2.2 – Financial Planning
2.2.1 – Sales Forecastng
Sales forecast The process of predictin future sales volumes aid values
Coisumer treids Chaines ii the buyiin habits of coisumers
Ecoiomic variables Fluctuatois ii factors outside of the busiiess’ coitrol that afect
the state of the ecoiomy aid therefore busiiess aid coisumer
behaviours
Possible approaches:
Extrapolatoi of treids form past sales data
Market research iicludiin test markets
Moviin averanes
Aialysis of ecoiomic variables
Why forecast sales?
Fiiaice
o Iiform cash-flow forecasts
o Predict sales volume aid reveiue
o Assess ability to break-evei
o Helps set budnets
Marketin
o Ideitfies whei promotoial actvity is ieeded
o Plai distributoi
People
o Plai workforce ieeds for:
Sales team
Seasoial staf ii stores aid distributoi
Peak tmes
Operatve to eisure supply meets demaid
Resource maianemeit
o Required level of output
o Stock maianemeit
o Cai supplier match demaid?
Factors afectin sales forecasts iiclude:
Coisumer treids
o Goods comiin ii aid out of fashioi
o Shoppiin habits
o Demonraphic
Chaines to the ecoiomy
o Iiterest rates
o Employmeit
o Stane oi the ecoiomy cycle
Actois of compettors
o Compettors eiteriin aid exitin the market
o Chaines ii price aid promotoi
2.2.1 – Sales Forecastng
Sales forecast The process of predictin future sales volumes aid values
Coisumer treids Chaines ii the buyiin habits of coisumers
Ecoiomic variables Fluctuatois ii factors outside of the busiiess’ coitrol that afect
the state of the ecoiomy aid therefore busiiess aid coisumer
behaviours
Possible approaches:
Extrapolatoi of treids form past sales data
Market research iicludiin test markets
Moviin averanes
Aialysis of ecoiomic variables
Why forecast sales?
Fiiaice
o Iiform cash-flow forecasts
o Predict sales volume aid reveiue
o Assess ability to break-evei
o Helps set budnets
Marketin
o Ideitfies whei promotoial actvity is ieeded
o Plai distributoi
People
o Plai workforce ieeds for:
Sales team
Seasoial staf ii stores aid distributoi
Peak tmes
Operatve to eisure supply meets demaid
Resource maianemeit
o Required level of output
o Stock maianemeit
o Cai supplier match demaid?
Factors afectin sales forecasts iiclude:
Coisumer treids
o Goods comiin ii aid out of fashioi
o Shoppiin habits
o Demonraphic
Chaines to the ecoiomy
o Iiterest rates
o Employmeit
o Stane oi the ecoiomy cycle
Actois of compettors
o Compettors eiteriin aid exitin the market
o Chaines ii price aid promotoi
