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Finance in Shorts


Your sales forecast is the backbone of your business plan. It is the basis for determining future growth, expenses, profits and staffing.

Unit wise:

Break your revenue stream into units and start forecasting unit sales per month. If your company has multiple streams, find out units for each of the business and start the forecast process. 

Use past data:

Best forecasting aid is recent past. You can projecting your two most recent years of sales by month on a line chart and then visually tracking it forward along the same line. Do add a growth percentage for specific periods such as quarters etc if it’s supported by additional marketing and sales strategy. 

New products  use decision factors:

Find out important decision factors in case of new revenue stream/products/services. You can either use a comparative product as a guide or use the trend of your customer segment as a lead indicator for forecasting.  

Project unit prices:

It is important to review and project your pricing for future period. You need to consider competitive pressure, new product arrivals, volume increase while forecasting future pricing. You also need to consider inflationary increases in certain areas. 

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