Sales Forecasting 2.2.1
Sales forecast - is an estimation of future sales that may be based on previous sales figures, sales volumes, trends, market surveys and trends or managerial estimates. The purpose of this for the following categories are: Finance Inform cash-flow forecasts i.e. how much money can the business expect to flow in from sales.(sales will directly affect cash inflow and so any change in future sales will alter the cash flow and so any change in future sales will alter the cash flow forecast and the level and availability of working capital) Predict sales volume and sales revenue Assess ability to break-even Help set budgets (if sales are forecasted to increase, the business will need to increase departmental budgets for production and distribution) Profit and Loss forecast (future sales will have a direct bearing on this) People Plan workforce needs for: Sales team Seasonal staff in stores or distribution Peak times Operatives to ensure supply meets demand (the...