How to forecast sales as a startup?
Besides getting all glassy-eyed at all the potential money to be made, why is forecasting sales so important? What are the key purposes? How should you do it? How do you use it afterward?
Why Forecast Sales?
Why should you be forecasting sales as a startup entrepreneur?
The primary reason for forecasting sales is for you. It is one of the most important steps in mapping out a business.
You don’t even know if there is a business there to be created if you don’t work this math. Then is there a big enough opportunity to be worth your time and for the others, you’d want or need to bring on the journey.
This is also a key tool and set of figures for goal setting and focusing on your team. They need to know what they should be shooting for, and what’s expected.
Your sales forecasting process will also reveal what your needs are on the journey. You need to know what type of budget and tools you’ll need to hit those sales goals, and the team you’ll require to make it happen.
Some will say that there is no use in forecasting sales as a startup. This is because things change so fast as a startup. Yet, if you don’t have goals, you really don’t have direction. You’ll be floundering every step of the way.
Other experienced business professionals know these things change. So, more significantly they are looking at your sales forecasts for insights into your thinking, and simply whether or not you know what you are doing.
Do you really know what is reasonable and realistic in your industry? Have you really done your homework? What is your basic business experience? Are you just making numbers up without any authoritative data?
See How I Can Help You With Your Fundraising Efforts
- Fundraising Process : get guidance from A to Z.
- Materials : our team creates epic pitch decks and financial models
- Investor Access : connect with the right investors for your business and close them