Sales projection: what is it and why is it important for small businesses?
Posted: Sun Jan 19, 2025 5:06 am
Do you know what sales projection is? This concept refers to the projection of how much you will sell in a given period of time. We know that, due to the pandemic , things have been more complicated for business owners in recent times, and expectations regarding sales have not always been met.
However, don't worry, there is a way! One way is to review these expectations, creating new projections based on the current context . We have written this article to help you make a forecast of how much your company can sell this year, what should be taken into consideration during this process and what are the benefits of this strategy for the business.
If you are interested in the subject and want to know more details about sales projection for small businesses, continue reading this post and check it out. Don't miss it!
3 main learnings from the post
1. Sales projection is a forecast you make of how much you el salvador mobile phone number should sell in a given period of time — a month, a quarter or a year, for example. It is important to guide your sales team and set a goal for your business.
Furthermore, this projection model allows you to know what to expect in the future and to better plan your company's expenses , whether it's to hire a new employee or to purchase equipment.
2. There are several benefits to adopting a sales projection strategy. In this post, we will talk about increasing your market knowledge and team engagement , as well as making your company grow organically .
To make accurate predictions, you need to study your market and your competitors in depth. Consequently, this increases your experience in the sector, which is very advantageous when making decisions.
Furthermore, sales forecasting requires you to outline strategies and goals for your business and your sales team. This way, your employees feel that they have a goal to achieve and are more motivated to achieve it.
Finally, with all the market and business knowledge, you can discover the times when you sell more and less throughout the year, and can create appropriate actions for each situation. This reduces sales fluctuations and allows your company to grow consistently.
3. To make an efficient sales projection, you need to look at the history of your business and the market in which it operates, understanding the periods of high and low sales, as well as the behavior of your consumer. Based on this information, it is possible to have a perspective that is closer to reality.
In this process, a management system can help a lot , because it concentrates all of your company's sales data and provides the necessary support for your business analyses.
What is sales projection?
Sales projection is an outlook for how much your company will sell over a period of time , such as a month, a quarter, or a year. It is based on concrete data about your business and the market.
Many companies end up making sales estimates based solely on unproven beliefs. This can be very damaging to the business and the sales team, who end up not knowing what strategies to take. Especially in times of crisis, sales projections can provide some guidance for the business and allow the entrepreneur to make decisions with less risk.
What should be included in the sales projection?
A simple sales projection should include the expected volume of products sold, the expected revenue amount, and the time frame in which the expected goals should be achieved . However, sales projections can be made in different ways.
You can do this, for example, by channels such as physical stores and e-commerce. Each distribution channel can also be subdivided by product category.
Therefore, the sales projection must have a reference, such as a drop or growth indicator, the average sales of the previous period, etc. You can also create it considering different market scenarios, with minimum and maximum margins to support decision-making.
In this sense, it is important to point out the origin of the growth indicators or the actions that must be taken to achieve the projected values. If your business shows a value above the average in December, because of Christmas, it is important to remember that this is a specific behavior and linked to a specific period of the month, so that there is no distorted interpretation of these numbers.
What are the main methods for making sales projections?
There are different methods for making sales projections, and you need to find the one that best fits your business' reality . We will present more details about each of them in the following topics.
Sales projection based on actual results
One of the most famous and relevant methods is the one that considers the company's sales history. In this case, an analysis of the results obtained and what generated this scenario, such as marketing strategies, must be made.
To do this, you can enter the amount received in sales during a given period, such as 6 or 12 months, into a spreadsheet. This makes it possible to look for a pattern of growth or decline .
Sales projections do not consist of simply noting how much sales have increased during a previous period and expecting the same return during the following periods. After all, the market is not linear in this way. However, this is a way of obtaining relevant data for your planning and understanding of your business.
Market-based sales projection
Another common situation is to analyze the market and your competitors to have data for your sales projection . This is especially valid when a business is starting its activities or expanding its operations.
In this case, to make a sales projection based on the market, you can analyze a business similar to yours or evaluate market research and estimates, using indicators and trends.
Stock-based sales projection
Sales projections can also be made by considering actions that can boost your sales , such as participating in an event. However, it is essential that, in this case, the projection has some basis.
If you have already carried out a sales promotion campaign in a previous period, for example, and obtained a 10% increase in sales, you already know that, when planning a similar promotion, it is possible to make a similar projection.
However, don't worry, there is a way! One way is to review these expectations, creating new projections based on the current context . We have written this article to help you make a forecast of how much your company can sell this year, what should be taken into consideration during this process and what are the benefits of this strategy for the business.
If you are interested in the subject and want to know more details about sales projection for small businesses, continue reading this post and check it out. Don't miss it!
3 main learnings from the post
1. Sales projection is a forecast you make of how much you el salvador mobile phone number should sell in a given period of time — a month, a quarter or a year, for example. It is important to guide your sales team and set a goal for your business.
Furthermore, this projection model allows you to know what to expect in the future and to better plan your company's expenses , whether it's to hire a new employee or to purchase equipment.
2. There are several benefits to adopting a sales projection strategy. In this post, we will talk about increasing your market knowledge and team engagement , as well as making your company grow organically .
To make accurate predictions, you need to study your market and your competitors in depth. Consequently, this increases your experience in the sector, which is very advantageous when making decisions.
Furthermore, sales forecasting requires you to outline strategies and goals for your business and your sales team. This way, your employees feel that they have a goal to achieve and are more motivated to achieve it.
Finally, with all the market and business knowledge, you can discover the times when you sell more and less throughout the year, and can create appropriate actions for each situation. This reduces sales fluctuations and allows your company to grow consistently.
3. To make an efficient sales projection, you need to look at the history of your business and the market in which it operates, understanding the periods of high and low sales, as well as the behavior of your consumer. Based on this information, it is possible to have a perspective that is closer to reality.
In this process, a management system can help a lot , because it concentrates all of your company's sales data and provides the necessary support for your business analyses.
What is sales projection?
Sales projection is an outlook for how much your company will sell over a period of time , such as a month, a quarter, or a year. It is based on concrete data about your business and the market.
Many companies end up making sales estimates based solely on unproven beliefs. This can be very damaging to the business and the sales team, who end up not knowing what strategies to take. Especially in times of crisis, sales projections can provide some guidance for the business and allow the entrepreneur to make decisions with less risk.
What should be included in the sales projection?
A simple sales projection should include the expected volume of products sold, the expected revenue amount, and the time frame in which the expected goals should be achieved . However, sales projections can be made in different ways.
You can do this, for example, by channels such as physical stores and e-commerce. Each distribution channel can also be subdivided by product category.
Therefore, the sales projection must have a reference, such as a drop or growth indicator, the average sales of the previous period, etc. You can also create it considering different market scenarios, with minimum and maximum margins to support decision-making.
In this sense, it is important to point out the origin of the growth indicators or the actions that must be taken to achieve the projected values. If your business shows a value above the average in December, because of Christmas, it is important to remember that this is a specific behavior and linked to a specific period of the month, so that there is no distorted interpretation of these numbers.
What are the main methods for making sales projections?
There are different methods for making sales projections, and you need to find the one that best fits your business' reality . We will present more details about each of them in the following topics.
Sales projection based on actual results
One of the most famous and relevant methods is the one that considers the company's sales history. In this case, an analysis of the results obtained and what generated this scenario, such as marketing strategies, must be made.
To do this, you can enter the amount received in sales during a given period, such as 6 or 12 months, into a spreadsheet. This makes it possible to look for a pattern of growth or decline .
Sales projections do not consist of simply noting how much sales have increased during a previous period and expecting the same return during the following periods. After all, the market is not linear in this way. However, this is a way of obtaining relevant data for your planning and understanding of your business.
Market-based sales projection
Another common situation is to analyze the market and your competitors to have data for your sales projection . This is especially valid when a business is starting its activities or expanding its operations.
In this case, to make a sales projection based on the market, you can analyze a business similar to yours or evaluate market research and estimates, using indicators and trends.
Stock-based sales projection
Sales projections can also be made by considering actions that can boost your sales , such as participating in an event. However, it is essential that, in this case, the projection has some basis.
If you have already carried out a sales promotion campaign in a previous period, for example, and obtained a 10% increase in sales, you already know that, when planning a similar promotion, it is possible to make a similar projection.