The knowledge of running a business can be measured in all different levels. The ability to know the history of your services, prices, and/ or products, is good to know because it can guide you in the proper direction to project your business. It gives you an outlook to look forward to in your market and possibly allowing others to look into your business for further assistance into theirs.
Being able to predict your future sales can provide information on where to heighten your employee hours and lower costs on products that will not be needed. For example: H&R Block runs all year, but does not run their maximum amount of employees until tax season. The same with any of the other holiday specialty stores. They need to have some sort of knowledge of when to be able to amplify their business outside of websites alone. With the need to open stores and hire seasonal employees in time for a fully operational opening, a future sale analysis is necessary.
But for those businesses that run throughout the whole year without the need for a specific time of the year to tell them when to run at full force, here are 3 top ways you can predict your future sales to make sure your business profits in its top form.
- Time series. As mentioned above, being able to predict the future of your sales through the historical relationships between time and sales can increase your chances at future success. Knowing your growth curves for the evolution of quantity over time and linear predictions to look at your previous sample linear functions are good ways to begin the process.
- Force estimation method. Stacking positive reviews of your customers can be one of the most effective tools to your selling point. But with this method, you would be getting the opinions of other sales peoples. The relationship between sales staff and customers allow for more up to date and sincere feedback than any website or third party company can provide. Estimating your trends can also help interpret statistical data for your business.
- Qualitative versus quantitative sales forecasting methods. Quality versus quantity has always been a debate for most services in any business. While a group of experts is put together to measure the quality of your business by averaging the feedback from customers and seeing where improvements may need to be made, another group manages past sale’s history to see where in the year and/ or month, material and growth will be needed.
While these are barely three ways to predict your sales future, other ways are also available to assist with your business projections. You have extrapolation where you are able to estimate something beyond the original range of observation. Exponential smoothing where applying data in a time series for producing smoother data.
Here at Mogo CRM, we strive to help you with your business projections. Allowing our team to predict your future sales can alleviate some stress out of your way, and even help your sales improve. Check us out at http://mogocrm.com/ and give us a call today.