The knack of predicting the future isn’t exclusive to crystal balls and fortune tellers. Sales forecasting serves a similar purpose in the business world, especially for small businesses. Unveiling the mystery behind your business’s future sales can help you make informed decisions and strategize effectively. But what is a sales forecast, and how does it work? Let’s explore.
What is a Sales Forecast?
A sales forecast, simply put, is a prediction of future sales revenue. This projection typically accounts for specific periods, such as monthly, quarterly, or annually. But sales forecasts aren’t wild guesses—they’re grounded in data. More specifically, they draw from historical sales data and various influencing factors like market trends, economic indicators, and competitive landscape.
