Whether your business sells water wings or water filters, auto parts or party dresses, you need to be able to confidently forecast demand in order to thrive. Preparing a sales forecast will help your company take stock of past performance and become fully aware of where you stand today, in order to make the best decisions for future growth.
Think of forecasting as the business version of a medical checkup. By regularly taking your operation’s pulse and assessing its general health, you can improve cash flow, control inventory, plan resources and identify trends. Creating a realistic sales forecast can also help prepare you for more successful conversations with your BMO® Representative.
Here are some key steps involved in developing a forecast that will realistically represent future sales.