These should be readily measurable, specific and realistically attainable. You need to look at the short term (the next financial year) and the medium term. Some City institutions and applications for the few government grants ask for the next three years' projections - a somewhat unfathomable task. The objectives can be an increase in turnover, more sales per employee, increase in market share or, most importantly - an increase in profit. The hardest and first job is to prepare the sales forecast.
Existing businesses have a distinct advantage. They have records on which to base their predictions, broken down into market segments, product classifications, geographical areas, distribution channels and other important strata. New businesses are groping in the dark. However, for both parties there are similarities. Much the same influences on demand will be common to both and the same sources of information will need to be assessed.
What segment of the market are you aiming for? Where are the gaps? Are they likely to grow or reduce? How can they be defined - age, sex, socio-economic, area, industrial or consumer?
What are the influences that could affect demand? What are the trends? Is there new technology in the pipeline, government legislation, taxation changes, fashion, seasonal influences, undue trade restrictions?
What is the competition doing? Are new competitors being attracted into your segment? Will you have to offer more discount, sales promotion, sales staff, etc, to maintain your market share?
What changes are planned in the product range? Obsolescent products dropped or new ones introduced? Which make the most profit? Can existing lines be revamped or promoted with increased benefits or added value to appeal to a wider audience? Where are they on the product life cycle?
How fast do you want to grow? What other resources and constraints must be taken into account - finance, premises, staff, etc? While the experienced businessman may know his own capabilities very well, many circumstances outside his control or knowledge may render any serious attempt at forecasting unreliable. Changes in bank rate or taxation can throw investment decisions awry in whole industries.
It should be quite feasible to plan a short-term sales forecast within the existing productive and distributive capabilities of the company. Beyond that, many industries are subject to cycles of demand. The CBI regularly produces surveys of its members that predict future confidence in order books that have a strong bearing on all members of that sector. In the longer terms, forecasting is inevitably less accurate, with predictions on trends rather than real figures.
Our website is not responsible for the information contained by this article. Webworldarticles.com is a free articles resource thus practically any visitor can submit an article. However if you notice any copyrighted material, please contact us and we will remove the article(s) in discussion right away.
This article was sent to us by:
Lance A. Haydright at
07152010
1. Sell quality products and send a personal message to your customers
All articles in this directory are property of their respective authors. Additionally, read our Privacy Policy
© 2010 WebWorldarticles.com - All Rights Reserved. Partners: Gunblade Saga