How Do You Determine The Best Sales Forecasting Method?
The type of sales forecasting method you use depends on how much information you have. And while there may be a best case method, banks and funding sources like to see multiple estimates that confirm profitability. In general there are four different sales forecasting methods. There’s a method for you even if you’ve never had sales in the past. The key is to work through each method to determine which ones produce the best forecast given your data. Look up the average sales volume per square foot for similar businesses in the same industry. This information alone can provide the basis for your forecasting method. This can be found by asking a business broker in the area, asking the local trade association, asking a business owner in the area, or reading through the sales and revenue section of the annual report. Determine the number of households located within one mile of your business. Determine how much these residents will spend on the items you sell on a daily basis by looking at
