Sales Forecasting For New Business

Written by Ben Botes


Continued from page 1

Question: What arerepparttar statistics onrepparttar 141746 people in your area?

Step 3 List and profile competitors selling in your trading area.

Refer back torepparttar 141747 data you collected in your market research.

Get out onrepparttar 141748 street and study your competitors. Visit their stores orrepparttar 141749 locations where their product is offered. Analyserepparttar 141750 location, customer volumes, traffic patterns, hours of operation, busy periods, prices, quality of their goods and services, product lines carried, promotional techniques, positioning, product catalogues and other handouts. If feasible, talk to customers and sales staff.

Step 4 Use your research to estimate your sales on a monthly basis for your first year.

The basis for your sales forecast could berepparttar 141751 average monthly sales of a similar-sized competitor's operations that are operating in a similar market. It is recommended that you make adjustments for this yearıs predicted trend forrepparttar 141752 industry.

Be sure to reduce your figures by a start-up year factor of about 50% a month forrepparttar 141753 start-up months.

Consider how well your competition satisfiesrepparttar 141754 needs of potential customers in your trading area. Determine how you fit in to this picture and what niche you plan to fill. Will you offer a better location, convenience, a better price, later hours, better quality, and better service?

Consider population and economic growth in your trading area. Using your research, make an educated guess at your market share. If possible, express this asrepparttar 141755 number of customers you can hope to attract. You may want to keep it conservative and reduce your figure by approximately 15%.

Prepare sales estimates month by month. Be sure to assess how seasonal your business is and consider your start up months.

Further tips Sales revenues fromrepparttar 141756 same month inrepparttar 141757 previous year make a good base for predicting sales for that month inrepparttar 141758 succeeding year. For example, ifrepparttar 141759 trend forecasters inrepparttar 141760 economy andrepparttar 141761 industry predict a general growth of 4% forrepparttar 141762 next year, it will be entirely acceptable for you to show each monthıs projected sales at 4% higher than your actual salesrepparttar 141763 previous year.

Credible forecasts can come from those who haverepparttar 141764 actual customer contact. Getrepparttar 141765 salespersons most closely associated with a particular product line, service, market or territory to give their best estimates. Experience has provenrepparttar 141766 grass roots forecasts can be surprisingly accurate. Sales Forecasting andrepparttar 141767 Business Plan

Summarizerepparttar 141768 data after it has been reviewed and revised. The summary will form a part of your business plan. The sales forecast forrepparttar 141769 first year should be monthly, whilerepparttar 141770 forecast forrepparttar 141771 next two years could be expressed as a quarterly figure. Get a second opinion. Haverepparttar 141772 forecast checked by someone else familiar with your line of business. Show themrepparttar 141773 factors you have considered and explain why you thinkrepparttar 141774 figures are realistic. Your skills at forecasting will improve with experience particularly if you treat it as a "live" forecast. Review your forecast monthly, insert your actual, and reviserepparttar 141775 forecast if you see any significant discrepancy that cannot be explained in terms of a one-time only situation. In this manner, your forecasting technique will rapidly improve and your forecast will become increasingly accurate.

Ben Botes is an author, entrepreneur and expert speaker on new venture creation. He is also the founder of http://www.my1stbusiness.com a web portal for 1st time business owners and entrepreneurs. Visit my1stbusiness.com today for the most extensive range of small business resources, courses, articles and tools. Contact; ben.botes@my1stbusiness.com


10 Essential Criteria For Choosing Your Target Market

Written by Tessa Stowe


Continued from page 1

6. There's enough of your TM out there to sustain a business. How many people or businesses are in your target market? Realistically how many will become your clients and what will that be worth to you? Is that enough?

7. You enjoy working with your TM. Think about what types of people are in your target market and visualize being with them day in and day out. How does that feel? Will you feel energized or drained atrepparttar end ofrepparttar 141706 day? Remember, you are also in business to enjoy yourself so make sure you will enjoy working with this target market.

8. You have a passion for helping and serving this TM. Passion is an essential ingredient for selling your services.

9. You have valuable expertise and experience you can offer. Your target market will want to buy from people who are experts in their field. Think about what specific expertise and experience you can offer your target market.

10. Your TM fits with your ultimate lifestyle package. What hours do you want to work? Where do you want to work? How do you want to work? Does this fit in with your target market? Ensure that working with your target market will enable you to liverepparttar 141707 kind of life you want to live.

Once you have found your target market,repparttar 141708 next step is to refine it even further. Decide onrepparttar 141709 profile of your ideal client. What sort of person are they? Decide on their demographics and psychographics. Demographics arerepparttar 141710 basic facts like age, gender, income, location, etc. Psychographics are their characteristics, values etc. This will enable you to focus even more.

The clearer you are about who you want to do business with,repparttar 141711 more you will attract exactlyrepparttar 141712 clientele you're looking for. You will then need your Sales Conversation skills to convert them to clients

Tessa Stowe works with self employed professionals who are struggling to sell their Services. To learn more about this and to sign up for more FREE tips like these, visit her site at http://www.salesconversation.com




    <Back to Page 1
 
ImproveHomeLife.com © 2005
Terms of Use