, and the economic trends.
What is the Importance of Sales Forecasting?
Sales forecasting helps the businessmen and traders to plan and strategize the steps that they take in the sales. Such strategized and planned steps can save the company’s interest from the crises. It is like knowing your future and taking measures to deal avoid it even before it might get to your sales way. There are several other important facts about sales forecasting that you might know. Like
- Sales forecasting gives insights into the process or way in which the workforce, cash flow, and other resources of the company need to be managed.
- This process considers the availability of resources like required equipment and capital while determining its production volumes.
- It helps the companies to plan for future growth.
- The process helps to efficient resource allocation.
- Forecast sales revenues that are possible to be achieved.
- The process can help to decide the policies the company should take in.
- It helps to know to what extent the advertisement should be done.
- Sales forecasting can give ideas on deciding the production and purchase schedules.
- Such a forecast result helps in guiding the marketing and business activities for hitting and surpassing the targets.
What are the different Sales Forecasting?
Two types of sales forecasting are practiced to predict the future performances of the sales of companies, that is, short-term forecasting, and long-term forecasting.
Short-term Forecasting
Short-term forecasting refers to the sales that last not more than a year. The period of sales depends upon the business nature and types. This forecasting is used for several purposes like
- It helps to forecast and avoid the problem of overproduction and minimal supply of the raw materials and other required things by adopting suitable production policies.
- It helps to have control over inventories.
- Forecast always helps in setting a target of the sales.
- It allows for arranging the financial requirements in advance so that the demands can be met.
Long-Term Forecasting
Long-term forecasting as the name suggests lasts for years and years. Here also the period of the sales may depend on the nature of the business. in many cases, especially after 12 years, the forecast is assumed uncertain but for giant industries, forecasting is required due to the high cost of the equipment. Long-term forecasting also has several purposes.
- If the demand rises, it helps to plan for the new required units that need to be produced.
- it helps to plan the financial requirements that the company might require in its long-term business.
- It predicts the need for the possible man-power requirement in the future so that it can be met.
You can also get an idea of sales forecasting by referring to the below-mentioned examples and templates on the topic. So, have a look at them today!
Sales Forecast Examples & Templates
1. Sales Inventory and Forecasting Example
If you are a sales practitioner and need to focus on its forecasting we understand your concern and thus we suggest you may choose this example. The template added here discusses the requirements in a sales process and describes different aspects of the sales strategic plan. So have a look at this template and make your task easier.
2. Sales Forecasting Management Example
For the purpose of forecasting any sales possibility, you need to study and analyze the different details available in your hand. The mentioned template describes the sales analysis and sales forecasting management process. You can follow this template before preparing one for you as it might reduce your responsibilities and save your time. So, check the template out today!
3. Sample Sales Forecasting Management Example
Sales is not an easy task as it involves a vast audience so does it raises the complexities. That is why companies forecast sales to predict the future reactions and actions that might take place to the company stays ready with the required measures. You can refer to this example template to understand the relevance and importance of the sales forecasting. Have a look at this template and if it looks useful to you download this today!
