Sales forecasting is an important action to make decisions about efforts in your business process.
A good sales projection can be the justification for an increase in investment in the commercial area.
It will also serve for the manager to have a light on the area’s revenue and define actions to get there.
What is sales projection?
Have good sales management within your sales process is a key to maintaining a continuous pace of growth and results that are essential for the company’s revenue generation.
Sales projection works as a basis for all business planning, from it it is possible to analyze what is needed in the coming times, months, weeks, from employees to budget for each expense of the teams.
And with this projection, all the planning that the company needs for all its areas is carried out, according to what is expected to be generated in terms of results.
Marketing, HR, finance, sales teams, customer support, logistics, the entire company is included in the planning based on the sales projection.
With it, the different sectors and departments of the company are able to trace their goals, objectives, expenses to be carried out over a period of time so that it can be aligned with the expected revenue results.
Track sales projection is essential, since, as it is the starting point for all planning within a company, constantly monitoring performance, functionality and how predictability is going, ensures that all sectors can count on what they were. being planned.
How to analyze the sales projection ?
There are several ways and methodologies to calculate and structure a sales projection, everything varies according to the functioning and organization of your company.
Each business model works with its sales projection according to the resources it has available, with its data and goals to be developed.
Larger companies usually have a commercial intelligence team that helps a lot in sales projection, where through technology they manage to better structure all the projection that the company needs.
So, the scenario of companies being very different, the projection of each one changes as necessary to meet their demands.
3 sales projection models
1# Sales projections according to history
This projection model is most often effective when used, as it relies on analyzes of the company’s previous results in previous years, where tracking these past trends helps to build new projections.
With this historical analysis, it is possible to understand situations such as market fluctuations, how the behavior was on commemorative and important dates, how the market performed during elections and between government changes, among many other important moments that caused a socioeconomic impact on the company.
2# Market-based projection
This forecasting model is widely used by companies that are starting their journey in the market, and consider making sales forecasts based on what the competitor market offers potential, and also according to the target audience they seek to reach.
So, consider the size of the market, the value proposition they can offer, what the public is looking for with your solution and how your competitors behave.
3# Projections based on financial resources
The sales projection model based on financial resources is more organized according to what the company is able to produce, yield, during a given time.
This is not to say that it works for all types of companies and businesses, so some risks are taken into account when using this sales forecasting model, such as the drop in demand due to excess production.
How to perform a good sales projection ?
Several factors must be analyzed according to the context in which your company is inserted in order to make a good sales projection.
Internally and externally, a company needs to schedule time before the beginning of next year so that the projection is made and is more effective and structured.
The path to follow for a sales projection, again speaking, does not necessarily have to be the same, and it will not always be constant, as it can change according to the development of your business.
Another very important point to be highlighted is that, for a sales projection to be more accurate, it needs to start from the alignment of all areas and sectors of the company.
1#- Always analyze the sales history, and understand how your company’s performance was in previous years and periods, if there was any fluctuation, if there was any drastic change that impacted the business, and always calculate error margins to avoid getting caught by surprise if any unusual situation reoccurs.
With this perspective of how the previous years were, it is also possible to see how salespeople performed over time, and how they evolved within the sales process.
2# – In addition to looking back, it is necessary to see how the present is, how the market is in the current moment when you are going to carry out the sales projection of your company, how it is performing in the last moments.
Especially the B2B market is in constant evolution and changes that happen suddenly, so being prepared for them is one of the keys to a well-structured process for the projection.
Always try to understand how your business is reacting to the current market to analyze how this can impact your process and your projection.
3# Always consider events that are fixed for a year, long holidays, important commemorative dates, it may seem small but all these moments have an impact on several areas within a business.
4# Try to understand also how your competitors act in the market, how they are carrying out their strategies, how they are approaching the same situations as you.
Try to visualize the business model they use, how it impacts sales, if they can have any bigger investment, all this information helps in building a process.
5# Use a good tool to calculate your sales projection, a CRM, a complete tool, use well-structured spreadsheets to have all your data organized and always keep them updated according to the progress of the projection results in the your company.