Forecasting is a term used to describe the process of estimating future sales and revenue. Even before you start having regular sales activities and revenue streams, it is important to understand how to create solid revenue forecasts. When done right, forecasting is a methodology that allows you to arrive at reasonably predictable revenue expectations.
If you have little or no experience with sales forecasting, this workbook will help you understand the basic approach for building a revenue forecast.
Download and use this workbook to:
To assist you in the sales forecasting process, we have created a series of three workbooks. To meet the diverse needs of startups in Ontario, the workbooks cover two different situations: pre-revenue/pre-sales (i.e., before sales activities) and early-stage sales (i.e., the onset of regular sales activities).
For the pre-revenue/pre-sales situation, we offer two workbooks:
For companies with early-stage sales, we have a workbook to steer you through a bottom-up approach for basic sales forecasting and help you predict sales revenue by calculating the future value of your sales opportunities.
Most Sales Force Automation software (SFA) contains functionality for predictive analytics that can automate some of the forecasting process. Even if you have access to an SFA software package, we recommend going through this workbook, especially if you have little or no experience in revenue and sales forecasting and your company is just beginning sales activities. This is because you will not be able to benefit fully from an SFA tool until you develop a solid understanding of the variables that affect the accuracy of your forecast.
Contains instructions, examples and activities.