nclude, for example, coupons, discounts, sweepstakes, sales, etc.SALES FORECASTING Sales forecasting is the process of organizing and analyzing information in a way that makes it possible to estimate what your sales will be. This document outlines some simple methods of forecasting sales using easy to find data. Books containing simple and sophisticated techniques of forecasting sales can be found in libraries and business oriented book stores. If you sell more than one type of product or service, prepare a separate sales forecast for each service or product group. There are many sources of information to assist with your sales forecast. Some key sources are:CompetitorsNeighbouring BusinessesTrade suppliersDowntown business associationsTrade associationsTrade publicationsTrade directoriesStatistics Factors that can affect Sales.External:Seasons Family formations Fashions or styles Holidays Births and deaths Population changesSpecial Events Political events Consumer earningsCompetition, direct External labour events WeatherCompetition, indirect Productivity changesInternal:Product changes, style, quality Sales Motivation plans Credit policy changesService changes, type, quality Shortages, inventory Labour ProblemsShortages, production capability Shortages/working capital Price changesPromotional effort changes Distribution methods used Sales Forecasting for a New BusinessThese steps for developing a sales forecast can be applied to most kinds of businesses: Step 1 Develop a customer profile and determine the trends in your industry.Make some basic assumptions about the customers in your target market. Experienced business people will tell you that a good rule of thumb is that 20% of your customers account for 80% of your sales. If you can identify this 20% you can begin to develop a profile of your principal markets. Sample customer profiles:1....
