“It is far better to foresee even without certainty than not to foresee at all.”
— Henri Poincare
When it comes to forecasting sales for the year ahead, it’s no mean feat, and that number you come up with can have a huge impact on your company. Many companies simply take last year’s figures and add a percentage on as an educated guess, but that really can be a “stab in the dark” approach.
So much depends on your forecast – things such as your staffing-to-sales ratio, physical expansion or even the possibility of venturing into new markets.
Getting it right can depend on the skill of your current sales team, the performance of your after care, your current client relationships, the strength of that new market and the economy in general.
Forecasting for the year ahead should be a collaborative process. With the key staff involved you are more likely to get real data and buy-in from them when it comes time to make any difficult decisions.
Gather the information you need to make 2017 a successful and prosperous year now. Look at your hard costs, predicted sales, training needs and known staffing changes.
ACTION:
Keep tabs on your data by having regular forecasting meetings to see how you are performing against forecast. For example, plan for one hour on the first Thursday of the month. What areas need attention and who needs to work on them?
If you need some help putting your forecast together, please click on the link below, we are happy to help.
Disclaimer
The material on this website is for the benefit and information of clients. The items are in the nature of general comments only, and are not to be used, relied or acted upon without seeking further professional advice. Hounsell Accounting Limited accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice.
