Sales forecasting help
Are you looking for investors to help grow your business? Part of your job will be to develop a quality business plan that includes sales forecasting to show lenders that you are interested in becoming a stronger company. Sales forecasting also allows you to create a plan to acquire new customers and to focus on what you need to do in order to find your customers.
Use actual sales
In order to focus on creating a good sales forecast, you want to take a look at your previous sales. Use these numbers to help you predict what your sales will be like in the future. You will simply add up your previous year's sales to figure out what your total sales will be for the next year plus at least 10% more. This gives you something to look forward to. You also need to check on when you can expect seasonal sales slumps in order to determine how much money you need to set aside in your cash reserves to pay for emergency needs during your slow season. When you are asking lenders for more money, using actual sales numbers provides you with the best validation and it's the best way to convince a lender to offer you money as they can see where your company will go in the future.
Provide an innovative marketing strategy
Lenders need to see that you have a good marketing strategy if you are going to grow a successful business. Make sure you offer them a solid marketing strategy. Base your strategy on things such as what has worked in the past and new marketing campaigns that you would like to use in the future. You need to focus on creating a marketing campaign that will expose your company to a new audience. This helps to strengthen your customer base and build a stronger future for your company, one that lenders will have no problem offering money to.
Another way to provide lenders with stronger sales forecasting help is to start focusing on market research. You need to be able to understand who your target market is and why they will have an interest in purchasing your products now and in the future. To conduct market research, use the internet to your advantage. Head to social media sites like Twitter and Facebook to interact with your customers and to learn more about their needs because it is free to use unlike using actual market research companies. There are other ways to learn your customer's opinions and to find out how you can market better. One way is to conduct customer surveys. Ask them what type of things they are interested in and how you can become a better company to suit their needs. Learning information directly from your customers is your best source as they know exactly what they want and expect from your company.
Use smaller predictions
The other important part of sales forecasting is knowing what you are actually capable of doing. Some companies get overly excited about sales forecasting and they end up making predictions that they cannot uphold. Only predict sales on what you know your company is capable of doing. While you may have a desire to launch an expensive marketing campaign, you probably won't have the funds to do so for years. This is why it is important to take your time and know what you can do.
Review your sales forecast often as it will change with the economy and the needs of your customers. Lenders need to see that you can update your sales forecast for changes in the future in order to become a long-lasting company.