How to Estimate Sales Forecasting in a Business Plan

Sales forecasting is one of the difficult and time-consuming steps in writing a business plan. This step becomes even more difficult when you are writing your first ever business plan and do not have previous sales experience to guide you. In fact, it is of the key components that most investors and lenders pay attention to. Even if this is not your full plan yet, forecasting sales is still important to develop your business goals and reports. In this article we will discuss a few key steps to help you calculate sales forecasting in a business plan.

1) Identify your market

The first step to begin with is to research about all your competitors that operate in the same geographical market with a similar customer base. Try to find out how big is your overall market and make sure your revenues will grow year by year, no matter if you are new in the market. The first step sales managers usually combine with all marketing and advertising strategies pursuing more accurate and predictable results.

There are three basic methods for forecasting sales in a new start business.

a. Marked based

This method focuses on specific location and number of competitors around you. You should measure how many households around for example, one miles to you, would choose your products over your competitors’. Additionaly try to find out also those of five miles far from you and use distances that will make sense to your location.

b. Value based

The second method would need you to calculate total value for each sales category, or in other words what you business has to sell. Business charts are much more than just pretty pictures; especially when you are putting them in your business plan. You should always create charts with this value based technique to illustrate and evaluate the projected numbers.

c. Resource based

The next important step is measure the maximum revenue your business can achieve given the present resources.This is a great indicator to show to your future investors how your company will produce and sell in case of limited resources available at your hand.

2) Prepare your sales forecast

Once you have the clear picture comparing these three sales forecasting methods mentioned above, it is time to prepare it in a format which any bank manager, or investor, will understand. You should now instill confidence by your explicitly demonstrated ability to analyze and pivot your tactics and strategy and show your reader your assumptions about growth rate. This really gives the investor the ability to assess you the entrepreneur – which is where the decision is going to inevitably end up.

Motivation – Keeping Your Visions Visual Will Keep You Focused on Your Business Goals

As an entrepreneur, especially if you are a solo entrepreneur, it is often easy to lose sight of your visions and goals for your business. You get hung up on the day to day running of your business and it is easy to become complacent or static.

One of the best investments you can make in your success is a simple whiteboard. Hang it where you will see it on a daily basis. The wall by your desk is a perfect place. Use the whiteboard to map out your goals and your vision for your business. Chart out both your long-term and short-term goals. Add to that your daily tasks that you will update every day.

By keeping your daily goals on the same whiteboard as your long-term goals, you are forced to visit those goals every day. You would be surprised at just how focused this can keep you on the “big picture”. It will also help you map out your tasks so that you are always moving forward.

When you are planning your daily tasks, you are more likely to include one step per day that will take you closer to your larger goals if it is there in front of you as a reminder. This also has an amazing way of helping you eliminate the unimportant tasks that sometimes clutter up your day.

Keep your visions visual and you will achieve your goals at a much more rapid pace than you ever imagined. Make an appointment with yourself once per month to update your longer-term goals and track your progress.

How Astrology Is Good for Business

Astrology is associated with your past, present and future. It is the study of heavenly bodies which affect the basic entities of your life including relationships, personality, and business. An astrologer can give you a snap shot of your future by reading the movements of the sun, moon, and planets in accordance with your specific sign and explain how they prove to play a role in every aspect of your life. Gaining astrological knowledge can be an enormous facilitator for your business in organizing, arranging, and keeping it going with nourishment, development and success.

You must be wondering how astrology could help in your businesses growth and success. The answer to this question is very simple. Astrology gives insight into future cycles which can be used to optimize and predict trends that can be used in decision making. Who wouldn’t want to prepare in advance for trends and be given specific dates that can serve as warnings or give clarity to an upcoming beneficial opportunity? Having an edge on future events will help you take precautionary measures against upcoming catastrophe. This knowledge can save your business from being directly affected by bigger loss in business. Having a professional astrologer cast a chart for your business can be a great tool to help you set goals and plan for future down turns.

Consulting your businesses birth chart in order to seek a forth coming predicament is a dexterous plan to act upon. Learning to make decisions in accordance to what astrology has to say, will give you a greatly increased chance of staying out of trouble while improving your opportunity to optimize a prosperous event. In some parts of the world, it is common to believe that everything generated in the world has a star, a horoscope and the celestial bodies reveal their impact on equivalent basis the same as they do on humans. Your businesses charts can act like a guide book, which has all the content of your “dos” and “don’ts”. This could become your best teacher and act as a manual for everything you are supposed to do and what you should do to compensate for negative traits.

Astrology has the power to make out the truth concerning imminent issues, calamities, opportunities and all activities. Imagine, if you receive a hint about a terrific chance to grow your business wouldn’t you want to adopt the path which is clear and visible, or would you instead like stay in the mist of darkness where you don’t know how to lead. All charts are cast according to the sun, moon, and planets and an expert astrologer can interpret each individual chart. Professional astrologers know how to read and cast charts for individuals and businesses according to date, time and location of birth.

It is always better to seek the truth and get a guideline to life and business than to remain in the dark. Your business growth and success may depend on the attention you give it according to astrological information and instruction.

Writing A Business Plan For Success

Business plans are good for entrepreneurs starting a business who want to attract funding and established firms looking to expand into a new venture or grow their business. A business plan is a road map to the success of a business, many businesses fail every year because of improper planning. A good business plan eliminates this dilemma.

Purpose: The purpose of a business plan is to help determine the course of the business; where it should be in the future and where to place the resources in order to achieve that goal. It is a document that provides future lenders and investors with proof of the entrepreneurs’ credibility. Thus, making them better candidates for funding.

Length: A Business plan wording and formatting should be straight forward and simple. The business plan should not be more than 40 pages. Summary tables and business charts should be used to make the numbers easy to read and grasp. No more than two fonts should be used. Font size should be at least 11 or 12 point size. Page breaks should be used to separate pages and charts.

Objectives: The main objective of a business plan is to establish revenue projections for the business and provide details on how the business will acquire the revenue.

BUSINESS PLAN FORMAT

A) Executive Summary

This is the first section of a business plan. This section is a brief overall summary of the business. It will define the nature of the business. The executive summary should be the last thing written. Once the rest of the components of a business plan have be written, entrepreneurs will have a clearer sense of what to write as their executive summary. The executive summary contains the following:

Mission Statement- This is where the business plan states how the customer will benefit from what the business has to offer. The business plan needs to state what products and services the company will be providing.

Objective – This is what entrepreneurs expect the business to accomplish, basically setting goals for the company.

B) Company Description

In this section, the business plan will go over a detail description of the business. The company description section contains the following:

Ownership – What type of ownership will the company be: sole proprietary, partnership, or corporation.

Location – This states where the business will be located. Office’s, retail shop and any other type of facility that is associated with the business should be mentioned. A website address should be listed if the business has one.

Product & Services – What will the business be providing, will it be a service or a product?

Funding – This is where it is stated how the small business will get funded. Funding is broken down into two parts, start-up expenses and start-up assets. Start-up expenses is legal bills, renovation and leased equipment. Start-up Assets are items that the business owners will be using for the business operation. For example, cash, purchased equipment and inventory.

C) Management & Operation Plan

This section of the business plan details how the business will function on a day to day basis. It contains the following:

Management – This will be a list of the personnel that will have a managerial position and the definition of their role in the business.

Operation – This describe the process that it takes for the business to deliver the products or services to the consumer.

D) Marketing Plan

It details the small business effort’s to sell the products or services to the customer base. A marketing plan will contain a list of the following items:

Industry – This lists all the players in the market; the competition, the type of products and service that they have, the strengths that they have and how they attract customers.

Potential customers – This section provides information about the individuals who will be purchasing from the business. The customer demographics will be based on the industry of the company.

Advertising- It involves promoting the products or services to the customer base. It lists the different ways in which the business will do this. For example, newspaper, radio, television, magazines, direct mail, Internet or telemarketing.

E) Finance Plan

Cash is the lifeline of a business. Without it, the business will be in jeopardy. This section will contain the following items:

Profit and Loss statement – A statement that lists the business’ estimated revenue and expenses over a specific period of time.

Balance sheet – Measures the business resources (assets) and obligation (liabilities) and projected balance sheets for the first three years. The first year projections will be on a monthly basis and the second and third year projections are on a quarterly basis.

Cash-flow projections – The amount of cash that passes through the business. It lists income and expenses. Cash flow pays the bills.

FINAL NOTES

COVER PAGE: The cover page contains the company’s name, address, telephone number, fax number, email address, website and company logo. It should also contain the name and title of the person that prepared it. It should state the name and address of the organization that will be receiving it. For example see below:

The ABC Cell Phone Company

1234 Main Street

Miami, Florida 56789

Telephone: 000-000-0000

Fax: 000-000-0000

Email Address

Website Address

THE COMPANY LOGO

Prepared By

John Doe

C.E.O

Submitted to

Main Street Bank

Miami, Florida 12345